Market justice in pricing of the goods

The Distributive Justice of the Market

I concur with Adam Smith’s assertion in his inquiry into the causes and nature of the wealth of nations. He supported the idea of a free economy where the market’s invisible hand should be permitted to establish prices. He therefore steadfastly opposed the interventions made by governments in the market. This relates with the article’s opinion on venture capitalists. They combine human and natural resources in innovative ways. Their actions stem from their experiences of shortcomings with current services and products. Being risk takers, they look into the future and apply the necessary policies to avoid setbacks. For the hazards and efforts, the venture capitalists presume that these items should not be subjected to control measures by governments (Smith, 2010).

I agree with Smith’s assertion that government’s interventions in the market results to inefficiencies since players in the market are greatly discouraged from operating in the market. The article’s opinion on the USA social mobility confirms this due to government legislations because it is now becoming difficult for children to outdo their parents in business. However, he opines that the government is mandated to perform three specific roles. These include protecting a society from attacks by other nations, protecting its members from violence by irate citizens as, welling as erecting and maintaining a number of institutions and public works. Unfortunately, the US government has not provided institutions that can make opportunity to be evenly distributed amongst the poor so that the have-nots in the USA do not have a chance of making it (Karl Marx, 2009).

Despite my concurrence with Smith’s assertions, I do not agree with the fact that for their novel ideas, entrepreneurs should be compensated with executive ownership. This is because patents lead to monopoly where the poor are exploited and the status quo is maintained at the behest of poor suffering workers. In this regard, I agree with Karl Max’s opinion that exploited workers differently experience market experience. This is illustrated in the article by the outcry of members of the public against corporate executives pay and compensation which had been made worse by disclosures on their under hand dealings concerning outright fraud and insider trading. While the exploited workers remained in squalor, members of the executive fed on their sweat and even stole from them (Karl Marx, 2009).

While I agree with Karl Max’s opinion that buying and selling are determined by freedom where sellers and buyers are a product of freewill as exemplified in contracts, I do not agree with his assertion that Property. This is because the assertion provides that individuals can only dispose what is owned by them and this determines buying and selling. This is not practical because in today’s world, companies obtain free novel ideas from their worker. They go ahead, patent these ideas, and make huge profits at the expense of their exploited workers. This mirrors Karl max Bentham assertion where every individual involved in business propagate his/her own selfish agenda (Karl Marx, 2009).

Karl Max believes in equality where individuals strike an agreement to buy and sell in exchange for items that have an equal value as a determinant for buying and selling. However, this does not happen in the real world. When workers invent novel ideas, these are patented by corporate organizations and they get nothing from them. Rational corporate leaders as outlined in the article should advance ‘Locks proviso’. This implies that if companies have to patent their exclusive ownership to novel ideas discovered by their workers, they should ensure that they adequately compensate the inventors. However, today’s world dictates that society should compensate entrepreneurs with patents and monopoly for investing their capital in industries where these novel ideas are invented. Whichever way this is perceived there is still no equality (Smith, 2010).






Karl Marx. (2009). Capital: A Critique of Political Economy, vol. 1, trans. Samuel Moore and Edward Aveling. New York: Modem Library.

Smith, Adam (2010). An Inquiry into the Nature and Causes of the Wealth of Nations. University Of Chicago Press.




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