Economics and Justice

Introduction. The book is a study in Adam Smith's system of ideas; its aim is to reconstruct the peculiar framework that Adam Smith’s work provided for the shaping of a semi-autonomous new discipline, political economy; the approach adopted lies somewhere in-between the history of ideas and the history of economic analysis. My two claims are: i) The Wealth of Nations has a twofold structure, including a `natural history' of opulence and an `imaginary machine' of wealth. The imaginary machine is a (...) kind of Newtonian theory, whose connecting links are principles; provided either by `partial' characteristics of human nature or by analoga of physical mechanisms transferred to the social world; ii) a domain of the economic, understood as a self-standing social sub-system, was discovered first by Adam Smith. His `discovery' of the new continent of the economic was an `unintended result' of a deviation in his voyage to the never-found archipelago of natural jurisprudence. -/- 1. Imaginary machines and invisible chains: natural philosophy and method. The first chapter reconstructs Smith's views on the method in natural philosophy, presented primarily in the History of Astronomy (HA). The peculiar kind of semi-sceptical Newtonianism which permeates the essay is highlighted. Its reconstruction of the history of one natural science is shown to be based on the assumptions of Hume’s epistemology, and to lead to a self-aware deadlock. Smith's dilemma is between an essentialist realism and sceptical instrumentalism; the Cartesian presuppositions he shares with Hume and with the 18th century as a whole make it impossible for him to overcome his dilemma. The following chapters will show how, on the one hand, Smith's skeptical methodology encourages him in the enterprise to `carve off' a new self-contained discipline and how, on the other hand, his epistemological dilemma is reflected in the inner tensions of his moral and political theory as well as in a number of basic oscillations concerning the status of the new discipline. -/- 2. Chessboards and clocks: moral philosophy and method. -/- The second chapter reconstructs Smith's views on the method in the parallel field of moral philosophy, including the theory of moral sentiments and natural jurisprudence. I argue that The Theory of Moral Sentiments, when considered together with with the Lectures on Jurisprudence, where Smith's peculiar version of a `weaker' form of natural law is presented, wins special interest, not only for the history of ethics but even more for the history of political theory and the social sciences. The two most striking features of Smith's work in this area are highlighted. First, his effort at reformulating the `practical science' is a methodologically self-aware attempt at applying the Newtonian method to moral subjects. Secondly, this attempt ends in a stalemate as two distinguished kinds of normative order are introduced: one ultimate order of Reason, ultimately justifiable but inaccessible, and one weaker order of our `natural sentiments', to which we have empirical access, but which is so variable as to lack any ultimate value as a basis for grounding our normative claims. These two parallel conundrums may arguably account for the author's inability to publish during his lifetime both The History of Astronomy and the projected history and theory of law and government. -/- 3. Wheels, dams, and gravitation: the structure of scientific argument in The Wealth of Nations. -/- The third chapter provides the core of the book, dealing with the structure of the argument in WN. I argue that the main presupposition that makes the shift possible from a `natural history' to a `system' approach is the Newtonian contrast of `mathematical' with `physical' explanation; that is, Smith drops any discussion of the "original qualities" of human nature that could account for economic behaviour, while introducing, as `principles' for the system, a set of `hypothetical' statements of `observed' regularities in human behaviour and of `observed' super-individual self-regulating mechanisms. In bringing this presupposition to light, the coexistence of a teleological with a mechanistic approach is clarified; fresh light is shed on the notion of the invisible hand by a comparison of its occurrence in Smith with the occurrence of the same expression (until now overlooked) in the correspondence between Newton and Cotes. Finally, the peculiar semi-prescriptive and semi-descriptive character of political economy are highlighted, and the consistency of Smith's `impure' semi-prescriptive social science, when understood in his own terms, is defended against familiar charges with inconsistency and against even more familiar strained modernizations. -/- 4. Apples, deer, and frivolous trinkets: the construction of the economic. -/- The fourth chapter draws consequences from the third, examining how Smith's achievement in political economy, marking its transition to scientific status, carried a re-description of the phenomena, creating the comparatively independent and unified field of the economic. Smith's achievement is interpreted not as the `discovery' of an autonomous character already possessed by the economy out there, so much as a Gestalt-switch by which our perception of social phenomena is modified making us `see' the partial order of the economy as an isolated system. To sum up, the autonomy of the economic in social reality and the autonomy of the economic in social consciousness are shown to be two sides of one process. -/- 5. Concluding considerations: Political economy and the Enlightenment halved. -/- A few suggestions on the status of economic theory two centuries after The Wealth of Nations in its relationship to ‘practical philosophy’ are illustrated. (shrink)

