great thinkers, great ideas

198 Economic Theory: An Introduction

economic freedom require laissez-fairel Must all economic

transactions be sanctioned—even drug dealing, pornogra­

phy, prostitution? Are there political and/or moral constraints

that may legitimately be placed on economic freedom?

5) Economic security—While there is a human need for free­

dom, the very concept of freedom implies some chance, thus

an infringement on security. To what ends may we go to

insure economic security? In the name of security should we

retard the progress which comes from risky experiments? Is

government the best means to insure security? Also, how are

provisions made for those who are chronically ill, disabled,

handicapped, aged or otherwise dependent? “Economic se­

curity” implies that somehow those who are unable to care for

themselves fully, will be provided with some help.

6) Equitable distribution of income— One of the elements of the

human condition is a seeking after justice. The question, of

course, is what is just and how do we achieve it? Does

equitable mean equal, or equal as a relationship of contribu­

tion to reward? If equality means each person receives the

same, does it require each contribute equally? Is equality of

condition ever possible? If each receives according to his

contribution, who determines the value of the differing types

of contribution? The goal is to promote prosperity and mini­

mize poverty among the population. How to and who can best

accomplish this is the question.

The goals stated above and the questions posed are properly
the subject of economic theory. Of course there are many more
questions than the few indicated here. We shall see that many of
the economic philosophers presented in the forthcoming chap­
ters pose more and different questions, all relevant to our
understanding of the importance of the world in which we live.
There are, in fact, three basic types of economic systems: the
command, the market, and the traditional. A command economy
is planned and directed by government authorities through a
central agency, and requires a large bureaucracy. The market
economy is a system in which most economic decisions are
made by individual buyers and sellers in the marketplace. The
traditional is a rudimentary economic system in which change
and growth proceed slowly; people do what their parents did