This article examines inequality from a framework of justice that attends to the socially situated nature of market activity, including exchange. I argue that accounts of unsituated exchange—accounts of market exchange that abstract from social situations, such as philosopher Robert Nozick’s influential libertarian account of justice—overlook various factors that contribute to growing economic inequality in contemporary society. Analyses of market exchange must incorporate the role of “third parties” who play a role in shaping and/or who (...) are affected by economic transactions. The involvement of these additional parties, including the government and future generations, is not interference but, instead, an integral part of the economic and moral accounting of exchange. An approach to justice and inequality which embeds exchange within multiple dimensions of economy and society is needed; the latter part of this article traces such a socially situated approach. (shrink)

Mutually beneficial exchanges in markets can be exploitative because one party takes advantage of an underlying injustice. For instance, employers of sweatshop workers are often accused of exploiting the desperate conditions of their employees, although the latter accept the terms of their employment voluntarily. A weakness of this account of exploitation is its tendency for over-inclusiveness. Certainly, given the prevalence of global and domestic socioeconomic inequalities, not all exchanges that take place against background injustices should be considered exploitative. (...) This paper offers a framework to identify exploitation in mutually beneficial exchange, focusing on the case of sweatshop labor. It argues that an employer can be viewed as taking unfair advantage of an underlying injustice if and only if the employer’s surplus from the exchange in the unjust state of affairs exceeds the surplus it could maximally obtain in a just state of affairs. The paper illustrates the applicability of this framework using three different conceptions of justice and argues that it is superior to microlevel accounts of exploitation that regard background justice as irrelevant. The paper concludes by describing some normative implications that follow from judging an exchange exploitative. (shrink)

This book develops a liberal theory of justice in exchange. It identifies the conditions that market exchanges need to fulfill to be just. It also addresses head-on a consequentialist challenge to existing theories of exchange, namely that, in light of new harms faced at the global level, we need to consider the combined consequences of millions of market exchanges to reach a final judgment about whether some individual exchange is just. The author argues that, even (...) if we accept this challenge, the effect of it is minimal. For different reasons, normatively problematic collective market outcomes like externalities, monopolies, violations of the Lockean proviso, inequality, and commodification do not pose particular problems to the justice of market exchanges. He outlines the various conditions a market exchange needs to fulfill to be considered just from a liberal background and in light of the new harms. Ultimately, he shows, it is not the market which is to blame; if we want to tackle issues like global warming or global economic injustice, we should not blindly follow the intuition that we best restrain and regulate markets. Commutative Justice is unique in its focus on justice in exchange rather than on end-state distributive justice, and the way in which it addresses the new harms we are facing today. It will be of interest to researchers and advanced students in philosophy, politics, and economics who are working on questions of economic justice. (shrink)

Writing in the Business and Politics, Santos and Laczniak 2012) formulated a normative, ethical approach to be followed when marketers e ngage impoverished market segments. It is labeled the integrative justice model. As noted below, that approach called for authentic engagement, co-creation, and customer interest representation, among other elements, when transacting with vulnerable market segments. Basically, the IJM derived certain operational virtues, implied by moral philosophy, to be used when marketing to the poor. But this well-intentioned approach (...) raises a significant “So what?” question. Are such sentiments anything but lofty aspirations for idealists or are there steps to be taken by society and business managers of goodwill to make the adaptation of the IJM by corporations more likely and pragmatic? This paper begins to layout a roadmap that shows “how and why” the IJM might more likely be vitalized. The crux, as described below, is found in the transformational justice dimensions that are embedded in institutions ; such external institutions provide a “power” impetus to assure the ethical rights claims that impoverished consumers have owed to them. In this way, the ideal exchange characteristics for bottom of the pyramid markets argued for in the IJM can become actively transformational. The main contribution of this paper is that it begins to chart out the institutional system elements that need to exercise power in order to deliver a “fairer” marketplace for BoP consumers. (shrink)

This paper offers a novel situational approach to study organizational justice in which the proposed unit of analysis is managerial behavior manifested in argumentation rather than employee justice perceptions. The currently dominant theoretical framework in justice research, which is built on justice perceptions, neglects the unique features of organizational order and vulnerability of procedural justice perceptions. As the procedural justice concept belongs chiefly to a spontaneous market order under which the rule of law (...) is made possible, it is inappropriate to transfer this concept to an organization in which the rule of authority is dominant. Therefore, except the limited legal domain in which managerial freedom is restrained by laws, procedural justice in organizations represents a mirage that can give rise to hypocritical managerial actions that can legitimate morally controversial outcomes via eristic tactics. In contrast, interactional justice is of great importance to organizations in that employees and organizations can ensure their rational economic exchanges without deception. However, current formulations of interactional justice often regard interactions as a palliative recipe designed to alleviate reactions to outcomes and not as a constituent of distributive justice. Perelman’s argumentation theory can offer a new conceptualization of interactional justice that addresses this gap. (shrink)

Following Thomas Aquinas, Francisco de Vitoria's analysis of justice in exchanges takes place by commenting on the corresponding questions of the Summa Theologica. The identification of the just price with that of common estimation occurs under a sufficient concurrence of sellers and buyers. A high level of concurrence limits the ability to take advantage of the need on the other side of the market. This fact guaranties a full consent of the parties involved in trading. Under conditions (...) of market power or when some authority fixes a legal price, just price should also be taken as a normative ideal. (shrink)

Technology used in online marketing has advanced to a state where collection, enhancement and aggregation of information are instantaneous. This proliferation of customer information focused technology brings with it a host of issues surrounding customer privacy. This article makes two key contributions to the debate concerning digital privacy. First, we use theories of justice to help understand the way consumers conceive of, and react to, privacy concerns. Specifically, it is argued that an important component of consumers' privacy concerns relates (...) to fairness judgments, which in turn comprise of the two primary components of distributive and procedural justice. Second, we make a number of prescriptions, aimed at both firms and regulators, based on the notion that consumers respond to perceived privacy violations in much the same way they would respond to an unfair exchange. (shrink)

The fairness of agricultural markets is frequently invoked, especially by farmers. But fairness is difficult to define and measure. In this paper we link fairness and power with the concept of constrained choice to develop a framework for assessing fairness in agricultural markets. We use network exchange theory to define power from the dependencies that exist in agricultural networks. The structure of agricultural networks and the options that agricultural producers have to participate in agricultural networks affect the degree to which (...) they are dependent on others within the network. Dependency, in turn, affects the choices that agricultural producers have. We consider both the number and nature of these choices. We argue that constraining or limiting choices—both in number and type—violates principles of justice. Importantly, network exchange theory provides a method for assessing constraints in choices and, hence, the fairness of agricultural markets. Such an assessment could potentially lead to new policies that safeguard the liberties of marketplace participants. We present a brief case to illustrate how this framework can inform on the fairness of agricultural markets and conclude with considerations of what this means for policy, particularly in the arena of anti-trust. (shrink)

