How to Teach the Ethical Foundations of Economics

Teaching the ethical foundations of economics will give you much scope for discussion in class.

The Ethical Foundations of Economics is a theory which states that economics should not be taught separately from ethics. Since both interact, particularly in the modern world, with companies being boycotted based on anti-ethical actions, the two are intertwined. Studying ethical economics is a valuable activity for high school-aged students since it gives them an insight into the world of both economics and of ethics. Making the classes interactive will give the students scope for debate and discussion, which will facilitate their learning.

Instructions

1. Ask the students what they think economics is the study of. Many will say money, some may say markets. Explain to them that since there is a human element in economics, there must also be an ethical element in it, since humans are ethical creatures. If someone finds a wallet on the floor, they can spend the money or they can return it. Since many wallets are returned, economics is not just the study of the acquisition of money, but of humans' relationship with money.

2. Give the students examples of the rise in ethical economics. Ask them what chocolate, coffee or shampoo they buy. The brands they choose will usually be members of the Rainforest Alliance or will be fair trade or animal-friendly. Often these brands are more expensive than their non-ethical rivals, and yet they are the leaders in the market. Understanding ethics is therefore vital to understanding economics.

3. Explain the three different ethical economic theories. The outcomes-based theory says that the best course of action is the one which has the best consequence. The duty-based theory sets a series of ethical rules, and the virtue-based theory claims that universal human rights and values should compel us to act. Ask the students which theory they feel is strongest, and have them discuss the merits and weaknesses of each.

4. Explain to students that ethics is not as easy as it sounds by giving them hypothetical problems. For example, a poor farmer in the U.S. may want the government to tax foreign imports on grain to protect his livelihood, whereas a Brazilian farmer may make his money by selling to the U.S. market. Ask the students which of these farmers is more deserving of support and whether introducing import taxes is the solution.

References

• University of Richmond: Teaching the ethical foundations of economics
• Colorado Council for Economic Education: Teaching the Ethical Foundations of Economics workshop