Knowledge (XXG)

Justice and the Market

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295:, whereby the allocation of rewards, positions and responsibilities is objective and upon the merit of an individual. Merit is predominantly assessed via examinations and evaluations, but a perfect meritocracy is near impossible to achieve. The attainment of a university degree is purportedly an example of a meritocratic system, but the inability to ensure equal opportunity to access university by all refutes this point. Inequalities exist in access to prior education, socio-economic factors and as Rawls argues natural abilities and talents. Criticism of meritocracy comes from the reproduction of traditional hierarchies and inequality, when merit is not awarded in a meritocratic manner but instead on the basis of opportunity. Distribution based upon the arbitrary nature of desert faces criticism from 324:. In this approach to the question of societal design, removal of the knowledge of particular abilities, tastes and position within society creates a veil of ignorance. The application of this veil in the thought experiment determines the basic structure of society subjectively, because knowledge of the outcome and participant's subsequent position in the society is deprived. From this naive perspective, an evaluation of resource allocation can be made from a morally arbitrary point of view. The veil of ignorance favours the selection of 'the original position' a point in between self-sufficiency and collectivism, whereby two fundamental principles of justice would be agreed upon. 277:
Introduction of a rewards system (be it economic or otherwise) breaches the basis of the communist society, because reward places value on individual achievement. An additional criticism flows from Adam Smith's discovery of the effect of market signals on resource allocation. With no consumers to express demand, optimal resource levels cannot be maintained. Instead production occurs on the basis of need only and need is not measured by willingness to pay.
129:'s idea of the invisible hand was a founding contribution to explain resource allocation within a society. The invisible hand metaphor portrayed an aggregated market created by the self-interest of those involved, and grounded in the notion that through fulfillment of one's own aspirations, society would benefit. This idea formed the foundation of 231:
In this scenario members of a society share common ownership of the means of production and rewards from that production. The resultant society gains and allocates resources according to the quote "From each according to his ability, to each according to his needs!". The communist approach eliminates
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satisfied prior to subsequent principles. So whilst liberty is said to be the dominant principle, the difference principle that results from the acceptance of inequalities (the second principle) operates in violation of the first principle. This is exemplified by redistributive taxes as discussed by
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Rawls arranged the fundamental principles of the Original Position in lexical priority: the liberty principle, fair equality of opportunity and lastly the difference principle. This prioritisation encounters criticism, as the importance of the first principle is awarded greater weighting and must be
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markets in which the supplier is a price maker and consumers assume the role of price taker. Price controls as a strategy provide relief from the price exploitation of the dominant player in a market transaction, albeit a short term abatement of this power which is a common criticism of this method.
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postulated that the era of feudal aristocracy and the capitalism experienced in 1847 at the time of its writing, would be replaced with communism, or as today known, a socialist society. Communists from a Marxian perspective are described as persons that understand the world and are enlightened to
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as follows: 1. A decreased incentive to work when top tier earners are taxed proportionately greater than lower tier earners. Reaching an equilibrium point demonstrates the difference principle. At equilibrium, top tier earners are provided with enough incentive so to remain in their positions of
187:, are often attributed to capitalism and a pure free market is built upon a principle of rewarding effort. This however ignores persons born with greater natural abilities or greater opportunities. Thus, successive iterations of pure free market capitalism would lead to a market based upon feudal 153:
The invisible hand approach, or pure free market capitalism, assumes that a competitive market allocates resources in an appropriate manner, but Stephen LeRoy highlighted the debate that ensued following the recent financial crisis upon whether this assumption holds true for modern economies.
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Within a Communist society the sole purpose of production is in maintaining the subsistence of the collective. Removing any role for self-interest also removes this incentive to exert effort by individuals because reward is not allocated proportionate to effort or in a meritocratic manner.
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is an ethical perspective based upon the allocation of scarce resources within a society. The allocation of resources depends upon governmental policies and the societal attitudes of the individuals who exist within the society. Personal perspectives are based upon ones circle of
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employment and thus continue to produce benefits also received by bottom tier earners. 2. A Meritocratic allocation of reward. 3. Self-Ownership of one's natural talents and abilities, violated by redistributive practises that treat these natural assets as public or communal.