In Anarchy, State, and Utopia, Robert Nozick seeks to demonstrate that principles of justice in acquisition and transfer can be applied to justify the minimal state, and no state greater than the minimal state. That approach fails to acknowledge the critical role that forced exchanges play in overcoming a range of public goods and coordination problems. These ends are accomplished by taking property for which the owner is compensated in cash or in kind in an amount that leaves (...) him better off (by his own lights) than before the transaction. Forced exchanges use coercion to form the state, but the just compensation requirement guards against redistribution state imposed redistribution for collateral purposes. Once these forced exchanges are allowed to form a state, then they may be used thereafter to justify the powers of taxation and eminent domain used to support infrastructure (roads, sewers, public utilities) that neither the minimal state nor private markets can supply. Footnotesa I have benefited from comments at the workshop at the Social Sciences Division of the California Institute of Technology. My thanks to Justin Herring and Eric Murphy, The University of Chicago Law School, for their usual capable research assistance. (shrink)

An axiomatic analysis of the concept of unequal exchange (UE) between countries is developed in a dynamic general equilibrium model that generalises John Roemer’s (Central Planning and the Soviet Economy, MIT Press, Cambridge, 1983) economy with a global capital market. The class of UE definitions that satisfy three fundamental properties—including a correspondence between wealth, class and UE exploitation status—is completely characterised. It is shown that this class is nonempty and a definition of UE exploitation between countries is proposed, which (...) is theoretically robust and firmly anchored to empirically observable data. The full class and UE exploitation structure of the international economy is derived in equilibrium. (shrink)

Western visitors to those parts of the world that before 1991 were politically organized as the Soviet Union have been impressed by the attitudes of persons toward behavior in ordinary exchanges, attitudes that seem to be so different from those in Western economies. The essential elements of an “exchange culture” seem to be missing, and this absence, in itself, may be central to the effective functioning of market economies. Individual participants in ordinary exchange relationships in Western economies act (...) as if they understand the simplest of all economic principles, namely, that there are mutual gains from trade, that the benefits are reciprocal, that exchange is a positive-sum game. This “as if” understanding, which remains perhaps below our level of consciousness in the West, is largely missing from the public attitudes of citizens of the former Soviet Union, who behave as if the gains from trade do not exist, or at least are one-sided rather than mutual. (shrink)

Corruption devours profits, people, and the planet. Ethical leaders promote ethical behaviors. We develop a first-stage moderated mediation theoretical model, explore the intricate relationships between ethical leadership and employee ethical behaviors, and treat ethical climate and organizational justice as dual mediators and leaders’ moral attentiveness as a moderator. We investigate leadership from two perspectives—leaders’ self-evaluation of moral attentiveness and members’ perceptions of ethical leadership. We theorize: These dual mediation mechanisms are more robust for high moral leaders than low moral (...) leaders. Our three-wave data collected from multiple sources, 236 members and 98 immediate supervisors in the Republic of Iraq, support our theory. Specifically, ethical leadership robustly impacts organizational justice’s intensity and magnitude, leading to high employee ethical behaviors when leaders’ moral attentiveness is high than low. However, ethical leadership only influences the ethical climate’s intensity but has no impact on the magnitude when leaders’ moral attentiveness is high than low. Therefore, organizational justice is a more robust mediator than the ethical climate in the omnibus context of leader moral attentiveness. Our findings support Western theory and constructs, demonstrating a new theory for Muslims in Arabic’s emerging markets. Individual decision-makers apply their values as a lens to frame their concerns in the immediate and omnibus contexts to maximize their expected utility and ultimate serenity-happiness. Ethical leadership trickles down to employee ethical behaviors, providing practical implications for improving the ethical environment, corporate social responsibility, leader-member exchange, business ethics, and economic potentials in the global competitive markets. (shrink)

Macromarketing attempts to address issues that engage marketing and society and previous ethical scholarship has focused on distributive justice and on exchanges that occur in conventional markets. As our research highlights, however, the distributive justice approach alone is insufficient for managing the complexities, ethical paradoxes, and out-of-market conditions associated with wicked, cross-national social concerns. In this article, we integrate macromarketing with the theory of the common good in order to provide a foundation for framing societal change (...) that can encompass nonmarket value, stakeholder rights, collective social priorities, organizational responsibilities, and political action. (shrink)

There are two competing approaches to sustainability in agriculture. One stresses a strict economic approach in which market forces should guide the activities of agricultural producers. The other advocates the need to balance economic with environmental and social objectives, even to the point of reducing profitability. The writings of the eighteenth century moral philosopher Adam Smith could bridge the debate. Smith certainly promoted profit-seeking, private property, and free market exchange consistent with the strict economic perspective. However, his writings (...) are also consistent with many aspects of sustainable agriculture. For example, Smith argued that people ought to exercise restraint in their pursuit of self-interest, and he believed in balancing economic with environmental and social considerations. If both sides of the debate more fully regard the work of Adam Smith, then proponents of the strict economic perspective might be more appreciative of the concerns raised within the sustainable agriculture community, while advocates of sustainability might be more effective in achieving the objective of a sustainable agriculture. (shrink)

Marx's thought about justice is essentialist and dialectical. It has been interpreted in terms of immoralism. It is rather a synthesis of the traditional natural law, based on the Aristotelian concept of nature as the potential for perfection or ideal fulfilment, radically different from the Hobbesian reductionist concept of nature as atomistic and mechanical; of the tradition of dialectics in its German idealist form; and of Feuerbach's humanism. Marx's explicitly realist idea of science reveals 'veiled wage-slavery'. Concentration on the (...) market exchange, to the exclusion of the subsequent exploitative use of labour power, deceives exclusively analytic observers into the belief that there is some justice in capitalism. Marx characterized the proletariat as the 'universal class', capable of bringing about the fulfilment of the human essence in a family-style mode of production , because it is the victim of total injustice . However, he criticized workers for not rising above such bourgeois selfishness as demanding 'a fair wage', which is not even a coherent concept. Capitalism is not only a moral injustice, but an ontological injustice, a violation of the worker's humanity. It is coercion into alienation, fetishism and idolatry. (shrink)

