Tuesday, July 1, 2014

Essay on Economic Justice

Justice is, in the first place, a basic concept of socio-political, moral and legal issues. As such, it is the concept of due parity. In general terms, it is the parity between the real value of different individuals (social groups) and their social position. In more concrete terms, the parity between their rights and obligations, crime and punishment, between the act and the reward, and remuneration, etc. The discrepancy in these relations is estimated as injustice.

Justice is also a basic concept of the economy. As an economic concept, justice refers to that section of the economy as welfare economics. Here it is understood as a lack of interest or impartiality (fairness). This understanding of justice was named after its author - justice by Rawls. In his book "A Theory of Justice," he argues that justice is a sign of the society, which individuals would choose if they were not influenced by purely personal interests. In this state they are disinterested as if to conclude an agreement on the nature of society and its economic system. "Ignorance" of their interests do not allow them to know the position (determined by ability, gender, race), which they will take in this society. In this case, the company will be chosen from four properties and these properties can be regarded as the property of justice.

The properties of justice as an economic concepts. The first is the equality of rights for the maximum liberty compatible with the freedom of other individuals. The second is inability to ensure economic equality through the first property. Third is the competitive nature of inequality, it may be the result of free competition. The fourth property is a utilitarian justification of inequality, i.e., it can be justified only insofar as it benefits all members of society. The last two properties are focused in a constitutive principle of justice.

Constitutive principle of the modern understanding of justice as an economic concept is "a differential principle." It requires that the inequality guaranteed the greatest possible welfare to the poorest members of society.

The etymology of English words equity and fairness are very “economical." Fairness of Fair means market; Fair exhibition. But the term “equity” has most wide range of economic meanings. Already on the surface analysis, we see that along with the word justice, it means at least five basic financial concepts associated with the share. Among them are the ordinary shares, the share capital of the shareholder in the company, equity, capital, margin (the difference between the market value of the shares and the state of the client's margin account with a broker, i.e., the size of the loan obtained under them). This range of the equity meanings can be explained by the fact that the share is the greatest "democratizer," i.e., an equalizer of the bursts of economic life, for the rights that it presents do not depend on the status of their holder.

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