What is the relation between monetary policy and inequalities in income and wealth? This question has received insufficient attention, especially in light of the unconventional policies introduced since the 2008 financial crisis. The article analyzes three ways in which the concern central banks show for inequalities in their official statements remains incomplete and underdeveloped. First, central banks tend to care about inequality for instrumental reasons only. When they do assign intrinsic value to containing inequalities, they shy away from trade-offs with (...) the standard objectives of monetary policy that such a position entails. Second, central banks play down the causal impact monetary policy has on inequalities. When they do acknowledge it, they defend their actions by claiming that it is an unintended side effect, that it is temporary, and/or that any alternative policy would fare even worse. The article appeals to the doctrine of double effect to criticize these arguments. Third, even if one accepts that inequalities should be contained and that today’s monetary policies exacerbate them, is it both desirable and feasible to make containing inequalities part of the mandate of central banks? The article analyzes and rejects three attempts on the part of central banks to answer this question negatively. (shrink)

Rich people stash away trillions of dollars in tax havens like Switzerland, the Cayman Islands, or Singapore. Multinational corporations shift their profits to low-tax jurisdictions like Ireland or Panama to avoid paying tax. Recent stories in the media about Apple, Google, Starbucks, and Fiat are just the tip of the iceberg. There is hardly any multinational today that respects not just the letter but also the spirit of tax laws. All this becomes possible due to tax competition, with countries strategically (...) designing fiscal policy to attract capital from abroad. The loopholes in national tax regimes that tax competition generates and exploits draw into question political economic life as we presently know it. They undermine the fiscal autonomy of political communities and contribute to rising inequalities in income and wealth.Building on a careful analysis of the ethical challenges raised by a world of tax competition, this book puts forward a normative and institutional framework to regulate the practice. In short, individuals and corporations should pay tax in the jurisdictions of which they are members, where this membership can come in degrees. Moreover, the strategic tax setting of states should be limited in important ways. An International Tax Organisation should be created to enforce the principles of tax justice.The author defends this call for reform against two important objections. First, Dietsch refutes the suggestion that regulating tax competition is inefficient. Second, he argues that regulation of this sort, rather than representing a constraint on national sovereignty, in fact turns out to be a requirement of sovereignty in a global economy. The book closes with a series of reflections on the obligations that the beneficiaries of tax competition have towards the losers both prior to any institutional reform as well as in its aftermath. (shrink)

How much inequality does market interaction generate? The answer to this question partly depends on the level of competition among economic agents. Yet, in their normative analysis of the market, theories of distributive justice focus on individual characteristics such as talents as determinants of income, and tend to ignore structural features such as competition. Economists, on the other hand, dispose of the conceptual tools to assess the distributive impact of competition, but their analysis is usually limited to allocative efficiency. Part (...) I of the article distinguishes my argument from conventional perspectives on income inequality and redistribution. Whereas the latter propose either to redistribute income once the market interaction has taken place or to adjust the initial holdings of market participants, I focus on the distributive impact of the institutional structure of the market itself. Part II outlines the ways in which various forms of competition affect distribution. My objective here is descriptive in nature, but shows that a normative evaluation of the market has to take seriously the distributive impact of competition. This impact can be broken down into the analysis of three overlapping groups of economic agents, namely consumers, workers, and capital owners. Consumers potentially gain from competition in the form of lower prices, but these gains are only realized if competition does not put pressure on their work income at the same time. Unless competition squeezes profits unusually hard, capital owners tend to benefit from competition. (shrink)

What explains and justifies factor shares, that is, the returns that workers and capital owners receive on their contribution to economic production? Arguably, neither economic theory nor theories of distributive justice give a satisfactory answer to this question. One important explanation of this shortcoming, this paper argues, lies in the fact that they fail to take the full measure of the phenomenon of increasing returns from specialisation or, as economist often call it, of total factor productivity. This paper aims to (...) fill this gap by asking what follows for distributive justice from taking this phenomenon seriously. The paper proceeds in four steps. First, it demonstrates in detail how a sophisticated division of labour creates a cooperative surplus. Second, it puts forward a counterfactual experiment to measure this surplus. Third and crucially, the paper argues that justice requires an equal division of this surplus and that this idea turns out to be a surprisingly ecumenical one. The final section defends the equal surplus proposal against two objections, namely the suggestion that an equal distribution of the cooperative surplus is either politically unfeasible or economically inefficient. (shrink)

