The Relationship between Morality, Economy, and Social Welfare

The relationship between ethics and economy is one of the issues examined in contemporary human sciences. On one hand, some thinkers believe that economy and ethics should be segregated, emphasizing that since economy seeks to improve the quality of life and eradicating privations, it is a moral issue guided by the invisible hand of the market. On the other hand, some other thinkers emphasize on the negative consequences of economic policies and believe that governments’ interventions are essential for moralizing economy and that development of welfare states and welfare policies is analyzed accordingly. There are different theories of ethics any of which has stressed on different elements such as individual action, individual essence, and legal laws and arrangements, to explain the relationship between ethics and economy. Using social welfare as a construct in analysis, the present paper aims at explaining the relationship between ethics and economy based on an inter-subjective approach.