Economics Environment & Ethics

1. 9/17/2021 Dr. Raksha Singh
EE& E
Invisible Hand & Malthusian Trap
Dr Raksha Singh
Principal
Shri Shankaracharya Mahavidyalaya
NAAC Reaccredited “A “Grade (CGPA 3.10)
Bhilai ,Chhattisgarh. Ph no. 9826231391
rakshasingh2086@gmail.com

2. REFRESHER COURSE
 https://docs.google.com/forms/d/e/1FAIpQLScnuOmNWyT4J1FmgZJvr
vUyKT7HbmTeJ-iPwVzg0bXCSE-tMg/viewform
9/17/2021 Dr. Raksha Singh
Raksha Singh

3. Your World Your Turn
 Discuss (Question 1)
 Today ( as on 14 Sept2021) World is facing -----situation because of what ??
9/17/2021 Dr. Raksha Singh
Raksha Singh

4. Question 2
How many of you give tip in
Restaurant?
WHY
WHY NOT
9/17/2021 Dr. Raksha Singh
Raksha Singh

5. Discuss
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Raksha Singh

6. Concept of EEE
 Robbins Definition: Allocation of
Resources…
 Economies rely on ecosystem of
goods and services.
 Earth’s ecological systems purify air
and water, form soil, cycle nutrients,
regulate climate, pollinate plants, and
recycle the waste generated by our
economic activity. Such essential
services are called ecosystem
services.
9/17/2021 Dr. Raksha Singh
If EEE not handled
properly. Then….
Raksha Singh

7. Explanation 1
 We are facing bad situation because of ignoring
fundamental relationship between Economics
Environment and Ethics
 Environment provides
 Resources to the Economy
 Environment Acts like Sink (garbage bag) for waste and
emissions
 Anyone who casually dismisses the idea that there is a limit to
how many people Earth can support should be given a Petri
dish with a swab of bacteria. Watch as the colony grows until it
consumes all of the available nutrients or is poisoned by its own
waste.
9/17/2021 Dr. Raksha Singh
Raksha Singh

8. Explanation 2
 Ethical beliefs and practices constitute a vast and unseen institutional
force.
 A famous example is the generous tip that a satisfied traveler leaves at
a highway restaurant
 An eatery to which she never intends to return. Why would anyone
leave a tip in this case—when there is no expectation of future
economic return?
 The typical diner says it is customary or traditional to show generosity
for good service and giving a tip is simply the “right thing to do.”
 Economic actors may leave a gratuity because they are altruistic; or, diners
may not want to incur the social stigma of not tipping; or, they may believe
that they have a duty to act in certain ways; or, they self consciously act in
ways thought to be virtuous.
9/17/2021 Dr. Raksha Singh
Raksha Singh

9. Economist’s toolkit?
Why should moral inquiry be a part
of the
 Commerce
 Management
 or Economist Toolkit
9/17/2021 Dr. Raksha Singh
Raksha Singh

10. If Not Economist’s toolkit?
 The flood that swept through the Kedarnath of
Uttarakhand on June 2013 killed thousands. According to
the researchers the key cause was global warming. They
concluded that melting glaciers and shifting storms may
cause more catastrophic floods in mountainous regions of
India. It was great ecological damage, loss of human beings
and socio economic setup of human life in Kedarnath.
9/17/2021 Dr. Raksha Singh
After
Before
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11. Question?
 The environmental sciences have documented large and
worrisome changes in earth systems
 From climate change and loss of biodiversity, to changes in
hydrological and nutrient cycles and depletion of natural
resources
 These global environmental changes have potentially large
negative consequences for future human well-being, and raise
questions about whether global civilization is on a sustainable
path or is “consuming too much” by depleting vital natural
capital?
9/17/2021 Dr. Raksha Singh
Raksha Singh

12. Definition
 Adam Smith defined economics as “an inquiry into the
nature and causes of the wealth of nations.”
 Alfred Marshall Economics is the study of human activities
in the ordinary course of business. It studies how man
attains his income and how he utilizes it. In this way, it
studies wealth, on one hand, and on the other hand, it is a
part of the study of man, which is more important.
 According to Robbins,“Economics is the science which
studies human behaviour as a relationship between ends
and scarce means which have alternative uses
9/17/2021 Dr. Raksha Singh
Raksha Singh