Atribuindo a condição de propriedade ao trabalho a teoria de Locke dissimula a desigualdade através da “igualdade de relações” de indivíduos abstratos em um sistema jurídico-político que encerra uma liberdade proporcional ao status dos indivíduos como agentes econômicos, conforme assinala a pesquisa que, dessa forma, defende que, se cabe à sociedade política a delimitação das obrigações da lei natural, o que se impõe ao direito de propriedade individual é a restrição do seu exercício à necessidade, tendo em vista as múltiplas (...) formas que pode assumir como mercadoria nas relações de troca, que implicam a força de trabalho como objeto de troca e consumo em uma formação econômico-social que torna o homem uma simples mercadoria. Nesta perspectiva, baseado na teoria de Rousseau, que confere à Vontade Geral a condição para o exercício da soberania popular, o trabalho em questão, a partir da concepção dialético-materialista da universalidade, detém-se em seu processo de formação que, inter-relacionando deliberação e decisão, tende à correspondência entre fato e direito, convergindo para assinalar a sua capacidade de atribuir ao sistema de direitos e deveres a necessária conformidade envolvendo a realidade histórico-cultural e econômico-social concreta. Dessa forma, consistindo em um processo ético-jurídico de deliberação coletiva, o que se impõe à manifestação da Vontade Geral é um movimento dinâmico-dialético que demanda uma formação econômico-social baseada no interesse comum, convergindo para uma forma de autodeterminação que guarda possibilidade de promover a superação da alienação das capacidades humanas no contexto das relações socioprodutivas, a saber, a autogestão. Tal experiência social de autodeterminação coletiva envolve tanto a esfera política quanto o âmbito econômico (trabalho) e encerra a noção que implica desde a igualdade substancial (concreta) até a efetiva participação política, sobrepondo-se ao viés mercadológico da organização econômico-social vigente e à estrutura burocrática corporificada pelo Estado no sistema capitalista. (shrink)

The modern epoch is characterized by a paradoxical form of social inequality in which poverty expands alongside the unprecedented growth in socially-produced wealth. Any one conception of this dynamic stakes a claim within the classical liberal problematic, in which the central political challenge is the negotiation of individual interests with those of the social whole. Part one of this work analyzes three influential conceptions of the inequality paradox in the history of social thought, those of G.W.F. Hegel, Karl Marx, and (...) John Maynard Keynes, each encompassing a perspective on the nation-state and its relationship to the institutions of economic intercourse. The first chapter analyzes and argues for an interpretation of “the problem of poverty” in Hegel’s Philosophy of Right. I intervene in an ongoing discussion on whether and how Hegel resolves the problem he raises. How Hegel proposes to resolve the problem and the form his criticisms take hold important implications for those drawing contemporary insights from Hegel’s work. Marx’s early work represents a fuller critical response to the modern problem of poverty, in which he identifies its dual political and economic character expressed in the economic dispossession and political exclusion of a significant population in the Prussia of his day. I argue that the consolidation of bourgeois property and social relations in Germany played a critical role in the development of Marx’s political economy, but that most significant was his debate with Proudhon over the significance of the problem of poverty for the modern epoch. The third chapter presents an analysis of John Maynard Keynes’s critical appraisal, written some five decades after Marx, of the modern inequality paradox in his time, a period newly marked by world war and revolution. I present a philosophical assessment of his proposed rectification of the problem. The justifications he offers bear notable similarities to Hegel’s approach to the issue. In part two, I turn to the present period, where the growth of social inequality in the latest phase of the expansion of capitalism worldwide has strained the nation-state system to its limits and posed political challenges for which institutions have not yet been developed, as Thomas Piketty has argued. Considering the historical models for thinking about the modern inequality paradox, I offer an analysis of Piketty’s latter-day Keynesianism and that of political economist Geoff Mann. In contrast to Keynes’ outlook, both contemporary thinkers express immense anxiety over the unlikelihood that the world economy in its current form can be rationally managed by global collaboration among competing nations. I then offer a counter-assessment to the viewpoints of Piketty and Mann, based on the inequality data Piketty, et al. have produced. I argue there is a more equitable and democratic alternative before us. (shrink)