In 1978, 16 months after Mao Zedong's death, China's new leader, Deng Xiaoping, introduced market reforms and an "opening" to the West that allowed the US company Hewlett-Packard (HP) to enter China in 1981. Shortly thereafter, HP began a partnership with the Chinese company Legend Computer (now Lenovo), through which HP transferred its technology in four main areas: (1) product technology, (2) business model, (3) management practices, and (4) strategic planning processes. This technology transfer seems to be a "just (...) exchange" in that HP received access to China's market while China received key managerial, marketing, and product technologies. Although multinationals are often criticized for their dealings with developing nations, the HP–Legend case provides an illustration of how a company from an industrialized nation can deal justly with a developing nation and assist in advancing its development. The transfer of technology from HP to Legend was facilitated by several factors, including HP's historical willingness to help startups, its strategic posture, a favorable local environment, Legend's recognition of its own needs, its willingness to learn from a foreign company, and the incentives to share technology that the Chinese government provided. (shrink)

This article reconstructs and reflects on the 1989 debate between Jerry Cohen and myself on market socialism in the light of Cohen's ongoing defence of communitarian socialism. It presents Cohen's view of market socialism as ethically deficient but a modest improvement on capitalism, and outlines some market socialist proposals from the 1980s. Our debate centred on the issues of distributive justice and community. I had argued that a market economy might be justified by appeal to (...) desert based on productive contribution, but Cohen saw effort as the only relevant desert base, and claimed that only non-comparative judgements of economic desert were possible. Market-derived inequalities, therefore, could not be deserved. He also condemned markets for relying on the motives of greed and fear, and therefore as destructive of community. In reply, I asserted that markets also liberated people from fixed social roles, and that market competition could be viewed differently, as providing the most effective way for people to contribute to each other's welfare. In retrospect, this debate can be seen to raise questions about the nature of justice and the purpose of political philosophy that have come to the fore in recent exchanges between ‘realists’ and ‘idealists’. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Atonement, Justice, and Peace: The Message of the Cross and the Mission of the Church by Darrin W. Snyder Belousek, and: Restorative Justice: Theories and Practices of Moral Imagination by Amy LevadDana ScopatzReview of Atonement, Justice, and Peace: The Message of the Cross and the Mission of the Church DARRIN W. SNYDER BELOUSEK Grand Rapids, MI: Eerdmans, 2012. 668 pp. $55.00Review of Restorative Justice: (...) Theories and Practices of Moral Imagination AMY LEVAD El Paso, TX: LFB Scholarly Publishing, 2012. 300 pp. $80.00In Atonement, Justice, and Peace and Restorative Justice, the authors advocate for a restorative conception of justice, which they oppose to the “normal” retributive concept. Amy Levad draws on Aristotle and the virtue ethics tradition to write about “moral imagination” and restorative justice. Darrin Belousek uses Thomas Kuhn’s language to write about a “paradigm shift” in our understanding of theological themes relevant to restorative justice. Both contrast the restorative imagination or paradigm with a retributive one, although Levad also contrasts restoration with rehabilitation. Levad limits her study to restorative justice as [End Page 214] practiced in the criminal justice system, while Belousek expands his work to consider the Bible, theology, and multiple issues in society and in the church.Levad begins her book by discussing Aristotle’s idea of justice as equity, which she points out requires more discernment from judicial decision makers than it requires the algorithmic application of laws. In order for them to enact justice as equity, she argues, decision makers need a “vivid and expansive” moral imagination. Toward this end, she brings together two traditions: Aristotelian virtue ethics and modern literature on moral imagination. At the heart of her work is an ethnographic study intended to determine whether there are practices of restorative justice that can foster such a vivid and expansive moral imagination. After observing and interviewing participants in restorative justice programs in Colorado, Levad examined the narratives, metaphors, and symbols they used in order to determine whether and how they demonstrated a distinctively restorative moral imagination. Because the scope of her study was limited, and because she had difficulty getting a wide spectrum of roles involved in restorative justice to participate in the study, Levad’s results are more suggestive than conclusive. She acknowledges that we cannot generalize from them; although she draws on research methods from sociology and criminology, her findings do not meet their standards of evidence. Thus, the book’s greatest value lies in the recommendations it makes for further study. Empirical studies of the effectiveness of restorative justice practices have tended to focus on either reducing recidivism or the satisfaction of participants with the process. Levad brings to the fore two questions that have so far not been explored in previous research. First, how do restorative justice practices affect the moral imagination? And second, what effect might those practices have on ethical discernment? Her book takes some hopeful initial steps in addressing those questions.Although Levad writes as a Christian ethicist, she did not explicitly incorporate theological reflection into her study of state-sponsored programs. Belousek, by contrast, takes on an explicitly theological project of evaluating how interpretations of the significance of the cross of Jesus interact with such things as support for capital punishment, just war, and market economics. Since Belousek’s book is wide-ranging, this review will concentrate on the task it has in common with Levad’s book: that of reconceptualizing justice.In a fashion parallel to Levad’s use of Aristotle’s notion of justice as equity, which sometimes departs from strict legal justice, Belousek cites Paul’s vision of God’s justice “irrespective of” or “apart from” the law (372). Belousek begins by linking penal-substitutionary atonement theory to capital punishment, just war, and exchange economy in a single “paradigm,” arguing that they are all under-girded by what he calls the “Retributive Principle” (28). He then challenges this paradigm’s appropriateness for Christianity on biblical and doctrinal grounds. After examining arguments in favor of penal-substitutionary atonement in detail—drawing on the works of J. I. Packer and Thomas Schreiner, among [End Page 215] others—he turns to the scriptures cited in support... (shrink)

