Question

Demonstrate the attempt to justify the free market in both utilitarian and rights-based (deontological) ethics. Do you think that either of these approaches (or perhaps both) effectively serves to justify a free market system in whole or in part? Give reasons for your answer.

Answer 1

A free market system, because demand and supply forces setting the market price, volume of output to be produced and type of output to be produced, without government intervention. When utilitarian perspective is applied, then impact of free market is to be observed in terms of the benefits to the majority of the society. Here, free market fulfills the wishes of the majority as they get what they have demanded. Hence, it makes free market system to be ethical in nature. But, Deontological approach identifies the intention of the action and finds that free market may not suit to those who are poor, smaller in size with respect to firm and setting up responsibilities and accountabilities of the firms. Hence, from Deontological perspective, free market system is not ethical and it must be regulated by the government in a way that free and fair market is developed, best interests of the consumers are protected and poor section of society also gets the share what they deserve. So, utilitarian approach justifies the free market system, because it is all about benefits to the majority and it is happening in the market. But, Deontological approach is all about the intentions of the action that is profit making, rather welfare. So, free market system, cannot be justified using Deontological approach.