Household debt has been widely discussed among social scientists, policy makers, and activists. Many have questioned the levels of debt households are required to take on, and have made various proposals for assisting households in debt. Yet theorists of distributive justice have left household debt underexamined. This article offers a normative examination of the distributive justice issues presented by proposals to relieve household debt or protect households from overindebtedness. I examine two goals at which debt relief proposals aim: remedying disadvantage (...) and stabilizing expectations. I then examine strategies for relieving existing debts such as debt abolition, forgiveness, bankruptcy, and mitigation, as well as strategies that aim to prevent future indebtedness, such as public provision or financing of costly goods and credit or interest rate regulations. (shrink)

Business ethicists should examine not only business practices but whether a particular type of business is even prima facie ethical. To illustrate how this might be done I here examine the contemporary U.S. defense industry. In the past the U.S. military has engaged in missions that arguably satisfied the just war self-defense rationale, thereby implying that its suppliers of equipment and services were ethical as well. Some recent U.S. military missions, however, arguably fail the self-defense rationale. At issue, then, is (...) whether a business supporting these latter missions may not be circumstantially unethical. No it is not, say defense industry advocates, for two principal reasons. For one, this business benefits society at large in numerous ways. And, for another, the organizer of these military missions is a superpower which by its very nature is not subject to the ethical constraints of the self-defense rationale. I dispute both reasons, argue against the second, and conclude that the U.S. military-industrial complex (MIC) is circumstantially unethical. (shrink)

In a published debate between Law and Economics avatar Judge Richard Posner and Professor Robin Malloy entitled ‘Is Law and Economics Moral?’, Malloy argued that the dominant methodology of Law and Economics is immoral. Malloy likened it to the Frankenstein Monster – an unholy, undead abomination that can go berserk despite its ostensibly benign provenience. Malloy claimed that wealth maximization applied to social discourse ‘reduces people to an human existence to imaginary variables for calculation’.

Proponents of evidence-based policy (EBP) call for public policy to be informed by high-quality evidence from randomized controlled trials. This methodological preference aims to promote several epistemic values, e.g. rigor, unbiasedness, precision, and the ability to obtain causal conclusions. I argue that there is a trade-off between these epistemic values and several non-epistemic, moral and political values. This is because the evidence afforded by preferred EBP methods is differentially useful for pursuing different moral and political values. I expand on how (...) this challenges ideals of value-freedom and -neutrality in EBP, and offer suggestions for how EBP methodology might be revised. (shrink)

Mark Pennington’s Robust Political Economy is a systematic exposition of a framework for analyzing institutional performance. The Robust Political Economy framework evaluates institutions according to their ability to solve knowledge and incentive problems. On grounds of robustness, Pennington combines insights from Austrian market-process theory and public-choice theory to defend classical liberalism from several compelling critiques. These include theories of market failure in economics; communitarian, deliberative-democratic, and liberal-egalitarian theories of justice; and concerns with social capital, domestic and international poverty, and ecology.

The phenomenon of corruption is a cancer that affects our country and that it is necessary to eradicate; This dilutes the opportunities for economic and social development, privileging the single conjunction of particular interests, political actors in non-legal agreements for their own benefit, which lead to acts of corruption. Recent studies indicate that the level of corruption present in a political system is directly related to the type of institutional structure that defines it (Boehm and Lambsdorff, 2009), as well as (...) the ineffectiveness of the control organisms (Casar, 2015; Cárdenas, 2010, Rojas, 2010, Carbonell, 2009, Restrepo, 2004), which requires citizen action to combat corruption (Sandoval, 2010, Villanueva, 2006). This work, focuses our attention on the federal public administration, presenting as a proposal to empower the citizen action in the fight against corruption and in the National Anticorruption System; the figure of Whistleblowers or generator of citizen alert, based on two fundamental principles: i) recognizing the citizen's obligation to report acts of corruption and ii) the granting by the authority of witness protection. These two actions will result in two important results: i) Consolidate the citizen's complaint to inform society about acts of corruption and ii) and the exercise of freedom of information so that society is able to be informed about acts of corruption. These actions will allow promoting and consolidating a culture of reporting acts of corruption that may constitute a crime as a fundamental pillar in the National Anticorruption System in Mexico. (shrink)

