Economics, Ethics and Moral Philosophy
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Bibliographic details
- Authors: ANTHONY ANNETT
- Published: March 1, 2018
Overview and context
- Author: ANTHONY ANNETT.
- Publication: F&D Magazine, March 2018.
- Central claim: Modern economics must restore ethics and re-center a commitment to the common good as a moral boundary on the market economy.
- Framing problems: rising inequality and economic insecurity; memories of the global financial crisis and perceived impunity; globalization perceived to privilege large corporations and the financial elite; looming climate change—all undermining trust in institutions and provoking backlash.
Sustainable Development Goals (SDGs) as ethical framework
- The 17 Sustainable Development Goals (SDGs) adopted by 193 nations in 2015 provide a response to these challenges.
- SDGs premise: economic progress must be evaluated with reference to social inclusion and environmental sustainability.
- Policy implication: markets alone cannot solve these problems; cooperation between nations and social partners is required.
- Recommendation: use the SDGs to delineate a common good that balances national human flourishing with responsibilities of wealthier nations toward poorer ones.
Critique of neoclassical economics and "homo economicus"
- Neoclassical economics separates the positive from the normative, treating preferences as sovereign and unexamined.
- Ethical paradigm centering on “homo economicus” endorses egoism and elevates material pursuits.
- Consequences asserted:
- Ethical blindspot where goals of economic life reduce to material and financial gain.
- Fueling of massive inequality, financial instability, and the environmental crisis.
- Quoted judgments:
- Amartya Sen: an economy can be Pareto efficient but still “perfectly disgusting.”
- Sen on homo economicus: a “social moron.”
Evidence from behavioral and biological sciences
- Psychology, neuroscience, and evolutionary biology challenge the adequacy of homo economicus.
- Edward O. Wilson: evolutionary forces imply selfish individuals may triumph within groups, but groups of altruists beat groups of egoists—implying humans are hardwired to cooperate and uphold moral norms while also favoring insiders over outsiders.
- Behavioral economics findings: people tend to cooperate, share, reward trust, and punish cheating—even at financial cost to themselves.
- Subjective well-being literature: relationships and purpose are primary for well-being; money does not buy happiness beyond a certain level.
- World Happiness Report correlations: happier countries tend to be wealthier and also enjoy stronger social support, higher levels of trust and generosity, and greater ability to unfold capability free from impediments (including corruption).
Ethical frameworks and human flourishing
- Contrasting views of value:
- Utilitarianism: happiness as hedonic pleasure maximization—aligned with neoclassical economics.
- Aristotelian eudaemonia: human flourishing through meaningful relationships, purpose, contribution to community; virtues as actualizing potential.
- Capability approach (Amartya Sen, Martha Nussbaum): unfolding capabilities to do or be what a person values.
- Political implication: common good defined as a shared social experience that transcends individual goods and is synonymous with institutions furthering the well-being of all, including future generations.
- Tension noted between universalism (Kant, utilitarianism, Peter Singer) and particularism (Aristotle): balancing cosmopolitan responsibility with attachment to community and civic identity.
Practical policy priorities and recommendations
- Restore ethical reflection to the heart of economic reasoning.
- Re-center policymaking on the common good and re-embed ethical education in economics and business programs.
- Recognize and support decent work as vital to human flourishing (dignity, purpose, social contribution).
- Limit excessive reliance on financial incentives where they undermine virtues such as fairness, honesty, and trust.
- Prioritize the environmental imperative: shift to a zero-carbon energy system over the next three decades.
- Use the SDGs as a practical, affordable road map compatible with major secular and religious ethical traditions to repair globalization’s fault lines and strengthen multilateral cooperation.
Source: "Restoring Ethics to Economics," ANTHONY ANNETT, F&D Magazine, March 2018.
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