How do we solve this dilemma? Assuming capitalism is based on a mutual system of trust among consumers and producers, employers and employees, is one justified in breaking a contract even if it's in the pursuit of happiness? If we used Kant's Categorical Imperative, wouldn't society then break down and cease to function because no one could place any faith in the contracts? Yes or no?

I don't agree with the premise. I don't think capitalism is based on any system of trust.

Ms. Sue is right, I think. Trust has little to do with it!

http://www.answers.com/capitalism
Be sure to scroll down and read Britannica's definition and explanation, as well as the first definition you find at the top of this webpage.

To understand how to approach this dilemma, let's break it down step by step.

First, we need to understand the underlying principles of capitalism and the role of trust in this system. Capitalism is an economic system where private individuals or businesses own and control the means of production and distribution of goods and services. Trust forms the foundation of capitalism because consumers trust producers to deliver quality products, while producers trust consumers to purchase their goods or services.

In terms of contracts, they are legally binding agreements that establish rights and obligations between parties. When both parties willingly enter into a contract, they are expected to fulfill their obligations. However, conflicts arise when an individual desires to break a contract in pursuit of personal happiness.

If we analyze this situation from Immanuel Kant's ethical perspective, the Categorical Imperative can provide guidance. Kant's Categorical Imperative states that one should act based on principles that could be universally applied to all individuals in similar circumstances without contradiction. In other words, the principle for breaking a contract in pursuit of happiness should be such that it could be applied universally, and society could still function.

Now, let's address the question directly: If individuals start breaking contracts whenever it suits their pursuit of happiness, it could lead to a breakdown of trust and a significant impact on society. If contract obligations are not honored, it erodes the mutual trust upon which capitalism thrives. This breakdown can have negative consequences for both consumers and producers, leading to economic instability.

So, based on the analysis provided, the answer would be no. Breaking a contract in pursuit of personal happiness, without a valid justification that can be universally applied, could potentially undermine the functioning of society and the trust essential in capitalist systems.

It's important to note that while this provides an ethical perspective, there may be other considerations, such as legal implications, extenuating circumstances, or individual moral frameworks, that could impact how this dilemma is resolved in practice.