In Mexico, the management of public resources has been questioned by the State, and mainly the results that the public administration at its three levels (federal, state and municipal), by the lack of transparency in the application and verification of public resources. The experience that gives us the operation of different emerging programs that focused on reducing social and economic inequality in the country, we can locate them as the first attempts in the search for a solution that is complex. (...) Moving from the role of the benefactor and welfare state to the promoter of the regions and in the recognition of the focalization of priority attention areas, the path that has been taken is not only the beginning. Recognizing the public nature of public finances as a promoter of social development, we must understand it as the one assumed by the State through social, political and economic co-responsibility to solve poverty and marginalization of its own public policy orientation and vision of solution has been made since the eighties. From the above, we can point out some preliminary conclusions including the study of the indigenous language-speaking population with a high level of social exclusion in the methodology for the definition of multidimensional poverty in Mexico, will allow the allocation of public resources in the fight against poverty to be effective since it will make it possible to identify to the target population that is subject to social exclusion and marginalization. This invites us to a final reflection: What to do to address the just social demands of the indigenous population that is immersed in poverty, marginalization and exclusion? What to do so that they do not leave their communities, and if they have already done so, how to attend to the needs of family groups that are due to the expense of a remittance that may never arrive? (shrink)

This paper analyzes the historical and cultural genealogy of the presumed separation between ethics and economic theory, taking publicly supported care for children of working mothers as a case that illuminates problems for thinking about gender justice that arise because of these disciplinary boundaries and the particular concept of “the human individual” that is implicit in them. Care for children of working mothers is an issue that has been important in the West since the inception of “second wave” feminism. However, (...) I argue that the global expectation that women are responsible for care of small children, coupled with the reality that small children really must have caregivers, makes this issue pertinent to women everywhere, and it has lately been recognized as an issue for development and global justice. Predominant political philosophies and neoclassical economics have a common philosophical root in abstract individualist method. I argue that this has made possible a claim of intellectual respectability for neo-liberal politics that resists feminist and postcolonial critique, even though these critiques show its inability to deal with matters, such as the need for child care, that have moral issues inextricably involved in them. The economy of rationalindividual self-interest has so far only generated child care with a very large component of exploitation of caregivers. (shrink)

This volume provides an overview of issues arising in work on the foundations of decision theory and social choice. The collection will be of particular value to researchers in economics with interests in utility or welfare, but also to any social scientist or philosopher interested in theories of rationality or group decision-making.

This is a systematic evaluation of the main arguments for and against the market as an instrument of social organization, balancing efficiency and justice. It links the distinctive approaches of philosophy and economics to this evaluation.

Thomas C. Leonard presents an intellectual history of the Progressive Era from the perspective of economists. It is hard to understate the influence this group had in developing Progressive ideas. Leonard brilliantly details how Progressive economists wielded enormous influence not only in spreading ideas about traditional economic concepts, but also ideas and theories that influenced political and civil liberties. For example, the Progressives gave us the social science professor, the scholar-activist, social worker, muckraking journalist, and expert government advisor. All of (...) these reform-vocations, according to Leonard, sought to replace the invisible hand of the market with the visible hand of the administrative state. In short, Leonard’s book is a must-read for everyone remotely interested in political economy. (shrink)

La problématique sous-jacente au débat concernant la tarifcation de la formation universitaire3, souvent pas suffsamment explicite, n’est pas de savoir quel est le coût de la formation universitaire, mais plutôt par qui et comment le coût doit être assumé. Cette communication se proposera de répondre à cette question en faisant appel à deux principes normatifs principaux, soit l’effcacité et l’équité. Nous donnerons une défnition de l’effcacité et verrons en quoi celle-ci commande une intervention publique. Nous présenterons ensuite deux critères d’équité (...) qui, en conjonction, devraient nous permettre d’évaluer les différents modèles institutionnels. Puis, nous essaierons de voir si l’un ou l’autre s’avère respecter davantage les principes élaborés. (shrink)

