Fairness

 Comes to how we expect to be treated and how others expect us to treat them.
 It should be the standard for addressing the siruations.
 It is concerned with actions, processes and consequences that are MORALLY RIGHT,
HONORABLE & EQUITABLE.

Difference between fairness and justice

Fairness is dealing with the behavior of individuals and everyday interpersonal relationship
while Justice and Equity context is broader social issues and institutional obligations to
individual.
(In short fairness is paghingi ng pagkapantay pantay sa mga nakakasalumuha mo ex: Humihingi ka ng fair
na trato ng parents mo sayo at sa kapatid mo. Pag justice ex: fair na salary income para sa mga minimum
wage earners.)

Two Aspects of Fairness

1. Fair Result ( substantive fairness)
Ex: means there is a fair or valid reason for the employer to dismiss an employee.
2. Fair Procedures (procedural fairness) dispute resolution concept which provides an
employee a fair process in resolving disputes. The concept requires transparency, equal
communication and fairness in allocation of resources used to resolve the dispute.

Principles of Fairness
1. Treat all people equitably

2. Make all decision appropriate criteria, without undue favoritism or improper prejudice
3. Never punish people for what they did not do.
4.Promptly and voluntary correct personal and institutional mistakes and improperties
5. Not take advantage of people's mistake and ignorance
6. Fully consider rights, interests and perspective of all, Approach judgement w/ open minded
and impartiality.
Capitalism ( Free Market, Free Enterprise economy, Economic
system)
- Economic system where private entities own the factors of production.

4 factors
1. Entrepreneurship
2. Capital Goods
3. Natural resources
4. Entrepreneurship excercise controlled through companies.

1. A Two-Class System
Historically, a capitalist society was characterized by the split between two classes of individuals—the
capitalist class, which owns the means for producing and distributing goods (the owners) and
the working class, who sell their labor to the capitalist class in exchange for wages. The economy is run
by the individuals (or corporations) who own and operate companies and make decisions as to the use
of resources. But there exists a “division of labor” which allows for specialization, typically occurring
through education and training, further breaking down the two class system into sub-classes (e.g., the
middle class).
(Ex: FACTORY OWNER - FACTORY WORKER.)

2. Profit Motive
Companies exist to make a profit. The motive for all companies is to make and sell goods and services
only for profits. Companies do not exist solely to satisfy people's needs. Even though some goods or
services may satisfy needs, they will only be available if the people have the resources to pay for them.
(Good example dito is Fast food chains, kasi diba they offer food and services, but do they care sa health
ng individual sa mga foods nila? Pinaguukulan ba ng pansin ang nutritional values? And the price pang
masa ba?)

3. Minimal Government Intervention

Capitalist societies believe markets should be left alone to operate without government intervention.
However, a completely government-free capitalist society exists in theory, only. Even in the United
States, the poster child for capitalism, the government regulates certain industries, such as the Dodd-
Frank Act for financial institutions. By contrast, a purely capitalist society would allow the markets to set
prices based on demand and supply for the purpose of making profits.

4. Competition
True capitalism needs a competitive market. Without competition, monopolies exist, and instead of the
market setting the prices, the seller is the price setter, which is against the conditions of capitalism.
5. Willingness to Change
The last characteristic of capitalism is the ability to adapt and change. Technology has been a game
changer in every society, and the willingness to allow change and adaptability of societies to improve
inefficiencies within economic structures is a true characteristic of capitalism.

The Bottom Line

Capitalism in its purest form is a society in which the market sets prices for the sole purpose of profits
and any inefficiency or intervention that reduces profit making will be eliminated by the market.

Advantages of Capitalism
1. Competition
A common characteristic of capitalism is that consumers often get the best products at the best prices.
Consumers are willing to pay for the best products and businesses will want to maximize their profits.
2. Innovation
A capitalist society encourages and rewards innovative individuals and companies. This is an important
factor for the growth of the economy. It forces efficiency and increases competition.
3. Political Freedom
If the government controls all the factors of production and sets the prices, then it creates a mighty
central government that is often involved in all aspect’s of the citizen’s life. There is less political
freedom in a communist state to keep the center so powerful.

