There is growing concern about poverty and income inequality. These two concepts, however, are not the same. Income inequality deals with the percentage of income earned by the different income groups, while poverty is concerned with how difficult it is for the poor to meet basic needs. Using deontological and consequential approaches to ethics, evaluate how well free market systems versus government intervention in markets address poverty and income inequality. How people in a free market economy, acting in their own self-interest, can better those around them?

 

Deontological approach in ethics states that the morality of an action taken should be based on whether the action itself is wrong or right rather than the consequence of the action itself. In deontological approach of ethics, action is more important than the consequences of the action. The approach further argues that it is not the consequences of the actions one takes that makes them right or wrong, but the motives behind the person carrying out the actions.

Step-by-step explanation

A free market system refers to an economy that is controlled by the market forces of demand and supply with little or no government intervention or control. In a free market system the economy has more economic opportunities to all citizens as the decisions on investments and production are all guided by price signals that are created by the market forces of demand and supply. In this type of system, the good things are acquired by the people who work for them. This creates a competitive environment in which people put in more effort in order to better their lives, rather than rely entirely on the government to improve their welfare. Suffice to just say the system rewards hard work and productivity. The level of productivity in the free market system also contribute positively towards the increase of life expectancy among the economic agents. Under the deontological approach, the free market system helps address the poverty and inequality issues by promoting a productivity led culture in which the most hard working are rewarded more for their efforts. When more people become economically productive in an economy, the poverty levels decrease significantly.

Consequential approach in ethics states that the rightfulness or wrongfulness of an action should be judged based on the consequences of that particular action. Under the consequential approach of ethics a free market will not be ethically right. A free market breeds evil in the society as people become more oriented with everybody for himself kind of mentality which further leads to a man eat man culture. In consequential approach, ta government intervened economy is better suited than the free market system. This is because the government intervenes by creating regulations which protects the society from the evil acts that exist in a free market system.