Résumé: Ce chapitre porte sur les théories de la justice distributive entre générations. La première partie discute trois défis à la possibilité même de parler d’obligations de justice intergénérationnelle : le problème de la non-existence, le problème de la non-identité, la conclusion répugnante. La deuxième partie discute la justification et la définition des obligations de justice à l’égard des générations futures, à partir de trois théories : le suffisantisme, le welfarisme, le principe de juste épargne de Rawls. Cette discussion conclut (...) que : (i) la version la plus plausible du suffisantisme prôné par le célèbre rapport Brundtland est un suffisantisme multiniveaux, qui permet de prioriser la satisfaction des besoins de base des différentes générations tout en reconnaissant l’importance de garantir les aspirations dans un second temps. (ii) Le problème de la malléabilité des préférences futures semble de prime abord une objection décisive contre le welfarisme intergénérationnel : même si nous leur léguions très peu de ressources et un environnement dégradé, nous pourrions apprendre aux générations suivantes à adapter leurs préférences à cette situation. Nous montrons que le welfarisme peut répondre à cette objection. (iii) Une interprétation à la fois suffisantiste et limitiste du principe de juste épargne rawlsien est proposée : l’épargne intergénérationnelle est requise jusqu’à ce que le capital accumulé suffise à maintenir les institutions justes ; sous la forme de croissance des richesses matérielles, l’épargne intergénérationnelle est prohibée au-delà d’une certaine limite car elle érode le sens de la justice. La troisième partie aborde la question de la mise en œuvre de la justice intergénérationnelle en contexte non-idéal. -/- Abstract This chapter is about distributive justice between generations. The first part discusses three challenges to the meaningfulness of talking about obligations of intergenerational justice: the non-existence problem, the non-identity problem, the repugnant conclusion. The second part discusses the justification and definition of justice obligations towards future generations, according to three theories: sufficientarianism, welfarism, Rawls’s just savings principle. This discussion reaches three conclusions. (i) The most plausible version of Brundtland’s sufficientarianism is multilevels sufficientarianism, which enables us to prioritize meeting the basic needs of each generation over the fulfilment of their aspirations, without denying the importance of realizing these aspirations once needs are being met. (ii) At a first glance, the fact that future preferences are malleable seems a problem for intergenereational welfarism and a decisive objection against it. Even if we bequeathed very little resources and a degraded environment to the next generation, we could teach them to adapt their preferences to this situation. We argue that welfarism can answer this objection. (iii) We propose an interpretation of Rawls’s just savings principle that is both sufficientarian and limitarian. Intergenerational savings are required until enough capital is accumulated to maintain just institutions over time. Intergenerational savings in the form of material wealth growth is prohibited beyond a certain limit because it erodes the sense of justice. The third part addresses how to implement intergenerational justice in a non-ideal context. (shrink)

Some people may think that libertarianism and meritocracy have much in common; that the libertarian's ideal world looks like the meritocrat's ideal world; and that the public policies guiding us to each are one and the same. This is wrong in all respects. In this essay I explain why. -/- After providing an overview of meritocratic justice, I argue that meritocracy is a more compelling theory of distributive justice than libertarianism. Meritocracy better protects the core value of personal responsibility; incorporates (...) efficiency-enhancing regulation which libertarianism cannot; provides more positive liberty; and solves salient, real-world debates about distributive justice. (shrink)

Are inequalities of income created by the free market just? In this book Serena Olsaretti examines two main arguments that justify those inequalities: the first claims that they are just because they are deserved, and the second claims that they are just because they are what free individuals are entitled to. Both these arguments purport to show, in different ways, that giving responsible individuals their due requires that free market inequalities in incomes be allowed. Olsaretti argues, however, that neither argument (...) is successful, and shows that when we examine closely the principle of desert and the notions of liberty and choice invoked by defenders of the free market, it appears that a conception of justice that would accommodate these notions, far from supporting free market inequalities, calls for their elimination. Her book will be of interest to a wide range of readers in political philosophy, political theory and normative economics. (shrink)