In lieu of an abstract, here is a brief excerpt of the content:John Rawls's Originary Theory of JusticeEric Gans (bio)The fundamental thesis of generative anthropology is that the principal concern of human culture is and has been from the outset to defer the potential violence of mimetic desire. To this mode of thought, constructing a model of the good society in any but the general terms of "exchange" and "reciprocity" is unfaithful to the human community, whose operations have been from (...) the beginning beyond the grasp of any individual mind within the society, and in which since the rise of the market system we participate largely unmediated by ritual. Rather than providing a template for the "good society," originary thinking provides a touchstone for ethical progress: act so as to contribute to reciprocal exchange, negatively, by aiding those who need help to participate in the exchange system more fully, and positively, by creating new foci of desire that enrich the system of exchange, the circulation of desire and satisfaction. The result of these acts is to reduce or "defer" resentment, negatively, by removing grievances, and positively, by creating new opportunities for recycling resentment into productive activity.These precepts notwithstanding, the "moral model" of reciprocal exchange, as exemplified in the exchange of signs around the sacred center in the hypothetical originary event, provides the basis for a recurrent temptation to create utopias. The theoretical gesture of measuring a given social order against a moral ideal is an extension of the moral intuition we apply in judging all human actions; whatever our degree of resignation, we cannot help but resent any suggestion—even when it is "objectively" false—that we have been victims of a failure of reciprocity. Both the theory and the personal intuition are direct descendants of the originary exchange of representations, as are the moral "theories" that are explicitly grounded in the sacred. Abstract moral theorizing must ultimately appeal to either transcendence or intuition, and the appeal to the former differs only in its rhetoric from the appeal to the latter.Finally, these "timeless" reflections must be situated in history. Determining the proper relationship between universal morality and historically [End Page 149] particular ethics poses a particularly acute problem in the postmodern era. The question that has remained with us since the end of World War II is how to overcome the paralysis of Auschwitz—how to acknowledge the necessary deferral of reciprocity without condoning genocide. If we hold history's institutions to the touchstone of the moral model, they will always be found wanting, yet this historical experience tells us that if we do not so hold them, anything is possible. The fact that accusations of Nazism (or "fascism") continue to be made today—notably against Israel itself—is a sign that the moral dilemma has not yet been resolved. But unlike metaphysical thought, originary thinking takes the Holocaust as a sign not of the need to construct a social model that will resolve this dilemma, but of the inappropriateness of confronting it directly. Making the world a better place not only does not require but is in fact incompatible with a prior image of the world made good.The most serious attempt by mainstream Anglo-American social thought to grapple with this postmodern quandary is that of the late Harvard philosopher John Rawls (1921–2002), whose A Theory of Justice (1971) remains the era's most important work of moral philosophy. To sum up in my own terms Rawls's basic idea: if we imagine ourselves in an "original position" when society has not yet come into existence, so that our (future) place in it is hidden from us by a "veil of ignorance," then we will be able to agree on the criteria of a good society, since our uncertainty will convince us all equally of the necessity to protect ourselves from unfairness in the event we are assigned one of society's less desirable roles. We may then accept this imaginary agreement, unbiased by the participants' knowledge of their eventual social role, as universal humanity's most just arrangement. Rawls considers that under these conditions any inequality in the overall distribution of social goods can be justified only if it produces a margin of... (shrink)

Taming the power of Wall Street was a principal campaign theme for Franklin Delano Roosevelt in the 1932 election. Roosevelt's election bore fruit in the Securities Act of 1933, which regulated the public offering of securities, the Securities Exchange Act of 1934, which regulated stock markets and the securities traded in those markets, and the Public Utility Holding Company Act of 1935 (PUHCA), which legislated a wholesale reorganization of the utility industry. The reform effort was spearheaded by the newly created (...) Securities and Exchange Commission, part of the new wave of experts brought to Washington to rein in business. PUHCA also marked the federal government's first significant incursion into corporate governance, with a corresponding reduction in the traditional role of investment bankers. The SEC's ascendance over the investment bankers was reinforced during FDR's second term by the Chandler Act of 1938, which provided the agency with a broad role in the bankruptcy reorganization of troubled companies.Enacting those statutes was only the beginning, as the scope and effectiveness of the SEC's regulatory efforts depended critically on navigating these new statutes past an initially hostile Supreme Court. After substantial delay in the lower courts, the securities statutes eventually got a friendly hearing in the Supreme Court, where a number of Justices came to the Court after serving as the "Founding Fathers" of the federal securities laws. Roosevelt's Supreme Court nominees were involved in drafting the new legislation, securing its passage in Congress and implementing a litigation strategy that successfully stalled final determination of the constitutionality of the securities laws until New Deal appointed justices were in place. Felix Frankfurter played an important role in shaping the Securities Act and PUHCA, and was a key advisor on litigation strategy to the Roosevelt administration. Hugo Black led the legislative battle to enact PUHCA against the utility companies. Stanley Reed and Robert Jackson were key courtroom advocates arguing PUHCA's constitutionality. William O. Douglas headed the study of Protective Committees that led to the Chandler Act and was Chairman of the SEC. In this article, we explore the role of the New Deal justices in enacting the securities laws, litigating the challenges brought against them and then interpreting these laws in securities cases before the Supreme Court. We show the important role that these New Deal justices played in ensuring a broad scope for the federal securities laws through generous interpretation. Once constitutional questions had faded, securities cases proved to be a critical testing ground for newly emerging theories of administrative law. We demonstrate the split over the importance of judicial review versus deference to the rule of experts that emerged among these Roosevelt appointees. Finally, we explore the relative lack of influence of Douglas and Frankfurter in these cases, despite their familiarity and experience with the securities laws. (shrink)

There is a libertarian argument for live donor organ markets, according to which live donor organ markets would be permitted if we simply refrained from imposing any substantive and controversial moral assumptions on people who reasonably disagree about morality and justice. I argue that, to the contrary, this endorsement of live donor organ markets depends upon the libertarians’ adoption of a substantive and deeply controversial conception of strong, extensive property rights. This is shown by the fact that these rights (...) would prevent states intervening in cases of preventable and intuitively impermissible wronging of others that can arise when free individuals engage in voluntary offers and exchanges. I outline two forms of such wronging: discrimination and disrespectful demands. I argue that although these types of acts are morally impermissible, the policy question of whether and how they should be regulated by states is non-trivial. I then argue that there is good reason to think that organ markets would rely on disrespectful demands. This may help explain the widespread moral repugnance people feel toward organ trading. It also provides a prima facie, though not decisive, case for states to prohibit such markets. (shrink)

This timely and provocative book challenges the conventional wisdom that neoliberal capitalism is incompatible with social justice. Employing public choice and market process theory, Nick Cowen systematically compares and contrasts capitalism with socialist alternatives, illustrating how proponents of social justice have decisive reasons to opt for a capitalism guided by neoliberal ideas. Cowen shows how general rules of property and voluntary exchange facilitate widespread cooperation. Revisiting the works of John Rawls, he offers an interdisciplinary reconciliation of Rawlsian (...) principles with liberal democracy by introducing Robust Property-Owning Democracy, a new form of governance that aims to achieve social justice via practical, liberal means. Chapters address the knowledge problem and the incentive problem that emerge when aiming for a fair distribution of social resources and demonstrate how everyday political bargaining can help achieve just outcomes for all. Utilising insights from philosophy, politics and economics to show the role of market institutions and constitutional government in producing social justice, this book is crucial reading for academics, researchers and students of PPE and the political sciences. Its practical policy proposals will further benefit policymakers interested in mechanisms that spread the benefits of economic growth equitably. (shrink)

