Economic Justice

Economic justice refers to principles in welfare economics that propagate equal distribution and allocation of resources, fair representation, and opportunities for people from all social sections. The idea believes economic equity will ultimately lead to a nation's prosperity and success.

The primary aim of the concept is to provide a dignified and just life to all citizens in a country. Some examples of economic justice in social work include providing a universal basic income, eliminating gender and racial stereotypes in the workplace, alleviating income disparity, etc. These examples align with standard approaches to promoting economic justice in social work.

• Economic justice can be defined as a set of moral principles promoting equal representation, opportunities, and rights for all sections of society at work, schools, and public places.
• Economic injustices include gender wage gaps, income and wealth disparity, racial discrimination at work, and employees not utilizing their full potential.
• Economic justice organizations constantly work with donors and countries to promote economic equity. Examples of such organizations include the International Labor Organization, National Organization for Women, Care International, etc.

Economic justice is a crucial concept in addressing inequalities within countries. As globalization progresses, it becomes increasingly important for nations to confront internal disparities before engaging with the global community. By doing so, they can prevent the exacerbation of existing inequalities and work towards creating a more just and equitable society.

The theory focuses on providing economic equity across genders, races, cultures, and social groups. Economic equity connotes to financial and monetary aspects of an economy. Often, people are discriminated against at jobs, schools, and other public places due to their social background, giving way to economic inequality.

Another medium of economic injustice is when people are employed in jobs beneath their skill level. They need to be using their full potential and be more efficient. Individual output affects a nation's productivity and growth. Further, these people make less income, which reduces consumption and affects demand.

Other forms of injustice include gender wage gaps in the workplace, underrepresentation of women in leadership roles, wealth and income disparity, etc. Economic equity on the global front is a rising concern adopted by economic justice organizations, like International Labor Organization, Center for Economic and Social Rights, Africa Action, etc. These organizations and many others promote it and address inequality globally.

Consider the following cases to understand the concept better.

Example #1

Here's a hypothetical country X. The per capita income of X in 2022 is $90,000, making it the second richest country. However, the average income of the top 5% of income-earners is $250,000, whereas the bottom 5% earned only $2500.

The existence of such income inequality can contribute to poverty and social challenges for a significant number of people. In response to this income disparity, the government of country X decides to introduce a progressive tax system.

This system aims to redistribute income and address economic inequality by collecting higher tax revenues from those who can afford it and using those funds to support and uplift disadvantaged individuals and communities.

Example #2

Pew Research Centre findings indicate that the gender wage gap in the United States has experienced minimal change over the past two decades. Women earned approximately 82% of their male counterparts' hourly wages as of the reported period. The wage gap across all age groups has decreased by 17 percentage points between 1982 and 2022. However, since 2002, there has only been a two-percentage point difference, indicating a slowdown in progress.

There's relief when one considers the gap among wage earners in the 25-34 age group. There is only an 8% gap, i.e., women earned 92% of men's wages. The study considers full-time and part-time workers; therefore, it is comprehensive. Internationally, women made 77% of men's salaries, as reported by Forbes. These studies show that global economic justice still has a long way to go.

Global economic justice is essential for social justice and economic growth. Let’s understand it further:

• Justice comes in many forms – political, legal, economic, etc. All these come under social justice. Justice in all areas is necessary if everyone should be treated equally and receive fair representation. It also saves workers from exploitation. Improving people's economic conditions will increase their awareness, directly leading to their availability of justice. For instance, society perceives an educated person more respectfully than an uneducated individual.
• When everyone is treated just, disadvantaged communities are given opportunities to improve their conditions. They get economic and social representation to be creative and independent. Under better conditions, people are more productive and do meaningful work that suits their potential. Finally, when people are better off, they consume more resources. Thus, increasing demand as economic output increases economic development and propels growth.

Achieving economic justice requires the effort of all members of society – government, and citizens. Given below are a few techniques to make it possible:

#1 - Minimum wages

Minimum hourly wages ensure basic dignity for people belonging to low-income backgrounds. It also protects them from exploitation and guarantees them fundamental human rights. Further, in capitalist economies, the absence of minimum wages can aggravate income inequality as business owners fill their pockets at the expense of workers.

#2 - Progressive taxation

Progressive taxation is one of the best techniques to improve income disparity. Under the progressive tax system, high-income earners must pay higher taxes, and low-income earners either have to pay less or are exempted from paying taxes. The taxes collected are used to support disadvantaged citizens.

#3 - Inclusion

Governments introduce diversity inclusion initiatives to recognize and provide fair representation to individuals facing gender, racial, social, and cultural stereotypes by mandating equal pay and maintaining reservations for disadvantaged groups in education, jobs, etc.

Various other strategies, policies, and interventions may also be necessary to address the diverse factors contributing to economic inequality and achieving greater social justice.

Economic and social justice concepts encompass distinct aspects of fairness within society. But let's understand a few differences between them:

This article has been a guide to What Is Economic Justice. We explain the concept with its examples, comparison with social justice, how to achieve it & importance. You may also find some useful articles here -

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