In their justification of individual entitlements, libertarians appeal to the concept of self-ownership. This paper argues that taking into account the division of labour in society calls for a fundamental reassessment of the normative implications of self-ownership. How should the benefits from division of labour—in other words, how should the co-operative surplus—be distributed? On the assumption that the parties to the division of labour are interdependent, and that this interdependence is mutual and of the same degree, I argue for an (...) equal distribution of the co-operative surplus. In form, my argument bears similarities to the left-libertarian position that calls for an equal distribution of natural resources. Despite its radically egalitarian implications, an equal distribution of the co-operative surplus remains a libertarian principle. (shrink)

Recent trade negotiations such as TTIP include investor protection clauses. Against the background of an analysis of the case for trade, the paper asks whether such clauses can be justified from a normative perspective. More specifically, what is the impact of investor protection on the domestic distribution of the gains from trade between labour and capital, and how should we assess this impact from the perspective of justice? In order to answer this question, the paper develops a series of ideal-type (...) scenarios that reflect the consequences of investor protection on employment on the one hand, and on the distributive conflict between labour and capital on the other. While no claim is made which of these scenarios corresponds to TTIP or other trade agreements, they provide a useful normative framework to analyse such agreements. (shrink)

Theories of justice rely on a variety of criteria to determine what social arrangements should be considered just. For most theories, the distribution of financial resources matters. However, they take the existence of money as a given and tend to ignore the way in which the creation of money impacts distributive justice. Those with access to collateral are favoured in the creation of credit or debt, which represents the main form of money today. Appealing to the idea that access to (...) credit confers freedom, and that inequalities in this freedom are morally arbitrary, this article shows how the advantage to those with collateral plays out in different ways in today’s economy. The article identifies several forms of bias inherent in money creation, and its subsequent destruction: loans from commercial banks to individuals and corporations, interbank lending, lending from central banks to commercial banks, and selective bail-outs by central banks. These are not mere inequalities: they are unjust since alternative designs of the financial architecture exist that would significantly reduce them. The paper focuses on one possible reform with the potential to address several of the types of bias identified, namely the separation of money creation from private bank credit. (shrink)

What does it take for a corporation to act in a socially responsible manner? It would seem that respecting the fiscal duties imposed by the state should be high on the list. Compared to standard accounts of corporate social responsibility, this requirement seems relatively weak. The present paper argues that such a minimalist CSR turns out to be quite demanding. More specifically, I argue that for one particular sector, namely the tax planning industry, it would be utopian to expect its (...) members to adopt even such a minimalist CSR. Given the business model of the tax planning industry and the motivations that flow from it, state intervention and enforceable rules are required to ensure socially responsible corporate conduct in this industry. (shrink)

Widespread tax evasion and avoidance have recently led to both significant reforms of international tax governance and increased attention from theorists of global tax justice. Against the background of an analysis of the double challenge of effectiveness and distribution facing the taxation of multinational enterprises, this paper puts forward a taxonomy of recent contributions of the tax justice literature. This taxonomy not only opens up an original angle of interpretation on global tax justice, but also provides a vantage point from (...) which to evaluate recent reforms by the Organisation for Economic Co-operation and Development. (shrink)

Journal of Political Philosophy, EarlyView.

Global income inequalities are met with increasing calls for direct supranational redistribution. This article argues that from the perspective of political feasibility, this approach should not be prioritised. We use the example of tax competition to show that supranational regulation that stops short of direct redistribution has better chances of being implemented. Moreover, as the case of tax competition illustrates, such regulation can help to shore up the capacity of nation states to redistribute internally, which indirectly tends to reduce global (...) inequalities, too. Against this background, we formulate the conditional subsidiarity principle of redistribution. It states that when the case for direct supranational redistribution is built on the alleged incapacity of the state to redistribute due to the pressures of globalisation, our first instinct should be regulatory reform in order to restore this capacity. Finally, the article asks whether two prominent proposals for global taxation – the global resource dividend and the financial transaction tax – pass the test of the conditional subsidiarity principle. (shrink)

