Economics, ethical principles, and the concept of value

Ulf Johanson and Emmanuel Aboagye

Chapter 6 in Pluralistic Economics, 2026, pp 68-86 from Edward Elgar Publishing

Abstract: Economic thinking has never been value-free. Across history, economists have promoted ideas and tools shaped by their underlying moral assumptions. Quesnay's physiocratic model moralized agricultural production and condemned profiteering intermediaries; and Adam Smith's defense of market liberalism rested on the belief that the “invisible hand” would align private interest with the public good without generating moral conflict. By contrast, Schmoller, in nineteenth-century Germany, argued that values should be expelled from business altogether, even as he justified the economist's task as creating order for the benefit of national leaders. These positions, despite their claims to neutrality, were grounded in normative visions of society, work, and human behavior. Such visions inevitably concern responsibility. While the “economic man” model describes decision-making, it remains silent on the decision-maker's moral obligations, even if moral action is closely related to the words value and valuable.

Keywords: Ethical principles; Utilitarianism; Moral blindness; Value added; Abstract money; Language games (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035393497
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