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Navigating the Intersection of Morality and Markets: My Insights on Sandel’s Lecture

E. R. Tsai
9 min readJan 28, 2024

In a society where everything is for sale, life is harder for those of modest means. The more money can buy, the more affluence (or the lack of it) matters.”
Michael J. Sandel, What Money Can’t Buy: The Moral Limits of Markets

Recently, I delved into Michael Sandel’s thought-provoking lecture “HLS in the World | Markets and Morals,” which confronts the complex dynamics between market mechanisms and ethical considerations in legal and political systems. As I watched the lecture, I found myself deeply resonating with Sandel’s arguments, particularly regarding the commodification of justice and the ethical dilemmas in handling refugees. These reflections are personal and stem from my viewpoint, colored by academic insights.

Screenshot from the YouTube video

A striking example of market influence in the justice system is the unofficial ‘upselling’ of prison rooms. Wealthy criminals and political figures often secure better accommodations through under-the-table transactions, fostering a rampant black market, especially in the country where I live, Indonesia. However, if we consider a more regulated approach, akin to the United States, where such practices are acknowledged and regulated, we encounter a pragmatic, albeit morally challenging solution. By formalizing these transactions, we can transform them into a legitimate revenue source for the government, curtailing illegal dealings between prisoners and wardens. It’s a controversial stance, but one that pragmatically acknowledges the ubiquity of these market forces, aiming for a win-win outcome.

Another intriguing example is the Switzerland’s policy allowing towns to pay fines, instead of accepting refugees initially struck me as a pragmatic approach. However, my agreement diverges when considering the allocation of these fines. Drawing on the Kaldor-Hicks principle, I propose a more equitable solution: directing these funds directly to the refugees. This method would support them in finding alternative shelter, akin to a personal scenario where, unable to house my extended family of 22, I’d offer financial aid for them to find hotel accommodations. This approach balances community preferences with the ethical imperative of aiding those in need.

Sandel’s lecture nudged me to ponder the ethical ramifications of monetizing legal and moral obligations. While practicality often dictates our decisions, the moral landscape should not be overshadowed by market efficiency. This balance is delicate and demands constant vigilance. In grappling with these complex issues, I find myself wrestling with the moral implications of such commodification, seeking a path that respects human dignity while acknowledging the realities of our market-driven world.

Commodification of Morality

Reflecting on Sandel’s discourse, it becomes evident how market reasoning infiltrates our legal system, subtly shifting moral boundaries. Instances like paying criminals not to commit crimes or commodifying legal obligations through fines reveal a deeper ethical dilemma. This commercialization of morality raises questions: Are we simplifying complex moral decisions into mere transactions? By endorsing such practices, do we risk eroding the foundational values of our justice system? These are not just rhetorical questions but pressing concerns that challenge the core of our societal ethics.

The intersection of market dynamics and ethical decisions brings to light a significant concern: Does the reliance on financial incentives diminish the intrinsic value of moral actions? When monetary compensation becomes a motivator, does it not trivialize the underlying moral imperatives? In the context of the Swiss town opting to pay fines instead of hosting refugees, it seems like a pragmatic solution. Yet, it starkly illustrates how market mechanisms can supersede communal and humanitarian responsibilities, leading us to question the long-term impact of such decisions on societal values and human empathy.

While the market offers efficient solutions, its application in areas traditionally governed by moral and ethical principles necessitates a cautious approach. In advocating for the regulation of market practices in the justice system or the fair allocation of fines for communal obligations, we must remain vigilant. It’s crucial to ensure these solutions do not undermine the moral fabric of our society. Instead, they should serve as complementary mechanisms, aiding in achieving justice and communal well-being, without replacing the essential human values of fairness, empathy, and integrity.

The Dilemma of a Law Student

As a law student, I’ve been steeped in the ideals of justice and human rights. My education has always emphasized the sanctity of these principles, portraying them as the bedrock of a fair society. However, Sandel’s lecture has thrown me into a sea of contradictions. Here I am, learning about the inviolability of human rights, yet I can’t turn a blind eye to the pervasive influence of market mechanisms in shaping our legal and ethical landscapes.

There’s a part of me that feels naive, almost foolish, for grappling with this dichotomy. The world, as it stands, is undeniably driven by market forces. The pragmatic side of me leans towards accepting this market-driven reality, yet my education in justice and human rights screams in opposition. It’s like walking a tightrope between idealism and realism, constantly questioning the validity of my moral compass.

Embracing market solutions, like regulated prison upgrades or the Swiss model of refugee compensation, seems to be a realistic approach to complex social issues. But it conflicts with everything I’ve learned about justice and human rights. It’s a constant struggle to reconcile these market-driven solutions with the ethical imperatives ingrained in me through my legal education.

Sandel’s lecture has opened my eyes to the complex interplay between market dynamics and moral values. It’s a reminder that the world is not black and white, and as a future lawyer, I must navigate these gray areas with both pragmatism and a strong ethical foundation. The journey is about finding that middle ground where market efficiency and human rights can coexist, shaping a society that values both practicality and morality.

Prison Room Upselling Program: Advertisement or Depravement?