13. Are we in Malthusian Trap?
 Malthusianism idea is that population growth is potentially
exponential while the growth of the food supply or
other resources is linear
 Which eventually reduces living standards to the point of triggering
a population die off . This event, called a Malthusian catastrophe (also
known as a Malthusian trap, population trap, Malthusian
check, Malthusian crisis, Malthusian spectre, or Malthusian crunch)
 This happen when population growth outpaces agricultural
production , causing famine or war, resulting in poverty and
depopulation
9/17/2021 Dr. Raksha Singh
Raksha Singh
Raksha Singh

14. Conclusion
 The answer is simple:
 The subject matter of economics involves individuals making
decisions within a social environment.
 Even the “greatest ruffian, the most hardened violator of the
laws of society” is not altogether without social feelings, as
noted by Adam Smith, the founder of economics.
 Choices in economics are often framed by social relations and
governed by different types of ethical norms and viewpoints.
 Smith also wrote in The Wealth of Nations (1776) about the invisible
hand of the market; few realize that trust and ethical norms—derived
from moral sentiments—were essential components for making trade
work without the heavy hand of government.
9/17/2021 Dr. Raksha Singh
Raksha Singh
Raksha Singh

15. Adam Smith’s
Invisible hand
 It referred to the indirect or unintended
benefits for society that result from the
operations of a free market economy
 Invisible hand terminology used by him twice.
 1759
 1776
9/17/2021 Dr. Raksha Singh
Raksha Singh

16. Invisible hand
 Smith went on to argue that the intentional intervention of
government regulation, although it is specifically intended
to protect or benefit society as a whole,
 In practice is usually less effective for achieving that end
than a freely operating market economy.
 In many cases, it is harmful to the people as a whole by
denying them the benefits of an unencumbered
marketplace.
 Whether the invisible hand of free-market "goodwill" exists
or is at all effective is hotly debated. It is, however, difficult
to deny that Smith's market philosophy helped create the
most successful economy in history.
9/17/2021 Dr. Raksha Singh
https://www.youtube.com/watch?v=ulyV
Xa-u4wE
Raksha Singh
Raksha Singh

17. Mother Earth
 Today overconsumption is measured against
Earth’s carrying capacity.
 William Rees and Mathis Wackernagel developed the
related concept of the ecological footprint . It’s an
indicator of the ecological impacts of everyday
activities and practices.
 Ecological footprints are useful ways for
industries, governments and people to assess which
practices we need to reduce to keep within the limits
of Earth’s regenerative capacity.
9/17/2021 Dr. Raksha Singh
Raksha Singh

18. Measuring Progress GDP Vs GPI
 It is now widely recognized that GDP – the monetary value of all
goods and services produced in an economy – is a deeply
flawed measure of progress.
 GDP can be growing while our environment is being degraded,
inequality is worsening, and social well-being is stagnant or falling.
 Poor Environmental quality affects Economic Growth
 Majorly it affects wellbeing
1. Lowering the quantity and quality of resources
2. Badly impacting the health issues
 Better indicators of progress include the Genuine Progress
Indicator (GPI), which accounts for a wide range of social,
economic and environmental factors.
9/17/2021 Dr. Raksha Singh
Raksha Singh

19. Present And Past
Present
 In todays Scenario Economics
means how to take care of
financial matters to take care
of ourselves
 Our Ethics totally shattered
coz, we hardly question
ourselves that what is good or
bad but we concern about
what we will get
Past
Economics means taking Care of
Home(managing household)
Adam Smith founder of Classical
Economics proposed an “invisible hand.”
1. Economics shares a common
intellectual heritage with ethics
2. Smith felt that the marketplace will
behave as if guided by―an invisible hand
that leads their actions to benefit society
as a whole.
9/17/2021 Dr. Raksha Singh
Raksha Singh

20. Our Side
DUTY
 To survive we are using Natural resources
 So our duty is to take care of Mother Earth
 Environment means Understanding Home
 Economics means taking Care of Home
FAULT
 In modern times these two areas of human thought
separated and ethical implications of each totally lost
 In the rising tide of one-sided individualism and self centeredness
9/17/2021 Dr. Raksha Singh
Ethics
Environment Economics
Raksha Singh
Raksha Singh

