An attempt to achieve economic justice is a progressive taxation system in which the percentage of tax increases as the amount of basic income increases. The aim of progressive taxation is to combat income inequality and allocate funds to social services, public infrastructure and education. Earned income credit, affordable housing and need-based federal financial assistance for college students are other examples of institutions of economic justice. The Commission argues that the problem is that we do not have a British economic model – we have a British economic waste. Great strengths are uncomfortably found next to deep weaknesses. Many of these weaknesses date back more than a quarter of a century and are the result of deliberate political decisions that have created an economy in which too much power is concentrated in too few hands. Economic justice is a component of social justice and the economy of well-being. It is a set of moral and ethical principles for the construction of economic institutions, where the ultimate goal is to give each person the opportunity to create a sufficient material basis for a dignified, productive and creative life. In the future, a “decade of disruption” is looming, which will bring both challenges and opportunities. Brexit will be a significant change in the UK`s economic governance and trade relationship. While there remains considerable uncertainty about its impact in the short and long term, it will be clearly needed – and could create opportunities for the UK economy to become more resilient and competitive, with a focus on higher productivity and export performance. Justice in economics is a subcategory of welfare economics.
It is a “set of moral and ethical principles for building economic institutions.” [1] Economic justice aims to give every person the opportunity to live a dignified, productive and creative life that goes beyond the simple economy. [2] It is clear that the British economy needs to be fundamentally reformed. A little tinkering on the edges will not respond to the measure of the moment. A major change is needed. That is why the Commission argues that we need an ambitious programme to rewrite the rules of the UK economy. This means rethinking the institutions, frameworks and rules that govern the economy and addressing the concentrations of economic power that hinder economic success. Another form of economic justice is made available to people from different backgrounds. Racial and gender disparities stem from years of systemic progression. It can be circumvented by creating additional opportunities for those who come from disadvantaged backgrounds – from a low-income or vulnerable segment of the population. Economic justice has been defined as “a set of moral principles for the construction of economic institutions whose ultimate goal is to give every human being the opportunity to create a sufficient material basis on which to live a dignified, productive and creative life beyond the economy.” Therefore, an argument of economic justice emphasizes the need to ensure that everyone has access to material resources that create opportunities to live a life that is not burdened by urgent economic worries. By definition, this is reminiscent of the broader vision of health expressed by the World Health Organization: “A state of complete physical, mental and social well-being, not just the absence of disease or infirmity. In both cases, the pursuit of health and economic justice is aimed at something greater than mere physical well-being or financial solvency.
Rather, the goal is to shape the basic conditions – that is, higher incomes or the absence of preventable diseases – that allow people to live full and sustainable lives, without fear of meeting their basic needs or falling into poor health. The third aspect of economic justice is to ensure that wealth is widely distributed across households, regions and economic sectors. IMF research shows that redistributing income from the richest to the poorest in society actually stimulates growth because the poorest are more likely to spend in the economy (a higher “marginal propensity to consume”). This goes against free market ideologues who have long claimed that inequality is the price of efficiency: that those at the top must be disproportionately rewarded as “wealth creators.” In addition, the UK has the most unbalanced economy in Europe, with the richest region on the continent in London and other regions among the poorest.