Image Source: Los Angeles Times

In Indonesia, the phenomenon of wealthy prisoners and politicians receiving upgraded prison facilities is a stark example of market dynamics infiltrating the justice system. This practice, though unofficial, is widespread, creating an inequitable system where money can buy comfort even behind bars. Such a system is rife with black market transactions and illegal dealings, as there is no formal regulation in place to monitor these upgrades.

Source: Narasi.tv. Najwa Shihab’s interview with Setya Novanto showing his jail condition.

The case of Setya Novanto in Indonesia exemplifies the issue of wealthy prisoners receiving upgraded facilities, a situation indicative of deeper market dynamics at play within the justice system. This phenomenon, though unofficial and widespread in Indonesia, leads to a system riddled with black market transactions and illegal dealings due to lack of regulation. In contrast, a regulated system like California’s, where prison privileges can be legally obtained, presents a different approach. This regulated model acknowledges and manages these market forces, offering transparency and additional government revenue, but raises moral questions. As a law student, this contrast highlights a dilemma between upholding justice and equality principles and realistically acknowledging existing market forces in legal systems. The Indonesian case, therefore, reflects the ethical challenges of integrating market mechanisms into legal frameworks, illustrating the struggle between idealism and the harsh realities of the world for those studying law.

Source: IDN Times. Picture of Setya Novanto’s Actual Prison

Contrasting this with a regulated approach, such as the one in California under the California Penal Code, highlights a different strategy. In California, certain privileges in prison can be legally obtained, thus acknowledging and regulating what is otherwise an underground market. This regulated system turns a blind eye to moral concerns in favor of pragmatism and government revenue generation. From a law student’s perspective, this raises a moral dilemma. On one hand, the idea of monetizing prison facilities seems to undermine the principles of justice and equality. On the other hand, acknowledging and regulating such practices can eliminate the black market, bringing transparency and additional revenue to the government.

This approach, while controversial, can be seen as a realistic acknowledgment of existing market forces within the justice system. The Indonesian case reflects the complexities and ethical challenges of integrating market mechanisms into the legal framework. As someone studying law and grappling with these issues, I find myself torn between the idealism taught in classrooms and the harsh realities of the world. This struggle encapsulates the difficulty of navigating the fine line between morality and market efficiency in legal practices.

Refugee Compensation: The Swiss Model and the Kaldor-Hicks Principle

The Swiss model, which allows towns to pay fines rather than accept refugees, offers a pragmatic, albeit controversial, approach to dealing with the refugee crisis. This model acknowledges the limitations or unwillingness of some communities to integrate refugees, while still maintaining a semblance of responsibility through financial penalties. However, while this approach is grounded in practicality, it lacks a certain humanitarian element that is crucial in dealing with vulnerable populations like refugees.

Applying the Kaldor-Hicks principle, which advocates for policies that could potentially benefit everyone involved, I propose a more compassionate and effective use of these fines. Instead of simply filling government coffers, the fines should be redirected towards directly assisting the refugees. This would involve using the collected funds to provide refugees with the necessary means to find shelter, sustenance, and a chance to rebuild their lives in more welcoming environments.

This concept parallels a personal situation. Imagine having a home too small to accommodate my entire extended family for a significant event. While I might be unable to host everyone under my roof, a responsible and caring action would be to provide financial assistance to help them find comfortable accommodations elsewhere. This is not just about alleviating my inability to host them but also about ensuring their comfort and well-being. Similarly, if a community opts out of hosting refugees, redirecting their fine towards the welfare of these displaced individuals is a way to balance local constraints with global humanitarian responsibilities. It recognizes the reality of varying capacities and willingness among communities to host refugees while ensuring that those fleeing from adversity are not left without support.

The Swiss model opens a door to a discussion about how we can manage our humanitarian responsibilities in a world driven by market forces. As a law student, these issues challenge me to think beyond legal frameworks and consider the moral implications of our policies and practices. Balancing market efficiency with ethical responsibility is complex, but it is a necessary endeavor to create a more just and compassionate world.

My Own Personal Reflection

Michael Sandel’s lecture on commodifying legal and moral obligations compels me to reflect on the ethical implications of such practices. It raises a fundamental question: At what point does the practicality of market efficiency infringe upon our moral and ethical standards? As a law student, I find myself in a constant struggle between the pragmatic acceptance of market-driven solutions and the idealistic values of justice and human rights instilled in me. The idea of commodifying aspects of our legal system, like upgraded prison facilities or managing refugee situations through financial means, presents a tangible dilemma. Balancing these practical solutions with a sense of moral responsibility is a tightrope walk, challenging me to consider the broader impact of these decisions on societal values and human dignity.

In conclusion, the interplay of market principles with legal and social issues, as highlighted in Michael Sandel’s lecture, underscores a complex ethical landscape. Balancing practicality with morality presents a challenging yet essential task. This balance demands critical thinking and a deep consideration of ethical implications, ensuring that our pursuit of efficiency does not compromise our foundational values of justice and humanity.

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E. R. Tsai
E. R. Tsai

Written by E. R. Tsai

when you look into the abyss, the abyss looks back into you..

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