3.10: The Ethics of Capitalism Flashcards
What are some key challenges to the ethics of capitalism?
Greed: Excessive self-interest leading to deceit, corruption, and fraud.
Economic downturns: Natural cycles of booms and busts within capitalism.
Business failures: The shift of resources from unsuccessful businesses to stronger ones.
Income and wealth inequality: Disparity between rich and poor, often seen as inherent in capitalist systems.
How is greed viewed in the context of capitalism?
Greed can drive self-improvement but can become harmful when it leads to excessive self-interest.
Gordon Gekko’s famous line, “Greed is good,” represents the idea that greed can clarify and propel growth, but unchecked, it can result in corruption and unethical behavior.
What are the common criticisms of economic downturns in capitalism?
Critics argue that the lack of government regulation and oversight during prosperous times can lead to economic crises, such as the 2008 collapse of financial institutions.
How does capitalism address business failures?
Capitalism disposes of unsuccessful businesses and reallocates resources to more productive uses.
This process, while essential for efficiency, can come at a significant cost to those who lose their jobs and investments.
What are the issues surrounding income and wealth inequality in capitalism?
Income inequality often grows under capitalism, with the focus on the gap between rich and poor.
Critics argue that capitalism exacerbates inequities and social injustice, as those at the bottom may not fully use their potential due to systemic disadvantages.
How do supporters of capitalism justify income inequality?
They argue that inequality is necessary in a dynamic economy to provide incentives for hard work and innovation.
Redistribution through taxation and social programs can help address extreme inequities.
What role does corporate crime and wrongdoing play in critiques of capitalism?
Corporate crime and wrongdoing damage the reputation of businesses and are often cited as examples of the unethical behavior that capitalism can enable.
How is capitalism defended as an ethical system?
Supporters of capitalism argue that it promotes wealth, prosperity, and individual freedom.
It allows for innovation and creativity, benefiting society with superior goods and services.
What is the role of ethics in modern capitalism?
Corporations are increasingly held accountable for their ethical behavior, with consumers demanding socially responsible practices. Integrity in business is now considered essential for long-term success.
How does capitalism influence individual freedom?
Capitalism respects individual freedom by allowing people to pursue their objectives and happiness. It encourages personal responsibility and protects the freedom of independent decision-making.
