Why are Economics and Ethics Rarely Paired Together?

Often in terms of our global exchange and distribution, money is used in a trickle down economy. With this, money is given to the rich and upper percent, and then is expected to be naturally distributed by them through donations and investments into the economy and the middle and lower classes. This idea believes that eventually economic equilibrium will be reached by providing those with access and opportunity more funds to have “trickle down”. This theory includes lowering the taxes of the elite whereas its contender of supply-side economics involves lowering taxes overall and decreasing regulation to stimulate growth. Like many, I see many problems with this ideology, however I do not see how its opposing theory, Keynesian or demand-side economics to be superior. With Keynesian economics, there is the expectation that giving money to those in the lower classes directly through government funding would inspire them to purchase goods and services that would not of before, this would stimulate the economy by adding more money into the circulation. However, many problems arise with this ideology since oftentimes those in the lower classes prefer to save their money and not spend all of what is provided to them.

The World Bank and other financial institutions coming out of the second world war, were formulated to deal with finances with a more humanitarian perspective. The funds were used for aid instead of corporate investment. I believe that international economic policies should continue being based on economic growth, however with more trends similar to the Marshall plan and the original incentives of these institutions. I do believe that the concept of continued economic growth is necessary to be the primary goal of international economics as it keeps policies on the upward trend to keep interest rates low by continuing trade, having an open market, promoting a cyclical rise in demand as well as output and employment to maintain expansionary policies.

However, I do believe that there should be greater regulations as to when economic growth should be morally or ethically suppressed due to the human rights issues impacted. For instance, countries like North Korea and Eritrea are leading with the world’s highest rates of modern day slavery with their population. Here, individuals are underpaid, overworked, and unable to battle for rights. Their work stimulates the economy by increasing production, GDP, employment, and trade, but it is at the expense of individuals rights and lives. These countries and many others can maintain this unethical labor source due to the consistency of consumption and economic growth from lowering prices. It is in these situations that I believe international economics should have a continued focus on growth in a morally and ethically sound way. With this increase of regulation and production monitoring, there would ideally be more imitation of the original incentives of the World Bank to provide aid on local levels to be distributed and create a cycle of growth within that economy. With there being more regulation, demand and supply would likely be impacted, in demand decreasing as prices rose and supply lowering with the requirement for a livable minimum wage. The economy would need to combat these changes by continuing to focus on fiscal and monetary changes that would keep the economy growing ethically.