Chapter 7
ECONOMIC THEORIES OF
SOCIAL JUSTICE
(ParaphrasticReading)
This chapter as the title states is about economic justice. Economic justice is an element of social justice, it “focuses on individual and groups, as well as the social order, the moral principles which guide people in a given society in designing their economic institutions” (p131). Economic justice is composed of three principles, these include: The Principle of Participation, The Principle of Distribution, and The Principle of Harmony. Next the chapter discusses capitalism, which “is an economic system characterized by the private ownership of the means of production, from which personal profits can be derived through market competition and without government intervention” (p132). There are various principles of capitalism enumerated, these include: Laissez-faire principle, Individual Rights principle, Limited Government principle, Private Property principle, Competition principle, Voluntary Exchange principle, Consumer Sovereignty principle, Consumer Sovereignty, and last but not least Profit Motive principle. Capitalism also has it flaws, it fails to reward desert, and it promotes inequality. Reactions to capitalism lead to socialism, which “is defined as an economic system characterized by public ownership of the means of production, the pursuit of collective goals, and centralized decision making. The government is ascribed to many roles, some of which include: distributing of shared goods and health services among society, and to prevent any revolt within the country. The key goal of socialism is to remove economic inequality and injustice completely. However, socialism also has its flaws, it “limits the prosperity of its citizens” and it’s “faulted for shifting to extreme government control and dictatorship” (p138). Finally, the chapter wraps it up with the discussion of welfare state. “The welfare state aims to ensure a minimal state of well-being for citizens by placing some limits on rewards through taxation” (p138).
Segment to Paraphrase:
The goal for the welfare state is to guarantee the health and security of their citizens by having restraints on profits through taxes. These taxes raise money provide social services for the poor to reduce economic inequality. The welfare state is also known as Welfare Capitalism. Welfare state is only used for facade. However, welfare state bends toward the capitalist side, which supports unemployment, and inequality.
The segment that I have chosen above is vital to this chapter. It demonstrates that our very own government (which is also capitalist) promotes inequalities. This view point enlightening, a country that I have always believed to serve justice contains such perspectives.