Economics Is a Moral Science

Abstract This paper introduces a value-based approach to economics. It begins with the proposal to change the definition of economics. Whereas the standard approach focuses on the problem of scarcity the value-based approach studies the realization of values. Its subject is the right thing to do in all kinds of situations, like the realization of a good home, good work, and the right goods. In this way economics once again becomes the moral science that classical economists pursued. Important innovations are the notions of “shared goods” and “the willingness to contribute.” The value-based approach stimulates a reading of the story of Robinson Crusoe that is quite different from the standard reading of the story. JEL Codes: Z130