Neera K. Badhwar

Critics of commercial societies complain that the free-market system of property rights and freedom of contract tends to commodify relationships, thus eroding the bonds of personal and civic friendship. I argue that this thesis rests on a misunderstanding of both markets and friendship. As voluntary, reciprocal relationships, market relationships and friendship share important properties. Like all relations and activities that exercise important human capacities and play an important role in a meaningful life, market relations and activities are essentially structured and supported by ethical norms and, in turn, support these norms. The so-called norms of the market, such as instrumentality and fungibility, come in varying degrees and characterize not only market, but also nonmarket, relationships, including friendship. Furthermore, although market relationships are primarily instrumental, the individuals involved are not. The virtues of markets have their counterparts in friendship, as do their vices. For these and other reasons, market societies are not only not inimical to friendship, they create a more secure matrix for civic and personal friendship, as well as for other important values such as art, science, or philosophy, than any other developed form of society. Key Words: commercial societies • friendship • moral norms • virtues • vices.

The Milgram and other situationist experiments support the real-life evidence that most of us are highly akratic and heteronomous, and that Aristototelian virtue is not global. Indeed, like global theoretical knowledge, global virtue is psychologically impossible because it requires too much of finite human beings with finite powers in a finite life; virtue can only be domain-specific. But unlike local, situation-specific virtues, domain-specific virtues entail some general understanding of what matters in life, and are connected conceptually and causally to our traits in other domains. The experiments also make us aware of how easily unobtrusive situational factors can tap our susceptibilities to obedience, conformity, irresponsibility, cruelty, or indifference to others’ welfare, thereby empowering us to change ourselves for the better. Thus, they advance the Socratic project of living the examined life. I note a remarkable parallel between the results of the baseline Milgram experiments and the results of the learned helplessness experiments by Martin Seligman et al. This provides fresh insight into the psychology and character of the obedient Milgram subjects, and I use this insight to argue that pusillanimity, as Aristotle conceives of it, is part of a complete explanation of the behavior of the obedient Milgram subjects.

Liberal political philosophy presupposes a moral theory according to which the ability to assess and choose conceptions of the good from a universal and impartial moral standpoint is central to the individual's moral identity. This viewpoint is standardly understood by liberals as that of a rationalhuman(nottranscendental) agent. Such an agent is able to reflect on her ends and pursuits, including those she strongly identifies with, and to understand and take into account the basic interests of others. From the perspective of liberalism as a political morality, the most important of these interests is the interest in maximum, equal liberty for each individual, and thus the most important moral principles are the principles of justice that protect individuals' rights to life and liberty.According to the communitarian critics of liberalism, however, the liberal picture of moral agency is unrealistically abstract. Communitarians object that moral agents in the real world neither choose their conceptions of the good nor occupy a universalistically impartial moral standpoint. Rather, their conceptions of the good are determined chiefly by the communities in which they find themselves, and these conceptions are largely “constitutive” of their particular moral identities. Moral agency is thus “situated” and “particularistic,” and an impartial reflection on the conception of the good that constitutes it is undesirable, if not impossible. Further, communitarians contend, the good is “prior” to the right in the sense that moral norms are derived from, and justified in terms of, the good. An adequate moral and political theory must reflect these facts about moral agency and moral norms.

Peter Singer and Peter Unger argue that moral decency requires giving away all one's “surplus” for the relief or prevention of “absolute poverty,” because not doing so is analogous to refusing to save a drowning child to avoid making one's clothes muddy. I argue that there is a crucial disanalogy between the two cases and, moreover, that there are four independent moral objections to their thesis: it is monomaniacal in ignoring the variety of morally worthy ideals and elevating self-sacrificial aid to the global poor into the sole ideal; it is misanthropic in its indifference to the happiness of those it adjures to give; it is incompatible with integrity; it would have disastrous effects for the poor if it were generally adopted. I argue that genuine beneficence aims at creating or restoring the conditions that enable its beneficiaries to become self-sufficient creators themselves — creators of wealth and of meaningful and enjoyable lives. Small-scale beneficence is necessary for moral goodness, but large-scale beneficence is optional, so long as its absence is not due to a lack of regard for those in need. The uncharitable person violates the neo-Lockean non-waste proviso that we acquire or keep for ourselves and those we love as much, but only as much, as we can use or invest meaningfully or enjoyably, now or in the long run. But someone who invests all his resources in creating something of worth leads a morally worthy life even if he reserves nothing for large-scale charity. Both our capacity for beneficence, which bids us stretch out a hand to those in need, and our capacity for creation, which bids us reach for the stars, are important aspects of our humanity. The Singer-Unger ideal advocates not genuine beneficence but the profligate giving away of wealth to prolong lives, while failing to appreciate what makes life worth living. a Footnotesa I am grateful for helpful comments on this paper from Ellen Frankel Paul, Larry White (who commented on the paper at the 2005 conference of the Association for Private Enterprise Education), David Blumenfeld, and Garrett Cullity (whose comments from Australia were a wonderful example of voluntary international aid to a stranger). I would also like to thank Georgia State University, Bowling Green State University, and the Association for Private Enterprise Education for inviting me to present this paper, and the audiences at these presentations for their helpful discussion. Finally, I would like to thank Harry Dolan for his expert copyediting, which saved me from some embarrassing mistakes and infelicities.

Critics of commercial societies complain that the free-market system of property rights and freedom of contract tends to commodify relationships and erode the bonds of personal and civic friendship. I argue that this thesis rests on a misunderstanding of both markets and friendship. As voluntary, reciprocal relationships, market relationships and friendship share important properties. So-called market norms, such as instrumentality and fungibility, come in varying degrees and characterize not only market, but also non-market, relationships, including friendship. Further, although market relationships are primarily instrumental, the individuals involved are not. Both the virtues of markets and their vices have their counterparts in friendship. Like all relations and activities that exercise important human capacities and play an important role in a meaningful life, market relations and activities are essentially structured and supported by ethical norms and, in turn, support these norms. For these and other reasons, market societies are not only not inimical to friendship, they create a more secure matrix for civic and personal friendship, as well as for other important values like art, science, or philosophy, than any other developed form of society.