Question

Summarize the Libertarian and Utilitarian arguments in favor of the market.

Answer 1

As markets or places of interaction among sellers and buyers expanded, numerous economists came up with their own views on how a country should ideally be managed. Over the years, numerous techniques were formed and some countries preferred having one over the other.

The Libertarian approach of economics, signifies the fact, that capitalism in a market must be restricted as much as possible. The approach says that capitalism in a market allows some people to have better access while others do not favour from the same. It should thus be abolished and common goods should be allowed. It also states, that private ownership of property or forces of production lead to problems in any economy and restrict the freedom and liberty which people would have if common goods or services were manufactured, and the government controlled the same.

On the other hand, the Utilitarian approach says that the market should function for the common happiness of people without looking at whether this happiness will bring positive or negative effects in the society. As long as the majority population is happy with the decision making it should be acceptable by the market. For example, if majority of people are happy with the production of marijuana, the market should allow for this. This is one of the major flaws of the utilitarian approach of markets.

The core difference between the two is that in Utilitarian approach considers happiness to be the end goal, while Libertarian approach lists the guidelines on how this is to be done and have their own perspective on how to run the market.

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