PHILOSOPHICAL PROBLEMS     IN ECONOMICS
 UTILITARIANISM LIBERTY AND EQUALITY PREFERENCE, CHOICE AND SELF  INTEREST HAPPINESS
UTILITARIANISM
Utility (the greatest happiness principle)- holds that actions are right in proportion as they  tend to promote happiness,...
Imagine a situation in which a boat is sailing in to theDeep-Sea. It is carrying ten children. I am the eleventhperson, th...
There is only one hope. If the boat is lighter by a coupleof hundred pounds it can stop sinking and stabilize. Thatmeans t...
Utilitarian- A utilitarian would throw two people out of the boat and  save the other nine as opposed to allowing all elev...
LIBERTY AND EQUALITY
Liberty formal                 Liberty formal          Ability to choose as one likes, without interfering                ...
Milton Friedman- human freedom and economic freedom work  together. They are part of the same whole.  The greatest threat ...
- Equality of opportunity, then like personal  equality, is an integral part of liberty- He contrasted this with a differe...
Richard Henry "R. H." Tawney- „equality implies the deliberate acceptance ofsocial restraints upon individual expansion. I...
- liberty implies that every individual is free to  fully exercise all his powers without limit, if it  is the power of th...
PREFERENCE, CHOICE AND     SELF INTEREST
You choose what you prefer; you prefer whatyou choose, as it augments your selfinterest.
Preference - the act, fact, or principle ofgiving advantages to some over otherspriority in the right to demand and receiv...
Situation: The basket contains multiples of both fruit. There  are a number of people present. Most have the same  prefer...
Or: There is only one mango and many people, but thehostess insists that you take the mango: here thevalue of the mango ha...
Or: If there are a number of people presentwith only one mango and the rest apples and youdon‟t know their preference, you...
Or: If there is only one apple and one mangowith only two people remaining at the dinnerparty and both of you prefer the m...
You take the mango- you choose what you prefer,directly serving your self-interest. You choose themango but it now has a d...
You don‟t choose the mango. You don‟t choosethe mango due to sympathy. You care about theother person and seeing his pleas...
You participate in a game concerning strategic nobility. Youpass the basket to you dinner partner, and hope that hisdecisi...
You forgo the mango and pass it on to your dinnerpartner as your reputation is of more consequencethan attaining the mango...
Situation:A married man who is unhappy with his wife, and is inlove with other women does not indulge in an affair,even if...
Is there always a clear link between choice,preference and self- interest?
You may choose an action, which you don‟t prefer.Sometimes our choices can be mistaken due tomisinformation or expectation...
HAPPINESS
Jeremy Bentham- postulated „The greatest happiness for thegreatest number‟ principle as the aim of life.But Bentham and mo...
Richard Layard- declared that happiness can be measured- ask people how happy they are, and we then ask  their friends and...
Jeremy Bentham and William Stanley Jevons- believed that the human mind was  inscrutable- it was perceived hard to imagine...
THANK YOU FORLISTENING 
Upcoming SlideShare
Loading in …5
×

Philosophical issues in economics

448 views

Published on

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
448
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • xvv
  • Philosophical issues in economics