This essay argues that prediction markets, as one approach for aggregating dispersed private information, may not only be praised for their epistemic accuracy. They also feature characteristics that are morally desirable from the point of view of epistemic justice. Notably, they are a promising approach when we are trying to address testimonial injustice. The impersonality of market transactions effectively tackles the issue of identity prejudice, which underlies many forms of testimonial injustice. This is not to say that prediction (...) markets do not pose challenges for epistemic justice of their own like the risk of excluding knowers based on ability to pay. Or, in light of identity prejudice’s systematicity, the risk of discouraging some knowers because of differences in education or social background that lead to a certain unease when faced with prediction markets. The essay discusses these challenges, concedes limitations but also offers countermeasures to certain worries – e.g. hosting prediction markets on a play-money basis. Throughout, the essay addresses the question of the potential scope of using prediction markets for epistemic purposes, notably by means of the practical example of a prediction market for monetary policy. (shrink)

We first survey the Catholic social justice tradition, the foundation on which Caritas in Veritate builds. Then we discuss Benedict’s addition of love to the philosophical virtues (as applied to economics), and how radical a change that makes to an ethical perspective on economics. We emphasise the reality of the interpersonal aspects of present-day economic exchanges, using insights from two disciplines that have recognized that reality, human resources and marketing. Personal encounter really is a major factor in economic (...) exchanges in professional services, such as law and medicine. Finally, we examine the prospects for an economics of gratuitousness at a level higher than the individual, that is, for businesses devoted to social ends more than profit. -/- . (shrink)

This paper argues—contra some Austro-libertarians—that whether a given exchange is welfare-enhancing or welfare-diminishing does not depend on whether that exchange is just or unjust, respectively. Rather, we suggest that in light of our two thought experiments, Austro-libertarianism has at least a pro tanto reason to conceive of justice and welfare as two logically distinct ideals. This would in turn, most interestingly, predict the possibility of (a) just but welfare-diminishing exchanges and (b) unjust but welfare-enhancing ones. Upon considering possible (...) rejoinders to our points, we suggest that Austro-libertarians abandon a justice-based notion of welfare. (shrink)

In actuarial parlance, the price of an insurance policy is considered fair if customers bearing the same risk are charged the same price. The estimate of this fair amount hinges on the expected value obtained by weighting the different claims by their probability. We argue that, historically, this concept of actuarial fairness originates in an Aristotelian principle of justice in exchange (equality in risk). We will examine how this principle was formalized in the 16th century and shaped in life (...) insurance during the following two hundred years, in two different interpretations. The Domatian account of actuarial fairness relied on subjective uncertainty: An agreement on risk was fair if both parties were equally ignorant about the chances of an uncertain event. The objectivist version grounded any agreement on an objective risk estimate drawn from a mortality table. We will show how the objectivist approach collapsed in the market for life annuities during the 18th century, leaving open the question of why we still speak of actuarial fairness as if it were an objective expected value. (shrink)

Poststructural criticisms of classical and neoclassical economic conceptions of human motivation and agency often include rejections of how market exchange is conceived to involve only the desires and rationality of a solitary human agent. While many of these criticisms are illuminating, they also tend not to offer a positive, constructive alternative. In this chapter, I discuss the contributions of Paul Ricoeur's understanding of mutual recognition and how it can be used--albeit perhaps despite Ricoeur's own intention and critical assessment of (...) economics--to retrieve a theory of exchange in which mutuality is possible. My analysis consists of five sections. First, I recapitulate Ricoeur’s criticism of exchange. Second, I examine how the economist Richard Ebeling attempts to read mutuality in exchange through the hermeneutics of Ricoeur and why this attempt fails. Third, I revive Ricoeur’s broader conception of value in relation to care for the other. This allows me, in the fourth section, to correlate Ricoeur’s discussion of ethical value to exchange-value. Finally, I join exchange to mutual recognition via Ricoeur’s discussion of epieikeia. (shrink)

Debating Education puts two leading scholars in conversation with each other on the subject of education-specifically, what role, if any, markets should play in policy reform. The authors focus on the nature, function, and legitimate scope of voluntary exchange as a form of social relation, and how education raises concerns that are not at issue when it comes to trading relationships between consenting adults.

The financial crisis of 2008–2009 presents us with the opportunity to not only understand what has happened in the markets but also to reflect on the purpose of the marketplace. Drawing from expert economic analyses, we first assess the central lesson of the crisis—the failure of self-regulation by rational self-interest to moderate externalized risk in financial markets. Second, we ask the philosophical question occasioned by the crisis concerning the moral meaning of economic activity: Is market exchange solely for the (...) sake of self-interest? Reflecting on the poetry of Kahlil Gibran and engaging with the recent encyclical of Pope Benedict XVI, we turn our attention from political economy to moral economy: the relationships among market exchange, self-interest, and the common good—and, in particular, the prior conditions of market exchange and their moral significance for the present crisis. (shrink)

Should blood be bought and sold is in crude terms the question asked and answered by Richard Titmuss in his recent book The Gift Relationship. Dr Raymond Plant, a lecturer in philosophy at Manchester University, analyses Titmuss' arguments in a paper which we are printing in two parts. Titmuss has taken the provision of blood as his example of the gift relationship--and by extension that of health care generally. Dr Plant considers in turn each of Titmuss' arguments that blood should (...) not be a marketable commodity, the moral objections to which seem to be the erosion of freedom and of truth telling, the separation of society through the cash nexus, and its converse that the provision of health care is a means for the integration of society. Dr Plant also examines the views of other commentators on the Titmuss' theory of the value of a 'free' blood transfusion service and other medical care as a means of integration in society, and ends with his promise that in the second part of his paper he will examine Titmuss' principles not in terms of the market but rather as related to the principle of social justice. (shrink)

States are increasingly paying other states to host refugees. For example, in 2010 the EU paid Libya € 50 million to continue hosting the refugees within its borders, and five years later Australia offered Cambodia $31.16 million to accept asylum seekers living in Naru. These exchanges, which I call ‘refugees markets,’ have faced criticism by philosophers. Some philosophers claim the markets fail to ensure true protection, and are demeaning, expressing just how much refugees are unwanted. In response, some have (...) defended refugee markets, claiming they can ensure refugees have protection and are not demeaned. I argue that many markets do demean refugees, and therefore have moral costs, but can still be all-things-considered preferable to alternative schemes if they protect refugees more than these alternative schemes. (shrink)

In the sixteenth and seventeenth centuries, members of the Salamanca School engaged in a sustained and sophisticated discussion of the issue of just prices. This article uses their contribution as a point of departure for a consideration of justice in pricing which will be relevant to current-day circumstances. The key theses of members of this school were that fairness of exchanges should be assessed objectively, that the fair price of an article is one equal to its ‘value’, and (...) that the best indicator of that value is the price that article commonly fetches in an open market. This article tries to bring to light the attractiveness of those views in order to guide current practice by contrasting them with alternative views, showing their connection with intuitively attractive basic standards, and linking them to commonly shared intuitions. (shrink)