In this article, I consider whether there are values intrinsic to development theory and practice that are dubious in light of a characteristically African ethic. In particular, I focus on what a certain philosophical interpretation of the sub-Saharan value of communion entails for appraising development, drawing two major conclusions. One is that a majority of the criticisms that have been made of development by those sympathetic to African values are weak; I argue that, given the value of communion, development should (...) not be rejected because it is essentially, say, overly materialistic and scientistic, or insufficiently spiritual and local. The second conclusion, however, is that three criticisms of development are strong from the perspective of Afro-communalism and are particularly powerful when set in that context. I argue that development theory and practice are characteristically anthropocentric, individualist and technocratic, and that a reading of the sub-Saharan value of communion provides a unitary foundation for rejecting these features and for grounding an alternative, more relational approach to social progress and to what justice demands from the West in relation to Africa. (shrink)

This book examines the theoretical foundations of order ethics and discusses business ethics problems from an order ethics perspective. Order ethics focuses on the social order and the institutional environment in which individuals interact. It is a well-established paradigm in European business ethics. The book contains articles written by leading experts in the field and provides both a concise introduction to order ethics and short summary articles homing in on specific aspects of the order-ethical paradigm. It presents contributions describing fundamental (...) concepts, historical roots, and the economic, social, and philosophical background of the theory. The second part of the handbook focuses on the theory's application in business, society, and politics, casting new light on an array of topics that loom large in contemporary ethical discourse.​. (shrink)

In this article the author considers the essential connection between liberal individualism, reforms and initiativeness. The author shows that liberal individualism has nothing in common with robinsonade, egoism and narrow view upon the things. On the contrary, it sets free the initiativeness of people and makes them active in social, economic and civil spheres. Consequently, if Ukrainians want the decentralization in all the spheres of life, then it is necessarily to realize the ideas of classical liberalism: liberty, equality and justice. (...) For the western countries of the later capitalism it is the passed way. Therefore in the article the author also considers the obstacles and the perspectives of the realization of ideas’ classical liberalism in Ukraine. (shrink)

Economic pressures, mounting environmental, security and health requirements, are all critical factors that shape economic action. With regard to environmental protection, an economic entity acting as homo oeconomicus finds himself in a situation resembling a prisoner’s dilemma. Signposts for a possible resolution of this dilemma include an environmental management system, a system of environmental law based on the principles of environmental ethics, and a new conception of human nature.

Le but de ce recueil est d’offrir des commentaires accessibles et introductifs aux textes classiques qu’ils accompagnent, en ouvrant des perspectives de discussion sur le thème du capitalisme. C’est en ce sens qu’Emmanuel Chaput lance le débat en commentant le texte de Pierre-Joseph Proudhon, « Qu’est-ce que la propriété ? ». Les textes de Karl Marx ne sont bien sûr pas laissés pour compte : Samuel-Élie Lesage s’engage fermement dans cette voie en discutant L’idéologie allemande de Karl Marx, Christiane Bailey (...) nous offre d’approcher différemment l’œuvre marxienne en abordant son traitement de la question animale dans des extraits du Manifeste du parti communiste et du Travail salarié et capital, et Mathieu Joffre-Lainé nous présente une analyse fine des questions proprement économiques du Capital. Abordant les alternatives au capitalisme dans la pensée de Léon Bourgeois, Éliot Litalien commente La Solidarité et Simon-Pierre Chevarie-Cossette s’attaque à l’analyse de l’Essai d’une philosophie de la solidarité. Enfin, en liant capitalisme, patriarcat et pouvoir politique, Tara Chanady propose une lecture du texte Du mariage et de l’amour de Emma Goldman. La conclusion de Marie-Eve Jalbert se situe dans une perspective contemporaine et critique en décortiquant la critique du socialisme avancée par Friedrich A. Hayek. (shrink)

Własność prywatna nie jest żadnym naturalnym uprawnieniem, ale prawną konwencją zdefiniowaną przez system podatkowy. Stopień ingerencji w rzekomo naturalne prawo własności nie może być podstawą oceniania systemów podatkowych, bo sama własność jest wytworem takich systemów. Podatki nie odbierają nam własności, tylko umożliwiają jej istnienie.

