Given the overwhelming advantages of the free-market system for those seeking to overcome poverty, one might wonder why those who are concerned about poverty do not all hasten to become staunch advocates of the free market in its purest form. There appear to be two main reasons why many do not do so:

  1. They lack a proper understanding of the workings of the market or of praxeological principles in general. Section 4 of this course attempts to address this shortcoming.

  2. Many of them embrace a creed of economic egalitarianism, which often seems to override any benevolent concern for the welfare of the "needy." This egalitarian tendency is often expressed in such statements as: "Although capitalism is effective in creating wealth, it also increases the gap between the haves and the have-nots." This argument pertains not to economics or praxeology, but to ethics. It upholds economic "equality" as an ethical end, which may in some cases be regarded as taking precedence over the welfare of particular human beings, including even those who are impoverished.

What are the implications of the view that "economic equality" (as opposed to mere improvements in the living standards of poorer persons) is an ethical end in itself?      Next page
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