Inefficiency is Immoral

Economics in action

Economists argue for a higher level of efficiency in production and governance. However, in my view, this argument is not persuasive enough. Efficiency has to be an integral part of a desirable moral framework in modern society. Or inefficiency should become immoral.

This essay attempts to answer three questions. What is this `efficiency’ that should become part of a moral framework? Why should we integrate efficiency into a moral framework? How do we make inefficiency immoral?

Efficiency – Different dimensions

One should start with the issue of personal effectiveness.  This is arranging one’s own life in such a manner so that one can have the `best possible’ life. Here the `best’ is based on one’s own objective. For example, one can have `a best possible life’ with basic consumption and by devoting her life to enhance the welfare of other people. (We consider only those objectives that do not create…

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