The Relationship between Economics and Ethics Literature review

The Relationship between Economics and Ethics - Literature review Example This paper illustrates that ethics resolves the question regarding concepts of human morality which may include justice, good, evil as well as right and wrong among others. Economics, on the other hand, is a social science. It is concerned with economic activities in order to understand the processes that influence production, distribution as well as consumption of goods and services within an economy. It emphasizes on the interactions and behavior of economic agents and how the economy works. The relationships between economics and ethics have an antecedent that can be traced back to the time of Aristotle whose understanding of economics was that it was a practical philosophy of ethics and politics. As such, economics involved skills that are oriented towards wealth creation and politics considered the art usable in this since it will determine what is done to bring about human happiness, ethics. The relationship between ethics and economics can be understood in the context of welfa re theory and social choice. The argument on the good and its subsequent achievement gives the link between ethics and economics. Fundamental elements that link the two are the theorems of value and choice. Theory of value concerns what is good, while the theory of choice is the principal determinant of how that good is come by. That is to imply, the choice of the actions to be taken to achieve the intended objective. According to Teulon, in imposing tax policies, the effect of it is felt both by the citizenry and the government. The government intends to generate more revenue and thus wealth. However, the choices made with regards to how the policy is implemented (the means to the end) will determine the good felt by the people and is thus ethics. Standard economics theory, therefore, will give the manner in which preferences are ordered and their subsequent ends. It, as a result, provides the rational choice that characterizes the government actions. This consequently provides a v aluation framework and how to achieve what is valued, the revenue.