This paper argues that the standard characterisation of the equity-efficiency trade-off as set out in this symposium by Joe Heath overstates the tension between these two values. The reason lies in the fact that economists tend to take individual labour supply preferences as given, which leads to a superficial analysis of the concepts of reservation wage and of economic rent. The paper suggests that we should instead think of reservation wages as variable and as influenced by social norms. Social norms (...) play a double role in this context. First, they represent a constitutive element of market competition; second, they can be a determinant of income inequalities. From this perspective, a certain share of high reservation wages sustained by contingent inegalitarian social norms should count as economic rent. The last section of the paper strengthens this conclusion further by drawing a parallel between expensive tastes in consumption and a certain class of high reservation wages. To the extent that the latter are underpinned by social norms rather than efficiency considerations, not paying them is both just and efficient. (shrink)

What do we owe participants in collective pension plans in terms of socially responsible investment (SRI)? This paper draws into question current conventional wisdom on SRI, which considers investor engagement a more effective strategy than divestment to change morally problematic corporate behaviour. More fundamentally, in light of reasonable disagreement about the objective of SRI, the paper argues that participants in collective pension plans are owed some kind of control over their investments. The final section considers four different institutional arrangements to (...) respect this requirement in practice, ranging from democratic decision procedures to the availability of SRI alternatives. (shrink)

RÉSUMÉ: La notion de propriété de soi présuppose la définition des droits de propriété sur les ressources externes que le libertarisme de gauche limite habituellement aux ressources naturelles. Or, dans une économie spécialisée, la propriété de soi doitégalement être complétée par une définition des droits de propriété sur le surplus coopératif. S'il est cohérent, pour un libertarien de gauche, de considérer le surplus coopératif comme ressource externe et de le distribuer d'une manière égale, on doit en outre observer qu'une théorie (...) de la justice doit se prononcer sur les questions distributives dans plusieurs contextes. Articuler les différences entre ces contextes nous permet de préciser la relation que le libertarisme de gauche entretient avec d'autres théories de la justice.ABSTRACT: Any substantive notion of self-ownership presupposes well-defined property rights over external resources. Left-libertarians usually limit this category to natural resources. I argue that in a specialized economy, substantive self-ownership equally needs to be complemented by a definition of property rights to the cooperative surplus. The natural way for left-libertarianism to provide such a definition is to view the cooperative surplus as an external resource and to distribute it equally. The second part of the article makes the general point that a complete theory of justice needs to take a stance on distribution in various contexts. Articulating the differences between these contexts allows us to gain a better understanding of how left-libertarianism relates to other theories of justice. (shrink)

This is Volume 9 of Oxford Studies in Political Philosophy. It contains papers on democracy, the law, political liberalism, voting, social experimentation, state neutrality, equality and incentives, self-ownership, drugs and prostitution, and Lincoln. Chapters include: “Challenging Democratic Commitments: On Liberal Arguments for Instrumentalism About Democracy” (Daniel Viehoff); “Emotional Abuse and the Law” (Elizabeth Brake); “Practical Political Liberalism” (Caleb Perl); “Beyond the Voting Debate” (Brookes Brown); “Social Experimentation in an Unjust World” (Jacob Barrett and Allen Buchanan); “State Neutrality and the Dismantling (...) of the Gendered Division of Labour” (Anca Gheaus); “If It’s Not Your Talent, How Come You’re Getting an Incentive?” (Peter Dietsch); “(Owning) our Bodies, (Owning) our Selves?” (Sean Aas); “Self-Sovereignty, Drugs, and Prostitution” (Peter de Marneffe); “Lincoln as Political Philosopher” (William A. Edmundson). (shrink)

How do we go about weighing evidence, testing hypotheses, and making inferences? According to the model of _Inference to the Best Explanation_, we work out what to infer from the evidence by thinking about what would actually explain that evidence, and we take the ability of a hypothesis to explain the evidence as a sign that the hypothesis is correct. In _Inference to the Best Explanation_, Peter Lipton gives this important and influential idea the development and assessment it deserves. (...) The second edition has been substantially enlarged and reworked, with a new chapter on the relationship between explanation and Bayesianism, and an extension and defence of the account of contrastive explanation. It also includes an expanded defence of the claims that our inferences really are guided by diverse explanatory considerations, and that this pattern of inference can take us towards the truth. This edition of _Inference to the Best Explanation_ has also been updated throughout and includes a new bibliography. (shrink)

