what are some virtues that are necessary for the people involved in a prosperus free market???

Question

How does virtues make an economic system more efficient????

Answer 1

Honesty, thrift, industriousness, and most of the virtues except generosity and compassion are necessary. Monitoring cost can be very high and wasteful if most people do not keep their agreements, and there is no capital if they do not save.

Answer 2

I think this is a 'trick' question. Adam Smith wrote that that the competitive market requires the least virtue, because competition would force business to have the best product for the least price. Business who wish to protect their reputation would not willingly decieve or have faulty products, because then they wouldn't sell.

And, at a minimum, property and contract law - if the fine was high enough - wold discourage fraud and the breaking of contracts.

So, you see, beyond this minimum, you don't need much virtue.

And, of course, this theory is completely absurd. Competition breeds selfishness, cruelty, neurosis, anti-social behavior and deception of all kinds. Reputation can be manufactured, deception and lies are the tools of the trade for business. Without civic minded people with good morals, a competitive free market economy would turn into the most demonic engine of destruction that could destroy the entire world. And according to the most recent news, we are nearly there.

Answer 3

Virtues are subject to opinion as to whether an attitude or action is virtuous...more interesting to ask the same question of morals......