Market Participation, Self-Respect, and Risk Tolerance

Abstract

Abstract: How important is the experience of risk in business endeavors for self-respect and moral development? Tomasi (2012) prompts this question with his attempt to reconcile Rawls’s (1971) 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.

Keywords: Economic Liberty, Democratic Citizenship, Risk, Uncertainty, Cooperation, Distributive Justice

JEL Classification: P16, J58