Market Morality: Robert Nozick and the Question of Economic Justice

Abstract

Abstract. The study of markets and market prices has been a central feature of economic inquiry since the 18th Century. There have always been lingering questions on the meaning of market prices. Most moderneconomists argue that there are no normative implications to price analysis. The disclaimers of some economists about normative judgments ring hollow in the light of their vigorous advocacy of free market solutions to economic and other problems. Either free market solutions are superior alternatives or they are not; one cannot have a value free analysis and an ideological advocacy at the same time. The philosopher, Robert Nozick, in Anarchy, State, and Utopia, clearly finds meaning in the market place. His entitlement theory is predicated upon free exchange of goods and productive services. The normative use of free markets in general and of Robert Nozick's formulation in particular, it is contended, are inconsistent, illogical, and unscientific.

Is income inequality unjust? Perspectives from political philosophy

“…A fair distribution of income is not one that gives everyone what they deserve (as the luck egalitarians would argue), and certainly not one that preserves a particular pattern of distribution (e.g., a certain level of inequality), but the one that would emerge from the (genuinely free) choices of individuals engaged in mutually beneficial exchanges with one another of things they can legitimately own, and that neither the state nor anyone else has a right to simply take from us, unless we have explicitly agreed to give them up. This idea can clearly be taken too far (for one thing, the 'genuinely free' proviso, as well as the question of what we can be said to own, are both difficult to specify and subject to reasonable disagreement), and there are many critiques of Nozick (Francis and Francis, 1976;Fried, 1995;Gregori, 1979;Nagel, 1975;Nock, 1992). My point is only that Nozick draws on a deep moral intuition about the importance of choice and ownership in a free society which resonates deeply with many citizens and cannot be simply attributed to their being 'deceived' about their true interests in a more equal distribution of income and wealth.…”

Ethics and the Auditing Culture: Rethinking the Foundation of Accounting and Auditing

“…The encompassing role of government, however, includes protection of society against fraud, theft, and contract violation (Nozick, 1974) -issues implicit within the scope of a business's duties to society and the auditor's responsibilities in asserting the accuracy of a firm's financial statement. A fundamental assumption of the Contributing Liberty ethical model is that individuals are entitled to the assets that they earn by providing benefits to others (De Gregori, 1979). The value of those assets is determined within the context of a free market, and individuals within a society should have a right to pursue goals that do not impinge upon the rights of others (De Gregori, 1979).…”

“…A fundamental assumption of the Contributing Liberty ethical model is that individuals are entitled to the assets that they earn by providing benefits to others (De Gregori, 1979). The value of those assets is determined within the context of a free market, and individuals within a society should have a right to pursue goals that do not impinge upon the rights of others (De Gregori, 1979). To the degree that business executives or accountants would misrepresent the worth of their company in a financial statement or that an auditor would certify the financial health of a business entity in the face of reasonable knowledge that the company is not in the condition reported in the financial statement, those actions would violate the Contributing Liberty ethical model.…”