Economic Theories and Their Impact on Ethical Reasoning

Economic Theories and their Impact on Ethical Reasoning
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Economic Theories and their Impact on Ethical Reasoning
Ethical models are the most critical aspects that determine people’s behaviors and relationships with others. For that reason, every individual must uphold a virtue as a character trait that enables them to act following the set standards. Economists and theorists reveal the evolution of economic thought based on the challenges in the market system. Although communists and socialists are the major economic systems, their deficiencies have resulted in corrupt acts. Notably, imperfections in the market result in significant imbalances in society. In the contemporary world, most communities have embraced capitalism, in which most people focus on making profits. While capitalism is effective in producing wealth, it might result in various breaches of ethical philosophy. Economic theories have a significant impact on virtues as one of the ideal examples of moral philosophy.
Virtue ethics is one of the moral theories that emphasize the importance of individual characters in assessing the right actions. One of the emphases of the philosophy is the need to adhere to ethical rules. Therefore, an effort can only be right if a virtuous agent would execute it in a similar circumstance. In most instances, virtues are some of the acceptable behaviors among society members. Therefore, an individual needs to adhere to ethical standards. According to Mitran and Ipate (2014), one of the unique aspects of virtue ethics is that it does not compromise an individual’s motivations and reasons. For that reason, any virtuous individual adheres to moral teachings and practices to maintain interpersonal connections.
Keynesianism and libertarianism are examples of economic theories that significantly impact virtue ethics as moral philosophy. The two approaches are likely to provide solutions to the problems that might emerge in the market economy. Since inflation and employment are some of the general issues in society, they represent a poor basis of governance. However, most people focus on maximizing profits at the expense of virtue ethics (Mitran & Ipate, 2014). Therefore, markets should provide incentives to ensure that all producers bear the consequences of their decisions. However, they have imperfections that lead to significant imbalances in the economy. One of the solutions would be to monitor inputs for standard incentive schemes in addressing any underlying issues in the economy.
Besides, communism and socialism are equally relevant economic theories that significantly impact virtue ethics as moral philosophy. Notably, expanding different forms of universal grants enables the shift towards communism as the core objective. Research findings indicate that affluent cap...