Answer to Question #85264 in Macroeconomics for Molly

Question

Some observers maintain that the economic goals of the American people are impractical, achievable, and inconsistent. They argue, for example, that economic efficiency and economic justice are frequently in conflict with each other. Explain, with examples to back up your point of view, why you agree or disagree with this statement.

Answer 1

This is an absolutely fair statement. At its core, economic efficiency will always be the antagonist of economic justice. In a market economy, there is hard natural selection, the main criterion of which is efficiency, which determines a higher level of profitability. The share of large corporations in the US agricultural products market (livestock products and grain growing) is in the range of 50-84%*, which allows them to dictate their conditions in the industry and market. From the point of view of economic efficiency, everything that happens is right, because the effect of scale works. But from the point of view of economic justice - the situation is terrifying.Why in a law-governed state small and medium-sized businesses regularly replenish the treasury and provide jobs and go bankrupt. Thus, justice once again loses, this time to efficiency.

*(source: https://www.farmaid.org/issues/corporate-power/corporate-power-in-ag/ )