Rawls’ theory is about prudence rather than justice. It is about the kind of political structure on which rational people would agree if they were preparing for the worst. Other strategies, such as confining redistribution to upholding a safety net, might also be plausible. Rawls’ theory is Georgism in persons: the income from individual abilities is regarded as if it is at the disposal of the collective and could be taxed as rent. This goes against the strong moral intuition (...) of self-ownership. However, Rawls’ question, where the worst off are as well off as they can be, is interesting. According to the Index of Economic Freedom, it actually may be under relatively unfettered capitalism. Unlike Rawls, Piketty is chiefly worried about the rich, seeking to impose confiscatory taxes on them. But the rich are not a fixed, unchangeable group of people who can effortlessly watch their capital accumulate. Capital is precarious, as is vividly illustrated in Balzac’s novel Père Goriot which Piketty quotes. Different as the approaches of Rawls and Piketty are, both of them agree that their ideal society has to be closed: It must become ‘socialism in one country.’. (shrink)

Society, based on contract and voluntary exchange, is evolving, but remains only partly developed. Goods and services that meet the needs of individuals, such as food, clothing, and shelter, are amply produced and distributed through the market process. However, those that meet common or community needs, while distributed through the market, are produced politically through taxation and violence. These goods attach not to individuals but to a place; to enjoy them, individuals must go to the place where they are. Land (...) owners, all unknowingly, distribute such services contractually as they rent or sell sites. Rent or price is the market value of such services, net after disservices, as they affect each site. By distributing occupancies to those who can pay the highest price, land owners’ interests align with those of society. Without this, tenure would be precarious—by force or favor of politicians. The 18th-century separation of land from state, so little studied by historians, permitted the development of modern property in land. This change is perhaps “the greatest single step in the evolution of Society the world has ever seen.” When land owners realize that they market community services, they will organize to produce and administer them as well, and society will be made whole. (shrink)