Since when did a house become a tool for profit? Is it wrong for people who could not otherwise afford it to own their own home? The Great Recession was caused, in part, by a “house of cards” that was built by subprime home loans. But who was at fault and are there lessons for the future? This paper will attempt to address these questions in the context of what I have learned in the text Ethical Theory and Business (Arnold, Beauchamp, & Bowie, 2013).
“Capitalism is a system of social interaction which uses money as a medium of exchange for goods and services” (Roldan, 2010). Capitalism is rooted in the value gained from a transaction. Buying a home is one of the largest financial transactions a person can make in their life, and it arguably …show more content…
Freeman’s excerpt Managing for Stakeholders (Freeman, 2007): “Most people, most of the time, want to, actually do, and should accept responsibility for the effects of their actions on others” (p. 61). However, as the crisis unfolded, and in its aftermath, it became evident that some of the highest executives at the firms most responsible for the tumult did not adhere to this principle. In C. Johnson’s book Meeting the Ethical Challenges of Leadership – Casting Light or Shadow (Johnson, 2015), the term used is an abuse of privilege:
Abuse of privilege is particularly evident in the financial industry. U.S. banking executives received generous pay packages in 2007 even as the country entered the worst financial crisis since the Great Depression. Nine banks paid out an estimated $32 billion in bonuses at the same time they were being bailed out with $175 billion from the federal government … As the recession continues, Wall Street pay packages continue to be 5.5 times greater than the rest of the private sector. New York securities firms paid employees an estimated $20 billion in year-end cash compensation in 2011 (p. …show more content…
Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money” (Matthew 6:24). The desire for the security of a home does not substitute for our trust in the Lord and his provision. “Can any one of you by worrying add a single hour to your life?” (Matthew 6:27 NIV). As Christ said, “Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock” (Matthew 7: 24). That’s the house I want to live
“Capitalism is a system of social interaction which uses money as a medium of exchange for goods and services” (Roldan, 2010). Capitalism is rooted in the value gained from a transaction. Buying a home is one of the largest financial transactions a person can make in their life, and it arguably …show more content…
Freeman’s excerpt Managing for Stakeholders (Freeman, 2007): “Most people, most of the time, want to, actually do, and should accept responsibility for the effects of their actions on others” (p. 61). However, as the crisis unfolded, and in its aftermath, it became evident that some of the highest executives at the firms most responsible for the tumult did not adhere to this principle. In C. Johnson’s book Meeting the Ethical Challenges of Leadership – Casting Light or Shadow (Johnson, 2015), the term used is an abuse of privilege:
Abuse of privilege is particularly evident in the financial industry. U.S. banking executives received generous pay packages in 2007 even as the country entered the worst financial crisis since the Great Depression. Nine banks paid out an estimated $32 billion in bonuses at the same time they were being bailed out with $175 billion from the federal government … As the recession continues, Wall Street pay packages continue to be 5.5 times greater than the rest of the private sector. New York securities firms paid employees an estimated $20 billion in year-end cash compensation in 2011 (p. …show more content…
Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money” (Matthew 6:24). The desire for the security of a home does not substitute for our trust in the Lord and his provision. “Can any one of you by worrying add a single hour to your life?” (Matthew 6:27 NIV). As Christ said, “Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock” (Matthew 7: 24). That’s the house I want to live