This dissertation offers a historically sensitive, analytical account of the usage of economic reasoning in the emergence of the contemporary concept of justice. Using the works of Thomas Hobbes, John Locke, Adam Smith, and John Rawls as textual foci, the dissertation examines the way the practice of economic exchange has been understood as the site of asymmetric power relations and the way social inquiry into the economic sphere has been used to expose and criticize forms of domination. The model (...) of political economy that I uncover is quintessentially moral, rooted in social practices, and geared towards the unmasking of hidden forms of power relations. (shrink)

Bastiat emphasized the institutional infrastructure of a market economy and the principle of spontaneous order. He began with first principles — the primacy of property and consent — and derived the legitimate functions of government. As a pioneer in constitutional political economy, he examined the relation between economics and politics, employed methodological individualism, and extended the exchange paradigm to collective choice. He showed that the attenuation of economic liberty in the pursuit of distributive justice under majoritarian government would (...) lead to rent-seeking, corruption, and politicization of economic life.Bastiat met l’accent sur l’aménagement institutionnel de l’économie de marché et sur le principe de l’ordre spontané. Son analyse débute avec les principes premiers — la primauté de la propriété et du consentement — et il infère de ces principes les fonctions légitimes du gouvernement. En tant que pionnier de l’économie politique constitutionnelle, il examine les liens entre la sphère économique et la sphère politique, a recours à l’individualisme méthodologique et étend le paradigme de l’échange aux choix collectifs. Il montre que l’érosion de la liberté économique qu’entraîne la recherche d’une justice distributive sous un gouvernement majoritaire mène à la recherche de rentes, à la corruption et à la politisation de la vie économique. (shrink)

This chapter argues for deregulation of the credit-rating market. Credit-rating agencies are supposed to contribute to the informational needs of investors trading bonds. They provide ratings of debt issued by corporations and governments, as well as of structured debt instruments (e.g. mortgage-backed securities). As many academics, regulators, and commentators have pointed out, the ratings of structured instruments turned out to be highly inaccurate, and, as a result, they have argued for tighter regulation of the industry. This chapter shows, however, (...) that the role of credit-rating agencies in achieving justice in finance is not as great as these commentators believe. It therefore argues instead for deregulation. Since the 1930s, lawgivers have unjustifiably elevated the rating agencies into official, legally binding sources of information concerning credit risk, thereby unjustifiably causing many institutional investors to outsource their epistemic responsibilities, that is, their responsibility to investigate credit risk themselves. (shrink)

Politics, Philosophy & Economics, Volume 21, Issue 2, Page 165-189, May 2022. It is generally acknowledged that a certain amount of state intervention in health and health care is needed to address the significant market failures in these sectors; however, it is also thought that the primary rationale for state involvement in health must lie elsewhere, for example in an egalitarian commitment to equalizing access to health care for all citizens. This paper argues that a complete theory of (...) class='Hi'>justice in health can be derived from a commitment to correcting market failure, or in other words promoting Pareto-efficiency, in the domain of health. This approach can address familiar problems around access to care, as well as problems related to resource allocation and rationing, the control of health care costs, and the foundations of public health. Egalitarian theories of justice in health cannot make sense of the depth and pervasiveness of state involvement in health and health care; only a theory rooted in the need to correct market failure can. (shrink)

The hypothetical social contract between a profession and society exchanges the privilege of self-regulation for the profession's promise to regulate itself in the public interest. When it no longer appears that the profession is exercising its privilege responsibility, there will be pressure to reform the regulation of the market for legal services, for example by allowing non-lawyers to provide legal services, or permitting lawyers to practice in partnerships with non-lawyers. So far the American profession has been relatively successful (...) at resisting reform, and the American Bar Association's Ethics 20/20 Commission wrapped up its business by proposing only a few minor, technical changes to the rules of professional conduct. One way the profession has fended off attempts to enact more comprehensive reforms is by appealing to professional core values. This article presents several claims about professional core values and reform of professional regulation. First, the American profession has not been particularly rigorous in defining a set of core values that appeal to the interests of clients or the public interest and are not merely a rearguard attempt by the profession to protect its monopoly. Second, and related, professional core values are plural in nature and vary in application considerably according to the context. Third, there is no reason that reforms cannot be considered that better serve interests such as access to justice while also respecting core values. Fourth, regulatory form is rather far down the list of threats to professional core values, after forces such as the increasing power of in-house counsel. The conclusion is not that there is no such thing as core values, but that if the profession continues to appeal to them as a rhetorical makeweight, it may find itself overwhelmed by pressures for reform. (shrink)

Heintz & Scott-Phillips's hypothesis that the topic range and type diversity of human expressive communication gains support from consilience with prior accounts of market exchange as fundamental to unique human niche construction, and of mindshaping as much more important than mindreading. The productivity of the idea is illustrated by the light it might shed on why elephants seem to engage in continuous social communication for little evident purpose.

