A free-market capitalist system holds that government regulation of the market

(intervention in the market) is justified only to prevent fraud or coercion; no other

government regulation (intervention) is justified.

Both Utilitarianism and Deontology will demand more than a free market capitalist system.

In other words both Utilitarianism and Deontology hold that

government should have more extensive regulation (intervention in the market) than

merely that needed to prevent fraud and coercion.

Ethics Case:

John Smith is a farmer who lives in South Texas. He owns a 60-acre orange grove (which is the average size for a small family farm of this type). Every season, John needs to hire laborers to help harvest the oranges. Each year John hires undocumented workers, most of who are from Mexico, to assist with the harvest. He pays these workers by the basket but finds that on average they are paid about 25% below the federal minimum wage. Furthermore, John knows that if he can even find enough American citizens willing to do the same work, he would have to pay them far above the minimum wage. For this reason, John continues to employ undocumented workers every season, despite the fact that it is illegal.

Notice that John has not engaged in any fraud or coercion when he employs undocumented workers. As long as John wishes to bring these foreign workers onto his land, and as long as the workers come willingly, no coercion is involved (John has not forced them.) Furthermore, as long as John actually pays the workers the wage he has offered them, no fraud has occurred. (John has not deceived them.) Therefore, this is a legitimate transaction according to free-market principles. In other words, if you endorse a free-market capitalist economic system, then you are committed to the view that the government should not prevent John from doing this. (And if the government currently has laws to the contrary, those laws are wrong and should be changed.)

1) Do you believe it is ethical for John to employ undocumented workers? Why or why not? (You should make reference to one or both ethical theories to justify your answer.) Utilitarianism and Deontology.

2) Do you believe a free-market capitalist economy is an ethical economic system? Why or why not?

3) Is your view about a free-market capitalist economic system consistent with your view about John's practice of hiring undocumented workers? (In other words, if you endorse a free market capitalist economic system, do you also endorse John's practice? OR, if you do not endorse a free market capitalist economic system, do you also not endorse John's practice?) If your views are not consistent, how do you explain and reconcile the discrepancy?