"How do we go about weighing evidence, testing hypotheses and making inferences? According to the model of 'inference to the Best explanation', we work out what to inter from the evidence by thinking about what would actually explain that evidence, and we take the ability of a hypothesis to explain the evidence as a sign that the hypothesis is correct. In inference to the Best Explanation, Peter Lipton gives this important and influential idea the development and assessment it deserves." (...) "The second edition has been substantially enlarged and reworked, with a new chapter on the relationship between explanation and Bayesianism, and an extension and defence of the account of contractive explanation. It also includes an expanded defence of the claims that our inferences really are guided by diverse explanatory considerations, and that this pattern of inference can take us towards the truth. This edition of Inference to the Best Explanation has also been updated throughout and incudes a new bibliography."--BOOK JACKET. (shrink)

The relationship of part to whole is one of the most fundamental there is; this is the first and only full-length study of this concept. This book shows that mereology, the formal theory of part and whole, is essential to ontology. Peter Simons surveys and criticizes previous theories, especially the standard extensional view, and proposes a more adequate account which encompasses both temporal and modal considerations in detail. 'Parts could easily be the standard book on mereology for the next (...) twenty or thirty years.' Timothy Williamson, Grazer Philosophische Studien. (shrink)

The purpose of this article is to develop a conception of death with dignity and to examine whether it is vulnerable to the sort of criticisms that have been made of other conceptions. In this conception “death” is taken to apply to the process of dying; “dignity” is taken to be something that attaches to people because of their personal qualities. In particular, someone lives with dignity if they live well (in accordance with reason, as Aristotle would see it). It (...) follows that health care professionals cannot confer on patients either dignity or death with dignity. They can, however, attempt to ensure that the patient dies without indignity. Indignities are affronts to human dignity, and include such things as serious pain and the exclusion of patients from involvement in decisions about their lives and deaths. This fairly modest conception of death with dignity avoids the traps of being overly subjective or of viewing the sick and helpless as “undignified”. (shrink)

Do we have introspective access to our own thoughts? Peter Carruthers challenges the consensus that we do: he argues that access to our own thoughts is always interpretive, grounded in perceptual awareness and sensory imagery. He proposes a bold new theory of self-knowledge, with radical implications for understanding of consciousness and agency.

[1] The rise of modern paganism.--v. 2. The science of freedom.

The historian Ibn Khaldūn (d. 1406) is most often treated by historians of philosophy as part of the story of political philosophy in the Islamic world. While this is perfectly legitimate, it may be misleading when it comes to the question of the method he proposes for the historian. This paper argues that that method is in fact based on a different branch of (Aristotelian) science: natural philosophy. After rendering this proposition initially plausible by noting frequent references to "nature" in (...) the _Muqaddima_, the paper discusses a number of parallels between natural philosophy and history as Ibn Khaldūn conceives it. Ultimately it is suggested that this method is legitimated insofar as history is for Ibn Khaldūn a study of human nature. (shrink)

This book is a comprehensive development and defense of one of the guiding assumptions of evolutionary psychology: that the human mind is composed of a large number of semi-independent modules. The Architecture of the Mind has three main goals. One is to argue for massive mental modularity. Another is to answer a 'How possibly?' challenge to any such approach. The first part of the book lays out the positive case supporting massive modularity. It also outlines how the thesis should best (...) be developed, and articulates the notion of 'module' that is in question. Then the second part of the book takes up the challenge of explaining how the sorts of flexibility and creativity that are distinctive of the human mind could possibly be grounded in the operations of a massive number of modules.Peter Carruthers's third aim is to show how the various components of the mind are likely to be linked and interact with one another - indeed, this is crucial to demonstrating how the human mind, together with its familiar capacities, can be underpinned by a massively modular set of mechanisms. He outlines and defends the basic framework of a perception / belief / desire / planning / motor-control architecture, as well as detailing the likely components and their modes of connectivity. Many specific claims about the place within this architecture of natural language, of a mind-reading system, and others are explained and motivated. A number of novel proposals are made in the course of these discussions, one of which is that creative human thought depends upon a prior kind of creativity of action.Written with unusual clarity and directness, and surveying an extensive range of research in cognitive science, this book will be essential reading for anyone with an interest in the nature and organization of the mind. (shrink)