3.3: Individualism and Economic Freedom Flashcards
What is individualism in the context of economic systems?
Individualism is the view that individuals, not society or a collective, are the paramount decision-makers in society.
It assumes individuals are inherently rational and capable of making their own choices.
Individualism values agency, self-determination, and the freedom to pursue personal interests with minimal government interference.
How does individualism promote economic freedom?
Individualism promotes economic freedom by allowing people to make their own decisions regarding their economic activities, such as** choosing occupations, entering contracts, and determining how to use their property. **
This encourages entrepreneurship and innovation, leading to economic progress.
What are some key factors used to identify and measure economic freedom?
Property rights: Are private property rights protected by the rule of law?
Taxation: Are taxes that hinder economic activity minimized?
Government intervention: Does less government intervention improve economic freedom?
Regulation: Are regulations minimal, straightforward, and efficient?
International exchange: Are there restrictions on international trade or currency movement?
Foreign investment: Are there limits on foreign investment?
Monetary policy: Does the government maintain tight control over money and inflation?
Wage and price controls: Can businesses set wages and prices freely?
Corruption: Is there corruption in the economy?
How is individualism related to the division of labor and specialization?
Individualism is linked to specialization, where individuals and businesses focus on specific tasks within the production system.
This fragmentation allows for efficiency in producing goods and services, with each part contributing to the whole.
It also encourages entrepreneurial talent and innovation.
What are the potential downsides of individualism in a capitalist system?
While individualism promotes personal freedom, it can also lead to selfishness, greed, and the belief that one can exploit or control others.
Additionally, businesses may restrict employee freedoms, such as through dress codes or regulations, and governments may impose licensing requirements that limit economic activities.
What is interdisciplinarity, and why is it important in addressing complex problems?
Interdisciplinarity refers to experts from different fields working together, sharing knowledge and perspectives to solve complex issues.
It allows for creative solutions that go beyond the limitations of any single field, which is especially important in areas like healthcare and innovation.
How does the ethical debate between individualism and communitarianism affect views on society?
Individualism emphasizes personal achievement and independence, while communitarianism focuses on collective well-being and social cohesion.
The ethical debate arises around whether society should prioritize individual rights and freedoms or work towards a more integrated and interdependent approach to address societal needs.
What are some ethical concerns related to economic freedom in businesses?
Employee freedoms: Businesses often limit employee freedoms through contracts, dress codes, and work regulations.
Corporate power: Corporations can exert significant control over employees and resources, sometimes leading to exploitation.
Licensing and government regulation: The need for business licenses and adherence to government regulations can restrict individual economic freedom.
