Abstract

Modem economic theory is fundamentally a behavioural interpretation of market events, however, its common evaluation is in moral terms. The tensionbetween these two aspects of economics is explored along with the underlying moral threads that haunt the positive science.The causal foundations of the market are reviewed. Supply and demand are both positively evident in the marketplace, however their theoretical explanations are unsatisfying. By taking the analysis no further than the positive behaviours, this problem disappears. The advantages of this strategy are assessed in terms of popular tendency to assert that economics and morals are totally separate sciences. Against this, it is shown that moral thought remains the central foundation to positive economics.The paper concludes that there are two possibilities for economic science. One accepts that there is no moral basis for the market, but studies common practice within it. This is generally what is commonly understood as economics today. The other is an exploration of the moral content of economic action within a free commercial environment. The latter accepts the market as amoral and seeks to explore the moral content of various economic strategies. Despite the practical usefuhiess of the former, only the latter direction can be shown to be fully consistent.