This article discusses the possibility of an economic foundation for a work and savings ethic. In particular, James M. Buchanan has, in his late works, endorsed traditional 'Puritan' demands for working and saving more, while arguing that this is beneficial for all members of a society. I will question Buchanan's analysis of the 'Puritan' ethic both in normative and methodological respects before aiming at a constructive interpretation.

We explore themes in Nobel Prize–winning economist James M. Buchanan’s work and apply his Ethics and Economic Progress to problems facing individuals and firms. We focus on Buchanan’s analysis of the individual work ethic, his exhortations to “pay the preacher” of the “institutions of moral-ethical communication,” and his notion of law as “public capital.” We highlight several ways people with other-regarding preferences can contribute to social flourishing and some of the ways those who have “affected to trade for the public (...) good” might want to redirect their efforts. We show how Buchanan’s work has considerable implications for business ethics. Just as his economic analysis of politics changed how we understand government, we think his economic analysis of ethics can (and should) change how we understand business. (shrink)

Whereas previous studies have criticized low-quality products for inadequate safety, this paper considers only safe products, and it examines the ethics of designing and selling low-quality products. Product quality is defined as suitability to a general purpose. The duty that companies owe to consumers is summarized in the Consumer-Oriented Process principle: “to place an increase in the consumer’s quality of life as the primary goal for producing products.” This principle is applied in analyzing the primary ethical justifications for low-quality products: (...) availability and applicability. Finally, a low-quality product should be designed afresh, not by altering an existing high-quality product. (shrink)

Whereas previous studies have criticized low-quality products for inadequate safety, this paper considers only safe products, and it examines the ethics of designing and selling low-quality products. Product quality is defined as suitability to a general purpose. The duty that companies owe to consumers is summarized in the Consumer-Oriented Process principle: “to place an increase in the consumer’s quality of life as the primary goal for producing products.” This principle is applied in analyzing the primary ethical justifications for low-quality products: (...) availability and applicability. Finally, a low-quality product should be designed afresh, not by altering an existing high-quality product. (shrink)