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)

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)

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)

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)

Journal of Political Philosophy, EarlyView.

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)

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)

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)

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)

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)

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)

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)

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)

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)

For many years—and with some energy since Laudan’s “Confutation of Convergent Realism” —the scientific realist has sought to accommodate examples of false-yet-successful theories in the history of science. One of the most prominent strategies is to identify ‘success fueling’ components of false theories that themselves are at least approximately true. In this article I develop both sides of the debate, introducing new challenges from the history of science as well as suggesting adjustments to the divide et impera realist strategy. A (...) new ‘recipe’ for the prospective identification of working/idle posits is considered. (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)

In this book, Peter Achinstein proposes and defends several objective concepts of evidence. He then explores the question of whether a scientific method, such as that represented in the four "Rules for the Study of Natural Philosophy" that Isaac Newton invoked in proving his law of gravity, can be employed in demonstrating how the proposed definitions of evidence are to be applied to real scientific cases.

Generalization of the standard behavior longitudinal genetic factor model for the analysis of interindividual phenotypic variation to a genetic state space model for the analysis of intraindividual variation enables the possibility to estimate subject-specific heritabilities.

Working in constructive set theory we formulate notions of constructive topological space and set-generated locale so as to get a good constructive general version of the classical Galois adjunction between topological spaces and locales. Our notion of constructive topological space allows for the space to have a class of points that need not be a set. Also our notion of locale allows the locale to have a class of elements that need not be a set. Class sized mathematical structures need (...) to be allowed for in constructive set theory because the powerset axiom and the full separation scheme are necessarily missing from constructive set theory. We also consider the notion of a formal topology, usually treated in Intuitionistic type theory, and show that the category of set-generated locales is equivalent to the category of formal topologies. We exploit ideas of Palmgren and Curi to obtain versions of their results about when the class of formal points of a set-presentable formal topology form a set. (shrink)

We compare astronomers' removal of Pluto from the listing of planets and psychiatrists' removal of homosexuality from the listing of mental disorders. Although the political maneuverings that emerged in both controversies are less than scientifically ideal, we argue that competition for "scientific authority" among competing groups is a normal part of scientific progress. In both cases, a complicated relationship between abstract constructs and evidence made the classification problem thorny.

Theories of explanation are characterized as being either pragmatic or non-pragmatic, without a clear sense of what this is supposed to mean. The present paper offers a definition of a "pragmatic explanation-sentence", and in terms of this, of a "pragmatic theory of explanation". It is argued that van Fraassen's theory of explanation, despite claims to the contrary, is not genuinely pragmatic. By contrast, the author's own "illocutionary" theory is pragmatic. Attention is devoted particularly to sentences of the form "E is (...) a good explanation of q", which, it is urged, are pragmatic in a strong sense. In defense of this claim, and of the advantages of a pragmatic account generally, appeal is made to Rutherford's 1911 subatomic explanation of the results of his scattering experiments. Implications of a pragmatic theory are drawn for the debate between realists and anti-realists and absolutists and relativists. (shrink)

This chapter shows how al-Kindī interweaves ideas from Greek cosmology to give a theory that can explain the efficacy of astrology and how God’s providence is dispersed by means of heavenly influence. A concrete example is found in al-Kindī’s works on meteorology, since he thinks that weather is produced by celestial causation. The mechanics of this causation are explained differently in different works, which leads to a consideration of the authenticity of On Rays, which is ascribed to al-Kindī, and its (...) place in his corpus. Finally, the chapter considers whether al-Kindī’s account commits him to determinism, and whether he thinks universal causal determinism is compatible with human freedom. (shrink)

_A beautifully written exploration of religion’s role in a secular, modern politics, by an accomplished scholar of critical theory__ “Rich in historical background, illuminating in its comparative perspective, yet focused on the question of secularization and the normative resources of modernity—a joy to read.”—Maeve Cooke, University College Dublin__ “Gordon writes with a controlled power, elegance, simplicity, and clarity that is a rare pleasure.”—Max Pensky, Binghamton University_ _Migrants in the Profane _takes its title from an intriguing remark by Theodor W. Adorno, (...) in which he summarized the meaning of Walter Benjamin’s image of a celebrated mechanical chess-playing Turk and its hidden religious animus: “Nothing of theological content will persist without being transformed; every content will have to put itself to the test of migrating in the realm of the secular, the profane.” In this masterful book, Peter Gordon reflects on Adorno’s statement and asks an urgent question: Can religion offer any normative resources for modern political life, or does the appeal to religious concepts stand in conflict with the idea of modern politics as a domain free from religion’s influence? In answering this question, he explores the work of three of the Frankfurt School’s most esteemed thinkers: Walter Benjamin, Max Horkheimer, and Theodor W. Adorno. His illuminating analysis offers a highly original account of the intertwined histories of religion and secular modernity. (shrink)

Even among critics not particularly concerned with detective fiction, Dashiell Hammett’s fourth novel, The Glass Key , is famous for carrying the so-called objective method to almost obsessive lengths: we are never told what the characters are thinking, only what they do and look like. Anyone’s decisions about anyone else’s intentions are interpretive decisions, dependent on correct presuppositions—on having the right interpretive key. The novel’s title, in part, refers to this kind of key. Ned Beaumont, the protagonist, has to decide (...) how to govern his relationship with Janet Henry; one of his major clues to her mind is a dream that she tells him, a dream that climaxes in an attempt to lock a door against an onslaught of snakes. Dream interpretation is difficult enough to begin with, and Janet Henry compounds that difficulty by telling the dream twice. In the first version, the attempt to lock the door succeeds; in the second, the key turns out to be made of glass and it shatters. Ned Beaumont, in deciding which dream to us as his key, chooses the second —but it is a choice based on an intuitive mix of experience and faith, knowledge and hunch.A reader often faces the same difficulties that Ned Beaumont does. Reading a book, too, requires us to make a choice about what key to use to unlock it, and that choice must often be based on an intuitive mix of experience and faith, knowledge and hunch. For example, as I shall show, the experience of reading certain texts—not all, but a significant number of them—is problematic because it depends in part on whether the reader has chosen, before picking them up, to approach them as popular or serious. My argument hinges on two prior claims. First, I contend that one way of defining genres is to consider them as bundles of operations which readers perform in order to recover the meanings of texts rather than as sets of features found in the texts themselves. To put this crudely but more modishly, genres can be viewed as strategies that readers use to process texts. Second, I argue that popular literature and serious literature can be viewed as broad genre categories. Peter J. Rabinowitz is associate professor of comparative literature at Hamilton College. He is currently working on a book about literary conventions and is also active as a music critic for such publications as Fanfare and Ovation. His previous contributions to Critical Inquiry are “Truth in Fiction: A Reexamination of Audiences” and “Who Was That Lady? Pluralism and Critical Method”. (shrink)