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In: Economics

Q1 Several government policies have been proposed to attempt to mitigate the economic effects of COVID-19....

Q1 Several government policies have been proposed to attempt to mitigate the economic effects of COVID-19. Some are using traditional monetary and fiscal policies (such as cutting interest rates, quantitative easing and bailouts). Others are trying out non-traditional methods (such as direct cash transfers, loans to businesses conditional on maintaining employment and wage subsidies). The Australian Government has implemented several economic measures in response to COVID-19. These include providing two separate $750 payments to social security, veteran and other income support recipients to support households. They are also expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight to eligible recipients.

a) From a consequentialist perspective, is the introduction of payments to support households and income during the COVID-19 crisis (described above) ethically justified?

b) Using a deontological ethical framework, construct an argument either in favour of the payments to support households and income during the COVID-19 crisis (described above) or against them.

Solutions

Expert Solution

( a ) In ethics a consequentialist perspective is when an action is judged to be right or wrong by looking at the consequences of the action performed.

The introduction of payments to support households and income during the COVID-19 crisis in such an unprecedented crisis due to the pandemic is justified from a consequentialist perspective becasue the consequences of income transfers and income support would be to supplement the incomes of people affected, thereby helping them maintain the same standard of living than before the pandemic.

( b ) In ethics deontological framework is an ethical perspective which judges an action to be morally good or bad based on whether the action that is being performed is one's duty and not based on what its consequences would be.

In this ethical framework, performance of one's duty is emphasised and is considered to be the most important action.

It is generally read against the consequentialist perspective.

Thus, under deontological framework, income transfer can only be justified when it is considered as the duty of the government to take welfare measures for general welfare of the people.

It is government's duty to ensure no citizens go hungry, or become homeless due to any adverse situation, in this case, COVID-19 pandemic.

Therefore, income support and various measures taken by the government have been performed taking note of the government's duty to do so.


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