In this retrospective for Ethics, I discuss H.M. Oliver’s “Established Expectations and American Economic Policies.” This article, by a then-modestly-famous economist, has been ignored (no citations) since its 1940 publication. Yet it bears directly on a normative problem at the intersection of ethics and economics that challenges today’s policymakers but has received comparatively little philosophical attention: how should we balance potentially desirable institutional change against the disruption of established expectations? -/- Oliver details how the principle of fulfilling established expectations cuts (...) across political lines. Conservatives, he observes, criticized inflation for disrupting expectations, and demanded the protection of established corporations. New Deal progressives achieved “the safeguarding of the economic positions of certain important sections of the American people” (104) via statutes designed to protect income and homeownership status. And labor leaders lobbied for the preservation of occupational status. Oliver criticizes these demands on two grounds. First, they are noncompossible: they can’t simultaneously be fulfilled. Second, they are economically inefficient. He concludes that “in a modern dynamic economy, the preservation of status is not and cannot be a feasible criterion of economic justice” (107). -/- I argue that Oliver accurately recognizes both the wide endorsement and the moral ill-foundedness of fulfilling expectations. However, I criticize Oliver’s belief in the noncompossibility of expectations. The established expectations of the wealthy, middle-class homeowners and retirees, and current workers can all be maintained, but at the price of constricting the opportunities of new graduates, immigrants, and the poor—all groups yet to develop settled expectations. This insight renders the protection of expectations not merely inefficient but also unjust. (shrink)

Is the minimum wage ethically justifiable? In this chapter, we attempt to answer this question from an order-ethical perspective. To this end, we develop two simple game theoretical models for different types of labour markets and derive policy implications from an order-ethical viewpoint. Our investigation yields a twofold conclusion. Firstly, order ethicists should prefer a tax-funded wage subsidy over minimum wages, if they assume that labour markets are perfectly competitive. Secondly, order ethics suggests that the minimum wage can be ethically (...) justified if employers have monopsony power in the wage setting process. As it turns out, then, order ethics neither favours nor disfavours the minimum wage. Rather, it implies conditions under which this form of labour market regulation is justified and, hence, allows empirical science to play a great role in answering the ethical questions that arise in the context of the minimum wage debate. This illustrates one of order ethics’ strengths, viz. the fact that it tends to de-ideologize the debate about ethical issues. (shrink)

We offer a concise introduction to the methodology of order-ethics and highlight how it connects aspects of economic theory and, in particular, game theory with traditional ethical considerations. The discussion is conducted along the lines of five basic propositions, which are used to characterize the methodological approach of order ethics.

Journal of Economic Methodology, Volume 19, Issue 2, Page 159-163, June 2012.

In Globalization and Justice, Kai Nielsen brings his distinctive and passionate voice and considerable philosophical abilities to one of the pressing issues of our time: Is justice possible in our increasingly globalized world? Nielsen argues that it is, though the demands of justice are great, the challenges substantial, and the odds very long. Without a clear philosophical understanding of justice and a firm and focused political will, Nielsen maintains, we are likely to have globalization without justice. This is surely correct.

A claim that certain purely private matters should be beyond the reach of society's laws, moral rules, and other customs is central to the distinctive liberalism of John Stuart Mill. On Liberty, perhaps the most eloquent defense of individual liberty ever written, laments the hostility allegedly displayed in modern mass societies toward “the right of each individual to act [in private matters] as seems good to his judgement and inclinations”. In Mill's view, a free society must design its institutions with (...) due regard for what he terms “individuality.” That is, public authority, whether in the form of law, customary opinion, or economic power, must be self-limiting so that it does not interfere with the rights of individuals to choose as they like with respect to such private concerns as religious faith, reading materials, living companions, and consumption of drugs and alcohol. Individuals and voluntary groups should be permitted to do whatever they prefer within their private spheres even if everyone else in society dislikes what they do, is annoyed by them, and actually chooses not to be around them or to befriend them. (shrink)