Introduction Paul Boshears The following excerpt from Paul Amitai's In Between States: Field notes and speculations on postwar landscapes (2012) confounds its reader. Presenting an alternate history of the State of Israel as a space station orbiting Earth, the excitement of possibilities crackles across the texts and images. Like Chris Marker's La Jeteé , the accompanying static images distort the viewer's temporality: are these archaeological items, images from a past, or a future? Why isn't this our future? In Between States (...) can also be seen as complementing Larissa Sansour's provocative science fiction works, Space Exodus (2009) which "documents" the Palestinian space program, and her Nation Estate (2012), in which Palestine is relocated into a skyscraper. Amitai's vision opens onto an intergalactic diaspora, wherein the refugees of World War II are given the stars as Western Europe continues to fight over terrestial colonies. —PFB Auditorium, Hoechst AG headquarters, Industriepark-Höchst, 2011. In 1941 an investigation by the US Justice Department exposed a marriage cartel between John D. Rockefeller’s Standard Oil (now ExxonMobil) and I.G. Farben. The two corporations had formed a joint operation in 1927 called Standard IG Farben. It was revealed that the two had shared patents in order to control prices and markets in their respective regions. Standard was accused of hiding patents from the US Navy and supplying fuel to German submarines, which lead to charges of criminal conspiracy. The Pentagon intervened, requesting that President Roosevelt stop the investigation in order to protect war production and oil supply. Roosevelt agreed, and the Senate committee investigating the matter, headed by Senator Harry Truman, was halted. Standard Oil paid a fine of $5000 and promised to stop supplying fuel to the enemies. Auditorium, Hoechst AG headquarters, Industriepark-Höchst, 2011. Furious at the decision to terminate the investigation of acts he considered treason, Truman initiated a new inquiry into Standard Oil’s war-time practices after succeeding Roosevelt as president in 1945. With the chief executives of I.G Farben simultaneously on trial at Nuremburg, Truman brokered a deal with the Allies that reduced or withdrew criminal charges leveled against both corporations in exchange for Standard Oil and I.G. Farben’s sponsorship of one of Truman’s most ambitious postwar projects—the relocation of the Jewish people. Detail, Sanofi-Aventis advertisement, 2011. The third critical player in this bold experiment was the nascent North Atlantic Space Agency. Formed by Allied forces using the seized assets and engineering expertise of Hitler’s hitherto classified space program (conquer Earth, then the stars), the North Atlantic Space Agency was a pre-NATO foray into interstellar nation building, with orbital occupation as the first point of order. By 1947, NASA was nearly ready to deploy the first manned space station. Standard Oil and I.G. Farben’s advanced fuel refinement capacities and deep, war-enriched financial resources allowed NASA to speed up their launch schedule significantly. Detail, Sanofi-Aventis advertisement, 2011. Diplomatic efforts to establish a Jewish homeland in Palestine were failing to gain traction, while post-colonial England held its ground on immigration restrictions and bands of Jews and Arabs battled over territory on the ground. More immediate was the issue of temporarily housing Holocaust survivors and refugees across scorched Europe. Leaders of the continental nations demonstrated, at best, reluctance to accommodate the Jews, who in turn were, at the least, resistant to returning to the same bloody cocktail from which they had fled. Truman used the impasse to advance a plan for NASA’s space station to be put to use as a temporary Jewish outpost, an orbital displaced persons camp, to be operated by the US Army. Detail, Infaserv Höchst advertisement, 2011. Final preparations advanced rapidly. Viewing the orbital displaced persons (ODP) camp as a solution to their immigration problem both at home and abroad, England came on board as a willing partner. Spaceship Exodus was positioned for takeoff on German farmland 20 kilometers southwest of Frankfurt. On December 30, 1947, one month after the UN General Assembly voted down the separation plan for Palestine, Exodus rocketed into the atmosphere hauling the first module of barracks designed to house 1,500 refugees. Transport vehicles arrived shortly thereafter, loaded down with leftover wartime military rations and 3,000 Jews of Russian and Polish origin. Detail, Infaserv Höchst advertisement, 2011. "The camp is the space that is opened when the state of exception begins to become the rule."—Giorgio Agamben, Homo Sacer , trans. Daniel Heller-Roazen, (Stanford: Stanford University Press, 1995), 96. Detail, Infaserv Höchst advertisement, 2011. The ODP camp proved to be a longer-term solution than originally envisioned. Additional installations were positioned to form swollen clusters of interlocking units – sleeping quarters, schools, clinics, canteens. The UN was brought in to monitor the camp following two chaotic years of US Army control in which food shortages, pandemic diseases, and rampant black market trade had brought the camp to near total collapse. No less bureaucratic or ineffectual, the UN relief agency at least had prior experience facilitating contexts of a similar magnitude and could potentially predict outcomes. Detail, Infaserv Höchst advertisement, 2011. What had been unexpected was the degree to which the camp would evolve into its own self-regulated, hive-like ecosystem where previously accepted rules of conduct were not applicable. The ODP camp was an exceptional space, a riverboat casino, an offshore research lab of social experimentation and entrepreneurial innovation. No longer Earth-bound, touching soil knotted by prescripts of Talmudic law, the camp residents were able to rationalize loopholes and detonate barriers standing in the way of absolute production. The Jewish archipelago was renamed Israel after the ancient homeland. If the temple couldn’t be rebuilt in the motherland, a post-national rhizome would sprout up in its stead. Eyes everywhere, beyond all borders. More information on the project at the author's site. (shrink)

This paper focuses on the role of contract as a governance mechanism in contemporary economic and social relations, exploring this theme in the context of recent writing on contract and contracting within law and other disciplines. The trends towards both outsourcing by private firms and privatization of public services have increased the importance of contract as an instrument of market and quasi-market exchange. Such organizational developments have been accompanied by institutional changes in the way in which business relationships (...) are regulated through legal and extralegal norms and other constraints in the contractual environment. Contract is also being deployed increasingly as an instrument of regulation of social relations between the state and citizens in the fields of welfare, education and criminal justice. Following Macneil, the paper develops a methodology for assessing the quality of different types of relationship—between buyers and sellers, purchasers and providers, providers and consumers, regulators and regulatees, government and governed, and state agencies and citizens—according to the relationality of «contract» norms. Drawing on theories of responsive regulation, the paper explores the institutional and organizational conditions of responsive contractual governance in selected areas of market, quasi-market, and social relations. The underlying argument is that the core values of democracy, participation, and citizenship have a central part to play in the determination of responsive regulatory policy. We should aim to increase the level of public participation in decisions concerning organizational and institutional frameworks, so that citizen and consumer interests may adequately be represented in the determination of optimal forms of governance. (shrink)

The market relationships are being contested. This can be seen in the increasing number of alternative social experiments in the ‘North’ and the ‘South’ which propose to think out the present market relationships in a different way, in particular in establishing exchange value and in facilitating access to trade. These practical alternatives are supported by trends in academic circles that over the past three decades have opposed neoliberal capitalism and individualism in today's commercialised society. Calling for greater solidarity (...) and social justice in economic relationships, in particular, partisans of social and solidarity economics, identifying with these trends, demand new forms of exchange. The objective of this article is to re-examine these demands. What exactly do the SSE mean by ‘solidarity’ and ‘solidarity-based economy'? We would like to trace the contours of this theoretical and political project and to assess the practicability of the proposed alternative to neoliberal capitalism. (shrink)

Social justice is a contested concept. For example, some on the left argue for equality of outcomes, those on the right for equality of opportunities, and there are differing emphases on the roles of state, market and individual in achieving a socially just society. These differences in emphasis are critical when it comes to examining the impact that public policy has on minority ethnic groups. Social justice should not be culture-blind any more than it can be gender-blind (...) yet the overwhelming burden of evidence from the UK shows that public policy, despite the political rhetoric of fifty years of governments since large-scale immigration started, has failed to deliver social justice to Britain’s minorities. In terms of outcomes, in respect for and recognition of diversity and difference, in their treatment, and in the failure of governments to offer an effective voice to minorities, the latter continue to be marginalised in British social, economic and political life. This is not an argument for abandoning the project of multiculturalism, however, but for ensuring that it is framed within the values of social justice. (shrink)