21. Case Study I
 There are at least 90 cancer patients for every
100,000 population in Punjab. Cancer incidence in
the state is higher than the national average of 80
per 100,000 population, reveals a survey by the
Punjab government. The survey results were
released on January 28, 2013.
 Punjab battles uranium curse
 Punjab is the only state to have uranium in its
water
 The level of uranium in the ground water is 50
percent over the WHO norms
Groundwater contaminated
9/17/2021 Dr. Raksha Singh
Raksha Singh

22. Reason..
 Several hypotheses have emerged
attributing the presence of
unusually high amount
of uranium in the state, especially
in the fertile Malwa region:
 To the fallout of the Gulf War,
industrial effluents, water percolating
through fly ash dumps of thermal
power station, excess application of
phosphate-based fertilisers and ...15-
Jul-2018
9/17/2021 Dr. Raksha Singh
Raksha Singh

23. Consequences
 The high incidence of cancer and other diseases in Punjab’s
Malwa belt has been highlighted over the last decade.
 The effect of all this can be seen in the growing number of
patients in the Malwa belt with cancer and other diseases
and children being born with abnormalities
 In fact, a train that connects Bathinda with Bikaner in
neighboring Rajasthan is known as the ‘Cancer Express’ as
it ferries a large number of cancer patients from Punjab to
Bikaner for treatment at a cancer hospital.
9/17/2021 Dr. Raksha Singh

24. SOLUTION
 The Punjab government has sought technical help
from the Bhabha Atomic Research Centre (BARC)
to tackle the growing problem of uranium in
groundwater.
 https://www.youtube.com/watch?v=BBXMCr7VmcI
9/17/2021 Dr. Raksha Singh

25. What to do ????
 Several efforts by economists and others to
develop criteria of “sustainability” with respect to
both particular resources and the whole economic
system.
 These are meant to provide ethical guidance
concerning appropriate behavior where resource
depletion or environmental degradation threatens
to reduce the welfare of future generations
9/17/2021 Dr. Raksha Singh
Raksha Singh

26. Cap resources and energy
 Environmental impact is driven by demand for resources and energy. It
is now clear that the planet cannot possibly support current or bigger
populations if developing nations used the same amount of resources
and energy as developed nations.
 Demand can be reduced through efficiency gains (doing more with
less), but these gains tend to be reinvested in more growth and
consumption , rather than reducing impacts.
 A post-growth economy would therefore need diminishing “resource
caps” to achieve sustainability. These would aim to limit a nation’s
consumption to a “fair share” of available resources. This in turn would
stimulate efficiency, technological innovation and recycling, thereby
minimising waste.
9/17/2021 Dr. Raksha Singh

27. Expectations
 From Youth
 Roko Toko………
9/17/2021 Dr. Raksha Singh

28. References
 http://www.ajhtl.com/uploads/7/1/6/3/7163688/article_56_vol_3_1_2014.pdfhttps://
www.pnas.org/content/116/12/5233
 https://www.econlib.org/library/Enc/EthicsandEconomics.html#:~:text=Ethics%20studie
s%20values%20and%20virtues,the%20good%20or%20act%20rightly.&text=Ethical%20is
sues%20connect%20intimately%20with,doing%20a%20cost%2Dbenefit%20analysis
 http://hrlibrary.umn.edu/edumat/sustecon/lessons/lesson1.html
 https://www.thehindu.com/sci-tech/health/medicine-and-research/groundwater-
contaminated-punjab-battles-uranium-curse/article3635131.ece
 https://www.bisd303.org/cms/lib3/WA01001636/Centricity/Domain/614/Ch06%20Read
ing%20Guide-Answers.pdf
9/17/2021 Dr. Raksha Singh

29. Thank You
9/17/2021 Dr. Raksha Singh
 https://www.youtube.com/watch?v=gXv8KN3JtJs&list=TLPQMDMx
MjIwMjDWwvSTEx1ksg&index=4
 https://www.youtube.com/watch?v=2cibM0oywiU
 https://www.youtube.com/watch?v=4yEmcXkJ8Tk
 https://www.youtube.com/watch?v=BBXMCr7VmcI
 http://hrlibrary.umn.edu/edumat/sustecon/lessons/lesson1.html
 https://www.slideshare.net/ssmvjunwani/concept-of-economics-
231968627