Q.

5: Discuss the role of Economic justice in light of

Capitalism with examples.

Economic Justice
Economic justice is a component of social justice. It is a set of moral principles for building economic
institutions, the ultimate goal of which is to create an opportunity for each person to create a sufficient
material foundation upon which to have a dignified, productive, and creative life.

Capitalism
Capitalism is an economic system in which the means of production and distribution are privately or
corporately owned. Operations are funded by profits, and not controlled by a state government.

Individual rights rule the capitalistic ideal and implementation. Private individuals, small businesses,
organizations, and corporations make independent decisions about prices, production, and distribution
of goods, ideally resulting in a self-regulating market.

Understanding Economic Justice

The concept of economic justice intersects with the idea of overall economic prosperity. There is a belief
that creating more opportunities for all members of society to earn viable wages will contribute to
sustained economic growth. When more citizens are able to provide for themselves and maintain stable
discretionary income, they are more likely to spend their earnings on goods, which in turn drives
demand in the economy.

Achieving economic justice can include addressing wage gaps and other deficiencies in individual
earnings. For instance, there may be members of the workforce employed in jobs that do not make full
use of their skills. This typically leads to workers earning wages that do not reflect the full potential of
their professional abilities. As a result they do not earn the highest income of which they are capable.

Such a loss of possible wages creates an inefficiency in the economy because those workers will not
have the income to participate to their fullest in it. If this inefficiency reaches significant magnitude—
wherein large portions of the population are not purchasing goods and services they might have
otherwise spent their earnings on—it can slow the economy.