Disadvantages of Capitalism
1. Marginalization
In a highly competitive and completely capitalist economy, there would be no place for the elderly,
children, and the disabled who would presumably not have any skills. Private companies would not be
incentivized to provide services for them if they didn’t have any money. A capitalist economy will
under-provide goods with positive externalities, such as health, public transport, and education.
2. Externalities
Capitalism ignores negative externalities, such as pollution and damage to health. While this makes
products cheaper and in the short run, over time the country or society has to bear the cost. For
example, a mining company will strip the land of its resources, dump toxic water and pollute the air.
They have no incentive to do the opposite since that costs money. However, all the activities have a
critical impact on the local ecology, community, and inevitably the environment as a while.
3. Monopoly power Private ownership of the factors of production enables companies to gain
monopoly power. These private companies with monopoly power can exploit their position to charge
higher prices. Monopoly power also discourages companies to be innovative
PRINCIPLES/ CHARACTERISTICS. OF SOCIALISM
Some of the principles of socialism include:
Public Ownership
This is the core tenet of socialism. In a socialist economy, the means of production and distribution are
owned, controlled and regulated by the public, either through the state or through cooperatives.
The basic motive is not to use the means of production for profit, but rather for the interest of social
welfare.
Economic Planning
Unlike in a capitalist economy, a socialist economy is not driven by the laws of supply and demand.
Instead, all economic activities – production, distribution, exchange and consumption – are planned and
coordinated by a central planning authority, which is usually the government.
A socialist economy relies on the central planning authority for distribution of wealth, instead of relying
on market forces.
Egalitarian Society
Socialism rose as an opposition to the economic inequality brought about by early capitalism. As such, it
aims for an egalitarian society where there are no classes. Ideally, all the people within a socialist
economy should have economic equality.
Provision of Basic Needs
In a socialist economy, the basic needs – food, shelter, clothing, education, health and employment –
are provided by the government without any discrimination. This is one of the greatest advantages of
socialism.
Provision of basic needs by the government can, however, result in the masses thinking that they cannot
survive without the government, creating a perfect environment for the rise of authoritarian
governments.

No Competition
Typically, when you want to buy a car, you are spoilt for choice. There are different brands and different
models with varying features and prices.
It’s up to you to choose one the best one for you. The same applies for many other products.
In a socialist economy, there is no competition in the market since the state is the sole entrepreneur.
The state only focuses on provision of necessities, which results in limited consumer choice.
Price Control
You might be wondering how prices are regulated in an economy without any market competition. In
socialist economies, the prices of products are controlled and regulated by the state.
The states sets both the market price for consumer goods and the accounting price which helps
managers make decisions about productions of goods.

Social Welfare
Another major reason behind the rise of socialism was to protect the working class from exploitation.
Under socialist systems, there is no exploitation.
The state takes care of the working class through employment protection, minimum wages and trade
union recognition rights

Advantages of Socialism
Greater Efficiency
Economic efficiency under socialism is greater than under capitalism, the means of production are not
left in the market forces rather they are controlled and regulated by the central planning
authority towards chosen end. The central planning authority makes an exhaustive survey of resources
and utilizes them in the most efficient manner.
Greater Welfare
In a social economy, there is less inequality of income as compared to capitalist economy because of the
absence of private ownership of means of production. In socialist economic system every one works
hard and paid as per his skills & ability.
Absence of monopolistic practices
One of the benefits of socialism is that it is free from monopolistic practices to be found in a capitalist
society. Since under socialism all means of production are owned by the state, the exploitations by the
monopolist are absent. Instead of private monopoly, there is state monopoly over the productive
system but this is operated for the welfare of the people.
Absence of business fluctuations
A socialist economy is also superior to a capitalist economy that is free from business fluctuation.
Generally planned economy co-ordinates the action of various producing units, prevents discrimination
between saving and investment and make full use of available resources. It is able to control over
production and avoid general deflationary trend.
Economic Growth
will consider economic growth as an important advantage of socialism because it adopts economic
planning as a means of promoting rapid economic growth. A planned socialist economy functions right
according to the plan in a systematic and orderly manners and marches rapidly on the road to economic
progress.
Disadvantages of Socialism
Elimination of Individualism
There are many disadvantages of socialism but first come in my mind is the lack of economic freedom. In
socialist economic system everything is controlled by a centralized body. Individuals are not allowed to
own any assets, everything belongs to the state. Workers are assigned specific jobs and are not allowed
to change them without consent from the planning authority.
Red-Tapism and Inefficiency
In socialism there is a lot of involvement of bureaucracy and are the drivers of all economic machinery.
The work civil servants are not comparable with the private entrepreneurs. Civil servants merely do the
jobs because it is their duty and they will get paid whatever the consequences. Thus inefficiency arises
and in the long run the economy suffers.
An Artificial System
As a socialist economy is a planned economy, every aspect of the economy is to be determined by the
government. Forces of demand and supply do not apply which is one of the disadvantages of socialism.
Thus in the long run the economy becomes state rather than wasted, whereas these make an economy
prosper.
Consumers Suffer
In the final analysis it is the consumer who loses out. Sovereignty of consumer does not apply in a
socialist economy. Consumers do not enjoy the status of a consumer as in a capitalist economy. Choices
of goods and services are able to maximize their total satisfaction.
Economic Equality
Socialists claim more equal distribution of wealth but practically it is proven that complete economic
equality is virtually impossible. There is a distinction between the rich and poor. Moreover since it is a
planned economy the poor suffer even more.
Non-existence of economic and political freedom
Freedom of enterprise, freedom in choice of occupation and many other essential freedoms for an
economy to prosper are out‑rooted from society. The true spirit of democracy dies away. The basic
needs Although it has been agreed that the six basic needs in life are met within a socialist economy but
all this is obtained at the expense of economic and political freedom.
Non-existence of Competition
It is due to competition that an economy becomes prosperous. The competition between producers and
consumers leads to the production of a good quality product which may even be relatively cheap here it
is one the disadvantages of socialism. Thus talents and initiatives of mankind develop and in the
ultimate analysis the country incurs rapid growth