I myself am all for this sort of research due to the possible applications it may make possible in medicine in the future.
The concerns with this sort of research are largely split into three main groups (as far as I can see);
Ensoulment: due to concerns regarding whether the cells used have a soul and whether it is therefore wrong to use them for this purpose. This is not really an issue for me as I am agnostic (verging on the side of athiesm perhaps however).
Interfering with nature/playing god: concepts about the apparent purity and balance of nature and creationism (as well as often further religious comments) lead to many not wishing it to be interfered with. In my view however the nature we currently see came about through evolution and other scientific principles and was certainly not designed to be balanced, fair or of benefit to humanity (or designed at all in fact), so interfering with nature is not really a problem so long as we consider the impacts on the other organisms we share this planet with and upon whom we are to some degree dependant.
Attack of the Clones: people are also worried that research of this type might make cloning human beings possible and although I have no major moral objection against this, I am probably against the cloning of full human beings as it would reduce the variety of people on earth (making things less interesting), reduce the gene pool (perhaps causing problems with recessive genetic disorders and resistance to disease) and because I quite like being unique. The current research by no means makes this possible however so I have no objections to it.
Basically I think it is best to bring some very clear legislation in quickly across the world so as to make a clear distinction between theraputic (allowed) and reproductive (banned) cloning, rather than leaving it in the current state of uncertainty existing in most countries.
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