Summary
Utilitarianism is a philosophical theory that states that the morality of an action is based on its effects; any action that increases the pleasure and happiness of the greater majority is just. It has two classes: act utilitarianism and rule utilitarianism (Hausman et al., 2017). Utilitarians believe that the primary role of morality is to create more good in the world and reduce the number of bad outcomes. As a philosophical school of thought, utilitarianism has been subjected to harsh criticisms. However, several 21ts century thinkers have lauded it as a sound philosophical system that has a wide range of applications. Utilitarianism is a weak philosophical system because its main concern is the effects of people’s actions, and not whether the individuals are moral or immoral (Hausman et al., 2017). In that regard, it alienates people from their emotions and feelings, thus giving them the authority to act as they consider appropriate. A major criticism against act utilitarianism is the implication that certain acts of enslavement or torture whose outcome is more happiness are permissible (DeMartino & McCloskey, 2016). Its insistence on happiness as the primary goal in life is a contentious issue. Opponents of the philosophy argue that happiness is unattainable because, like a horizon, the nearer human beings are to it, the further it recedes.
Utilitarianism’s Application in Economics
Utilitarianism’s application in economics is based on its key principle that a choice or action that produces the greatest good for the greatest number of people is ethical. Utilitarians maintain that economic liberties and competition are necessary factors in wealth generation (Hausman et al., 2017). However, they note that market freedom should be allowed only if it enhances maximum public utility. Therefore, a utilitarian government can interfere in a market’s structure and functions if such actions result in higher utility that protects the economic freedom of all players and avoids negative forces (DeMartino & McCloskey, 2016). The utility is a difficult concept to define. However, economic growth and improved standards of living are factors that can increase happiness. In that regard, utilitarians support Adam Smith’s insistence on the importance of economic freedom because the creation of free markets has improved the average quality of life throughout the world (Hausman et al., 2017). It is also noteworthy that the emergence of capitalism resulted in the improvement of living standards. Some economists have argued that before capitalism became operational, the GDP per capita remained constant for many centuries.
Reforms that Utilitarianism would Support
Capitalism has been the most effective economic model that has improved human beings’ overall well-being. Utilitarian principles suggest that laws and social practices should be implemented depending on their effect on overall utility (Hausman et al., 2017). In that regard, utilitarianism would support social reforms that favor the prosperity and advancement of the entire society. Policies that favor individuals at the expense of communities and groups of people would be rejected since they violate utilitarianism’s main principles. Examples of potential reforms include universal healthcare and economic policies that support socialism.
References
Ayres, R. U. (2020). On capitalism and inequality: progress and poverty revisited. Springer.
DeMartino, G. F., & McCloskey, D. N. (2016). The Oxford handbook of professional economic ethics. Oxford University Press.
Hausman, D., McPherson, M., & Satz, D. (2017). Economic analysis, moral philosophy, and public policy (3rd ed.). Cambridge University Press.
Hodgson, G. M. (2015). Conceptualizing Capitalism: Institutions, evolution, future. The University of Chicago Press.