Microeconomic Principles Ethics

Consequentialism is an ethical stance with proposes that actions and decisions should be decided on based on the overall net benefit or outcome of the decision. Consequentialism compares the benefits and the costs, determining whether the action is ethically justifiable based on if the overall benefits out way the costs. As Hausman discusses “Consequentialism denies that agent’s preferences among actions are governed by principles that are not concerned with the consequences of the actions” (p. 113, 2006) implies that consequentialism is solely focused on the outcomes of the actions. Consequentialism applied to Operation Barga should be interpreted on how the new laws benefit the majority rather than the few. Operation Barga changed the original agreement of sharecroppers or bargadars renting land in exchange for half of their crop instead changing it to 25%. This change in laws benefited farmers as they were able to keep 75% of their crop, which because of deprivation was much needed. However, these laws do not benefit the landowners as they are receiving less crops for the same land. In retrospect before operation Barga 73% of rural population lived in poverty. The purpose of the operation was to give greater empowerment to farmers, with larger entitlement to their crops. Operation Barga has led to 28% growth in agricultural productivity in the region. The increase in productivity means an increase of the overall output as well as increase in the incomes of the farmers. As previously viewed the original agreement between sharecroppers and landowners was unfair, as a result of high levels of deprivation. Operation Barga is ethically justified due to the fact through consequentialism as it has resulted in a greater net benefit leading to more farmers and greater output. As well as having created a greater response to the needs of the poorer farmers.