The Relationship Between Free Market and Social Justice

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Social justice is concerned by many people in the society nowadays and people are longing for social justice. Some people argue that there would be social justice when the market was truly free. Therefore, the relationship between the free market and social justice will be discussed in this philosophical essay. To begin with, market is defined as a platform for buyers and sellers to exchange goods or services. A tangible or physical form of market is not a necessary requirement that a market can be in any form like online market or traditional retail marker. Both buyers and sellers can engage in exchanging goods or services with barter or money according to the market price. While a free market can be generally defined as a market is not interfered and restricted by the government. Everyone has the equal right to participate and trade in the market without any limitations (C.R. Sunstein, 1999). A free market is completely different from a command market that the market and production decision is solely determined by the government. In a free market, there are no tariffs, quotas, price floor, price celling and so on. The price of the trade is only determined by the market force which is composed of the demand of buyers and the supply of sellers. An equilibrium market price is reached when the demand is equal to the supply, any economic decisions will then be motivated by the market force naturally. Buyers and sellers will trade when the exchange is mutually beneficial guided by “invisible hand” of free market (Smith, n.d.). Furthermore, all resources are owned by private individuals and all of the economic decisions are also made by private individuals in the markets instead of the governments. Social justice is that all peo... ... middle of paper ... ...ces will be more efficient as the resources will be utilized by the people who value them the most. There will be less exploitation on the resources as people do not want to pay high cost for this. If the government distributed the resources, it was hard for the government to ensure fully utilization of resources and allocation of resource was justice. In conclusion, there is relationship between a truly free market and the social justice. A fully free market is difficult to exist and to be achieved in the actual society. However, theoretically, a free market can ensure people have equal rights to participate in the market and people will have fewer chances to be discriminated by others that they need to face the market punishment on their behaviors. The allocation of resources will be fairer under the free market system and social justice can be achieved somehow.

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