Economic Competition: Should we Care about the Losers? Essay

1035 Words Oct 26th, 2013 5 Pages
Economic Competition: Should We Care about the losers? Only if you’re doing it wrong

Jonathan Wolff is the head of philosophy at the University College of London. In one of his pieces titled, Economic Competition: Should We Care About The Losers, he particularly focuses on the economic wellbeing on individuals whom interests may be in danger within economic competition. After discussing several subcategories within economic play, Wolff believes that we have a moral obligation to help those that may be taken advantage of in the commercial world. These potential “losers”, he states, fluctuates between producers and consumers. Within his description, Wolff clarifies that exploitation is a direct consequence of economic competition. “
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Even within monopolies, their economies of scale allow for their consumer surplus deadweight loss to be looped back into the economy because of how they choose to invest their large profits. For example, investing in research and development can therefore, I believe, compensate for exploitation. Other monopolistic businesses can be controlled and exploitation can be minimalized via tighter government policy and anti-trust acts.

Therefore, a financial safety net would not be necessary. If the government sets up stronger methods of controlling businesses and encourages employees to participate in their contractual rights, then there is no moral obligation to compensate for the losers. One way to see this is how we function as autonomous individuals. We are willing and able to go to the supermarket and purchase groceries, or buy a new set of golf clubs to match those new accessories bought. Because of the job one has, they are able to produce income. With income, the person is able to freely choose what to spend their money on. Therefore autonomy is a direct derivative from income. Wolff argues that even if businesses are highly regulated, they will just become a part of a larger monopolistic scheme within the economy (608). But as I previously mentioned, monopolies have the capacity to not only give back to the community, but its lack of allocative efficiency can be curbed by government regulation. Anti-trust acts like the

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