New York Times Economix: The Weak Heart of Economics Nancy Folbre
In a post last week, my fellow blogger Edward Glaeser asserted that freedom is the "moral heart" of economics. His clear account helps explain how many economists think and feel. But he overstates the agreement among economists, and he overreaches with his emphatic focus on freedom with no regard for responsibility or care. …
… The emphasis on freedom as our top priority reflects a vision of economic actors as adult, able-bodied individuals unencumbered by responsibility for others. Professor Glaeser happily quotes Adam Smith: "Every man is, no doubt, by nature, first and principally recommended to his own care." True for men perhaps, but not for babies, boys or girls.
We humans experience periods of dependency at the beginning of our lives that largely determine our access to resources – including the development of our own human capital – as adults. We remain subject to unexpected illness, disability, unemployment, accident and assault as adults, and if we survive these, we eventually become dependent on others in old age.
Individual freedom doesn't necessarily conflict with the care of those we love, because love itself shapes our preferences, our utility functions. We often freely choose to sacrifice for others.
But preferences alone don't provide a secure basis for the care of dependents. That's partly why societies develop concepts of social responsibility and legal obligation that often infringe on individual freedom. …
I think she has some important points here. The challenge becomes the form social responsibility is supposed to take. Businesses are not the lord over a feudal manor, providing for peasants who have no mobility in choosing another job if they don't like the one they have. Saddling businesses with the complete care and well-being of their employees is anachronistic. Yet businesses do benefit from a healthy and well-educated workforce. So it seems that they have some level of responsibility in promoting the general welfare of society beyond just maximizing profit in the course of providing useful goods and services. That is where the ethical rub exists.
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