Question

Ethics deals with morality and I would contend that capitalism is an amoral economic model! Note: amoral means without morals, neither good nor bad.

What do you think about this statement? Please briefly comment.

Is socialism an amoral economic system?

Answer 1

1) Capitalism can be defined as an ideology and an economic system which is based on the private ownership of the means of production and profit motive. A prerequisite to capitalism is freedom and other main characteristics of capitalism include capital accumulation, voluntary exchange, private property, competitive market and a price system. The entire system is regulated by the private individuals or businesses and law of demand and supply.

In my opinion, I disagree with the statement that capitalism is an amoral economic model. Capitalism is a system in an economy where private entities own the factors of production namely entrepreneurship, natural resources, capital goods and labor; and ensures that an economy will produce the most desired products at an acceptable price. It is build on democracy and socially good. Capitalism is morally justifiable is due to the economic growth. It is as owning property that is not extorted or stolen. It has sufficient moral as any trading transaction made among the two parties with no whiff of coercion, force, or fraud. United States as a capitalist country is happiest in the world because it allows free-market, whatever products people want, they can get

2) Socialism refers to an economic system where everyone in the society equally owns the factors of production; and the system is controlled as well as regulated by the government to ensure equal opportunity and welfare to the people in a society

In my opinion, I agree with the statement that socialism is an amoral economic model. It is morally unjustified because reduces the competition and results to slow technological advancements as property is not hold individually. However it is morally justified also because fulfils survival requirement of all people in society and provides opportunity for citizens to explore non-economically-productive pursuits. Thus is an economic model which is neither good nor bad