Market Participation, Self-respect, and Risk Tolerance

Abstract

How important is the experience of risk in business endeavors for self-respect and moral development? Tomasi prompts this question with his attempt to reconcile Rawls’s theory of justice as fairness with free-market capitalism, by claiming that economic activity is a way for people to exercise their autonomy, responsibility, and self-authorship, including through voluntary risk-taking. Critics argue that the social environment generated through market institutions is ill-suited for developing a sense of responsibility and autonomy among citizens. We refine the case for economic liberty by looking at the link between risk-taking and attitudes toward democratic citizenship. We highlight the critical role of ethical business practice as a contributor to the stability of liberal-democratic societies.

The Ethics of Entrepreneurship: A Millian Approach

“…Yet, I suggest that the aim of exposing others to one's conception of the good becomes a key requirement in the context of entrepreneurial experiments in living. The reason is that market exchanges and entrepreneurial ventures are by nature social and largely cooperative enterprises (Cordasco & Cowen, 2023), by which I mean that we cannot think of any meaningful entrepreneurial venture that does not involve aiming at exposing others to it (whether customers, workers, or other stakeholders).…”

“… See Dow (2003).2 See, for instance,Basadur (2011).3 SeeSchwalbe (1985).4 See, for instance,Bloom et al (2015).5 See, for instance,Cowen (2021),Cordasco and Cowen (2023) and Tomasi (2012).6 See, for instance,Cowan and Rizzo (1995),Goodpaster (1991),Heath (2006) andVogel (1991).…”