    1. 1. PHILOSOPHICAL PROBLEMS IN ECONOMICS
    2. 2.  UTILITARIANISM LIBERTY AND EQUALITY PREFERENCE, CHOICE AND SELF INTEREST HAPPINESS
    3. 3. UTILITARIANISM
    4. 4. Utility (the greatest happiness principle)- holds that actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness.- by happiness is intended pleasure and the absence of pain, by unhappiness, pain, and the privation of pleasure.
    5. 5. Imagine a situation in which a boat is sailing in to theDeep-Sea. It is carrying ten children. I am the eleventhperson, the sailor, the only one capable of sailing theboat. Without the sailor the boat will sink. A catastrophehappens. The boat is overweight. It slowly starts sinking.All eleven of us will drown within the next three minutes.There are no rescue facilities available. No help can berelied upon.
    6. 6. There is only one hope. If the boat is lighter by a coupleof hundred pounds it can stop sinking and stabilize. Thatmeans two people from the boat have to jump out. I can‟tleave because I am the only one who can manage the boat.The choice is in this situation to make two childrenpeople leave the boat or to put it bluntly throw two ofthem out.
    7. 7. Utilitarian- A utilitarian would throw two people out of the boat and save the other nine as opposed to allowing all eleven to die.Non-utilitarian- To minimize the pain of letting eleven people die orforcibly throwing two out, he could ask two to jump out.Hopefully having the solace that they are saving lives of ninepeople in the process, so their pain of embracing death isminimized by knowing their death is not going to waste, asopposed to sinking with the boat and dying needlessly
    8. 8. LIBERTY AND EQUALITY
    9. 9. Liberty formal Liberty formal Ability to choose as one likes, without interfering with others ability to do so. Libertyprinciple Ability to do or refrain from doing definite things in regard to ones basic needs. Equality limited opp. Situation in which birth, nationality, colour, religion, and sex do not prevent people from achieving the positions in life they want and meet their talents. Equality outcome Situation in which everyone has the same level of living and income.
    10. 10. Milton Friedman- human freedom and economic freedom work together. They are part of the same whole. The greatest threat to human and economic freedom is the concentration of power, in the hands of the government or anyone else.
    11. 11. - Equality of opportunity, then like personal equality, is an integral part of liberty- He contrasted this with a different meaning, equality of outcome- All should win the same prize. “Fair shares for all, To each according to his needs, from each according to his ability”- This is where liberty and equality are not synonymous he feels
    12. 12. Richard Henry "R. H." Tawney- „equality implies the deliberate acceptance ofsocial restraints upon individual expansion. Itinvolves the prevention of sensational extremesof wealth and power by public action for thepublic good‟
    13. 13. - liberty implies that every individual is free to fully exercise all his powers without limit, if it is the power of the strong on the weak, then liberty is incompatible with equality.- to ensure that freedom of some is not at the expense of slavery to others, must limit Liberty.- „freedom for the pike is death for the minnows‟
    14. 14. PREFERENCE, CHOICE AND SELF INTEREST
    15. 15. You choose what you prefer; you prefer whatyou choose, as it augments your selfinterest.
    16. 16. Preference - the act, fact, or principle ofgiving advantages to some over otherspriority in the right to demand and receivesatisfaction of an obligationChoice- the act of choosingSelf interest- defined as desires of man. Itis an evaluation of the facts of reality.
    17. 17. Situation: The basket contains multiples of both fruit. There are a number of people present. Most have the same preference as you. Since the number of mangoes is more than one you choose what you prefer, your self- interest being directly served as you pick the mango.
    18. 18. Or: There is only one mango and many people, but thehostess insists that you take the mango: here thevalue of the mango has not been tarnished by theprice of rudeness, you gladly pick the mango, youchoose what you prefer, and serve your self-interest
    19. 19. Or: If there are a number of people presentwith only one mango and the rest apples and youdon‟t know their preference, you still choosethe mango, as the elements of sympathy andcommitment cannot be introduced, due to lack ofinformation.
    20. 20. Or: If there is only one apple and one mangowith only two people remaining at the dinnerparty and both of you prefer the mango to theapple, the number of possible actions will be:
    21. 21. You take the mango- you choose what you prefer,directly serving your self-interest. You choose themango but it now has a decreased value. The otherperson might regard you as rude, greedy; you riskyour reputation by being seen as the fruit grabber.Your self-interest is served here, but only partiallyas you now pay a price of rudeness by choosing themango.
    22. 22. You don‟t choose the mango. You don‟t choosethe mango due to sympathy. You care about theother person and seeing his pleasure atattaining the mango makes you happy. Here whenyou don‟t choose what you prefer you stillserve your self-interest as the outcomeresults in augmenting your self-interest
    23. 23. You participate in a game concerning strategic nobility. Youpass the basket to you dinner partner, and hope that hisdecision is based on sympathy, that he will choose the lesspreferred fruit and pass on the mango to you. Here though youmay look gracious in passing on the basket without pickingthe fruit, in reality you can be seen as serving your self-interest by hoping that you will have the opportunity ofattaining the guilt free mango.
    24. 24. You forgo the mango and pass it on to your dinnerpartner as your reputation is of more consequencethan attaining the mango. Here again you areserving your self-interest by not choosing what youprefer, as it is important to you that you areviewed as a gracious and considerate person bysociety
    25. 25. Situation:A married man who is unhappy with his wife, and is inlove with other women does not indulge in an affair,even if having the guarantee that the wife will beunable to find out, is committed to his principles. Thisis self-sacrifice on his part where the action chosen isnot one, which he prefers and does not serve his self-interest.
    26. 26. Is there always a clear link between choice,preference and self- interest?
    27. 27. You may choose an action, which you don‟t prefer.Sometimes our choices can be mistaken due tomisinformation or expectations may prove to bewrong. We also make choices on principles and notfor gain as we may choose due to bindingcommitment, which may undermine our self-interest.
    28. 28. HAPPINESS
    29. 29. Jeremy Bentham- postulated „The greatest happiness for thegreatest number‟ principle as the aim of life.But Bentham and most subsequent moralphilosophers have reconciled themselves to thefact that measurement and interpersonalcomparisons of happiness between individualsis not achievable.
    30. 30. Richard Layard- declared that happiness can be measured- ask people how happy they are, and we then ask their friends and observers to authenticate the answers.- He claims people tell the truth in these surveys
    31. 31. Jeremy Bentham and William Stanley Jevons- believed that the human mind was inscrutable- it was perceived hard to imagine how one would numerically express units of happiness that were not accessible to any unit of measurement
    32. 32. THANK YOU FORLISTENING 

    ×