In 1970 Amartya Sen exposed an apparent antinomy that has come to be known as the Paradox of the Paretian Libertarian. Sen introduced his paradox by establishing a simple but startling theorem. Roughly put, what he proved was that if a mechanism for selecting social choice functions satisfies two standard adequacy conditions, there are possible situations in which it will violate either the very weak libertarian precept that every individual has at least some rights or the seemingly innocuous Paretian principle (...) that an option should be judged unacceptable if there is an available alternative that everyone prefers to it. Many economists and philosophers have proposed solutions to Sen's problem, but there is no general consensus on what solution is correct. In the present paper I argue that Sen's original theorem fails to establish the existence of any conflict between libertarianism and Paretianism. Furthermore, I contend that Sen has misinterpreted certain other theorems which he has used to defend the existence of a paradoxical conflict between these two doctrines. In general, I try to show that whenever Sen posits a Paretian-libertarian conflict to explain an apparently troubling result in social choice theory, the difficulty can be better dealt with either by claiming that the theorem in question imposes overly strong background constraints on the form of social choice functions or by claiming that it relies on an unacceptable construal of individual rights. (shrink)

Journal of Economic Methodology, Volume 19, Issue 2, Page 165-167, June 2012.

I have been fortunate in having the critics that I had at the Pasadena Session on my Globalization and Justice. All three of them understood me very well, reported me accurately and criticized me fairly and perceptively. An author could not ask for more. In some places I will, as a result of their criticisms, have to modify or clarify what I say, but in other places, and indeed very central places, I remain intransigent and hold my ground, I hope (...) not out of pigheadedness, a hardening of the intellectual arteries or out of a blinkered partisanship. (shrink)

For over half a century in more than a dozen books and 600 philosophical articles Kai Nielsen has developed and defended a radically egalitarian theory of social justice as well as a political vision demanding a democratic, humane form of socialism and, on an international level, a federative world socialist government embodying these values. In Globalization and Justice Nielsen applies his acute analytical abilities and his substantive theories and views to the present ongoing reality of corporate, capitalist globalization, arguing that (...) this sort of globalization is unjust in that it further disadvantages the developing world. He then argues for an alternative sort of globalization, a process that he believes could and should have, as its end goal, a democratic and humane socialist government and society on a world-wide scale. Along the way he compares his theory and vision to those of such other major contemporary thinkers as John Rawls, Jürgen Habermas, G.A. Cohen, and Richard Rorty representing, respectively, liberal egalitarianism, critical theory, analytical Marxism , and post-modern eclecticism. (shrink)

Wherever a government or state is concerned with the welfare of its citizens, there will probably also exist policies which compel the individual citizen to undertake or abstain from activities which affect that citizen alone. The set of theories behind such policies is collectively known as ‘paternalism’. It is not hard to understand why this term has developed strong pejorative overtones. Policies of this type appear to offend a fundamental tenet of liberal societies: namely, that the individual is best placed (...) to know what is in his or her interests. Paternalistic policies imply, and are concerned with correcting, failures of precisely this kind of judgement. And yet, at the same time, there is a popular consensus that compelling people to wear a seat belt when driving a car is a reasonable restriction of personal liberty. Paternalism may be difficult to accept in principle, but it is equally difficult to avoid in practice. Not surprisingly, the literature reveals a long heritage of debate in a wide range of academic disciplines. This debate reveals a failure to make progress in two areas in particular. First, analyses of paternalism often confuse policies which are actually concerned with correcting failures of market exchange — in particular, those concerned with insufficient or imperfect information — with those which are genuinely paternalistic. One objective of this paper will be to clarify the difference between these two kinds of policy. (shrink)

Modern law and economics received much of its impetus from Ronald Coase's analysis in ‘The Problem of Social Cost,’ and a goodly amount of that comes from the Coase theorem, which states that, absent transaction costs, externalities will be efficiently resolved through bargaining. The fact that the analysis that came to be codified in the Coase theorem was an exercise in pure fiction on Coase's part did not deter the erection of a substantial edifice of positive and normative analysis on (...) this foundation, nor, for that matter, has subsequent elaboration of Coase's intent done anything to abate the interest in the theorem and its implications. (shrink)