This article investigates one of the major problems of modern political philosophy – the problem of justice in its fundamentally important methodological measurement in the Context of Ukraine. It’s consistently shown that justice belongs to a prominent place among the moral and social values: particularly its people owe to each other, because it is the scale, which measured freedom, equality and human rights.For this purpose it is analyzed the relationship and difference of methodological changes in grasping the concept (...) of justice in the works of K-O-Apel, J.Habermas, O.Höffe, R.Forst. It was found that Habermas interprets a new essence of solidarity and justice as normative principles of a democratic state where the requirement of respect for the dignity of each based on the acceptance of the inviolability of his body, life and property. It is proved that O.Höffe draws attention to the need of fundamental changes in the understanding of social justice, emphasizing the pre-modern, paternalistic sense of distributive models. Іn the writings of R.Frost social justice gain a political dimension, just as political or social relationship can exist only in case of their full justification, respect for human dignity. In the latest theories of justice is said that the victim of injustice is firstly the one who is ignored both in the process of manufacturing and distribution of public goods. To conclude: only the justice of exchange permits us to solve the immediate, practical dilemma: should one hand over a part of one’s freedom to social, state, authoritative structures, or be independent of them and be unable to resort to their assistance in case of emergency. People, perforce, mutually abandon part of their freedom as legal agents in order to enjoy their right for freedom. If this abandonment is universal, such exchange may be considered just. By insisting that everything individual is also social because it requires and is embedded into social context, R.Forst presents intersubjectivity as a fundamental dimension of human existence that shows itself in our ability to self-determination, i.e. freedom, but within the limits of human community. Also his point is that our obligations are no less rooted in our existence than our rights, and law has no priority over good and depends on moral good as a defining factor of justice. (shrink)

Foundations of Economic Personalism is a series of three book-length monographs, each closely examining a significant dimension of the Center for Economic Personalism's unique synthesis of Christian personalism and free-economic market theory. In the aftermath of the momentous geo-political and economic changes of the late 1980s, a small group of Christian social ethicists began to converse with free-market economists over the morality of market activity. This interdisciplinary exchange eventually led to the founding of a new academic subdiscipline (...) under the rubric of economic personalism. These scholars attempt to integrate economic theory, history, and methodology with Christian personalism's stress upon human dignity, humane social structures, and social justice. This final volume in the series systematically applies the praxeological and theoretical foundations of the personalist tradition to free-market economic theory. Unlike the previous two, this work defends economic liberty in theologically sensitive terms that reference the personalist tradition, without compromising the disciplinary integrity of either economics or social ethics. (shrink)

This paper begins with the observation that the contemporary eco-building movement in the UK focuses on technology with the principal aim of reducing carbon emissions and so combating climate change. While this focus may translate into justice for future generations, there seems markedly less regard for justice for others in intragenerational space. I analyse the eco-building movement's framings of sustainable development and sustainability, seeking out statements of equity via the criteria used for building materials selection. Closely defining equity (...) as theory and practice, analysis reveals that framings of sustainable development and sustainability in the eco-building movement vary considerably in their engagement with intragenerational equity. This begs the question of whether the movement has a shared political critique. There is a marked tendency to view discourses of environmental sustainability and social justice as distinct rather than mutually constitutive. I propose that the eco-building movement should engage in a politics of the common good (Sandel, 2010), contesting equity in the public domain. Wary of the reach of markets, the eco-building movement should debate not only the right way to distribute building materials and shelter but also the right way to value them. (shrink)

The present essay contends that progressive readings of Smith ignore the influence of theological concepts and religious ideas on his work, notably three distinct strands: first, seventeenth- and eighteenth-century natural theology; second, Jansenist Augustinianism; third, Stoic arguments of theodicy. Taken together, these theological elements help explain why Smith’s moral philosophy and political economy intensifies the secular early modern and Enlightenment idea that the Fall brought about ‘radical evil’ and a ‘fatherless world’ in need of permanent divine intervention. As such, Smith (...) views the market as divine regulation of human sinfulness and an instrument to serve God’s providential plan. Indeed, the ‘invisible hand of the market’ represents a nominalist realm where human cooperation intersects with divine providence, blending private self-interest with the public commonweal. I will also argue that Smith’s conception of a morally neutral market is ultimately incompatible with creedal Christianity, in particular orthodox catholic Christian ideas of the common good in which all can share and the practice of charity for those most in need who have been abandoned by state bureaucracy and the marketplace. The main reason is that Smith, not unlike Calvin, tends to divorce human contract from divine gift by dividing the theo-logic of gratuitous reciprocal giving from the economic logic of contract – a dualism that bears an uncanny resemblance with Suárez’s Baroque scholasticism of which Smith’s friend David Hume was rightly critical. In particular, the Reformation and Counter-Reformation theology of Calvin, Luther and Suárez sunders ‘pure nature’ from the supernatural and develops a ‘two ends’ account of human nature, according to which human beings have a natural end separate from their supernatural finality. So instead of participating in the divine oikonomia of asymmetrical gift-exchange, human society and the economy operate autonomously and are ordered towards a purely natural end. Smith conceptualises the market mechanism as both a fundamental precondition for interpersonal relationality and at the same time separate from the sociality it engenders. Smith’s anthropology hovers half-way between Machiavelli and Mandeville’s homo œconomicus in search for maximal profit, on the one hand, and the diametrically opposed conception of man as a gift-exchanging animal striving for mutual social recognition, on the other hand. By viewing market exchange as separate from the private virtues of benevolence, justice and prudence, he introduces a split between the exercise of moral virtues and the operation of commercial society. Such a divide is wholly foreign to the project of an overarching civil compact in the writings of Smith’s contemporary Antonio Genovesi and other members of the Italian schools of civic humanism and civil economy. In consequence, Smith’s œuvre marks a decisive shift from civil to political economy. (shrink)

There has recently been much debate about the idea of levying a tax on particular transactions on international financial markets. Economists have argued about how much revenue such an international financial transaction tax would raise and they disagree about what effects it would have on trade volumes, financial stability, and overall growth. Politicians have argued about the feasibility of introducing such a tax internationally and they disagree on its adequacy as a policy response to the current financial and economic crisis. (...) This article contributes to the debate about international financial transaction taxation by bringing the perspective of political philosophy to bear on the politicians’ and economists’ arguments about policy. I shall outline a framework for thinking about justice in finance, and defend the idea of an international financial transaction tax as an instrument for making the international financial system more just. (shrink)

In 1981, Ronald Dworkin published a two-part article entitled “What Is Equality?”. In it, he considers what egalitarians should aim to equalize. Dworkin argues in favor of equality of resources rather than equality of welfare, and in particular, he maintains that a proper egalitarian theory of distributive justice should be “ambition-sensitive” but not “endowment-sensitive.” That is, it will allow inequalities that reflect the fact that some people “choose to invest rather than consume, or to consume less expensively rather than (...) more, or to work in more rather than less profitable ways,” but it will not allow the distribution of resources to be affected by “differences in ability of the sort that produce income differences in a laissez-faire economy among people with the same ambitions”. (shrink)