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attempted to create a thought experiment that would allow for the consideration of a societal design that is best for all involved. Mechanisms of redistribution vary among countries and governmental roles within societies determine the redistributive mechanisms that are used.
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A Communist society utilises a utilitarian based moral approach as a means to preserve the society. In this system the rights of the collective are placed above the rights of individuals. The utilitarian paradigm represents "the greatest happiness principle" as theorized by
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theory ineffectual, requiring a new economic theory to be developed. Critics of Galbraith in turn objected to the fact that the focus of his writings were lay readers, as opposed to expert academics, implying that his answers to economic problems are too simplistic.
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are the inefficient allocation of goods and services, that can occur in a free market economy. These failures often arise in the pursuit of goals of self-interest that lead to inefficient market outcomes such as Veblen's theory of conspicuous consumption.
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has one of the highest income tax rates in the world, which translates to a high level of social welfare in the areas of education, healthcare and pensions. This is a mostly utilitarian form of society and results in a low
112:, left to its own accord, is a fair market and that redistributive taxation is unjust. Many libertarian schools of thought exist with differing views on many principles, such as the role of government in the market place. 81:
Distributive justice relates to the principle of fairness in the allocation of wealth, income, power and opportunities. Many theoretical paradigms have been developed to approach distributive justice such as Adam Smith's
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As Rawls wrote: "They are the principles that free and rational persons concerned to further their own interests would accept in an initial position of equality as defining the fundamental terms of their association".
435:" aimed to draw attention to the financial power held by a minority. This power is perpetuated by the supposedly corrupt nature of large corporations said to hold overwhelming financial and political control. 350:
Rawls’ conclusion to the regulation of inequality, was a society based upon his proposed 'difference principle' - permitting inequalities that work to the advantage of the worst off. Not to be confused with
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The impact of Marxist theories continues to this day. Alan Taylor compares The Communist Manifesto to a holy script, being acted upon and quoted by supporters that do not know the source of their belief.
355:, this compensates for the natural abilities of individuals through a redistributive exercise. The society that results is therefore fair on the basis of opportunity regardless of natural ability. 108:
The Libertarian philosophy refers to freedom, and particularly individual liberty which dictates the right and ability to govern one's self. In an economic sense the libertarian view assumes a
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are a government initiative to mitigate exploitative market power. Specifically in response to systems of pricing that capitalise on the dependency of one market entity upon another, such as
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Kidder, C. W. (2000). The Rise of the Testocracy: An Essay on the LSAT, Conventional Wisdom and the Dismantling of Diversity. Texas Journal of Women and the Law. 9(2). pp. 167 - 250.
398:, monetary policies, welfare and nationalisation of private enterprise. Taxation as a means to redistribute wealth seeks to establish a level playing field for its constituents. 446:
remains a common experience of billions and the emergence of these traps can arise from both market failure and institution failure. On the opposite side to poverty traps are
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Social and economic inequalities that (a) work to the benefit of the least advantaged members of society and (b) attached to positions and offices available to all.
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which criticises the use of this tax as a levelling mechanism, impinging upon an individual's basic liberties, the mainstay of the original position's principles.
268:. This theory holds that the best course of action is that which benefits the majority, and may require the sacrifice of some to maximise happiness overall. 816:
Azariadis C. & Stachurski J. (2005). Poverty Traps. In Aghion P. and Durlauf S. The Handbook of Economic Growth Volume 1A. Amsterdam, Holland: Elsevier.
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the interests of the proletariat. Marx surmised that the "dictatorship of the proletariat" refers to rule by the working class and would see the battle of
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have sought to answer the question of which members of society deserve material rewards and how to decide what deserving is based upon. Perspectives of
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Krugman, P. (1994). Peddling prosperity: Economic sense and nonsense in an age of diminished expectations. New York: W. W. Norton Inc.
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of large corporations. He posited that the power of corporations and their associated advertising, would make the markets espoused in
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conceived the notion of 'The Original Position' based upon the thought experiment whereby participants must agree to a hypothetical
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to display success to others. This proclivity to purchase luxury goods has been viewed as an inefficiency of the capitalist system.
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Marx K. (1937) Marx:Critique of the Gotha Program. Co-operative Publishing Society of Foreign Workers in the USSR: Moscow, p. 14
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Smith, A. (Ed.). (2007). An Inquiry into the Nature and Causes of the Wealth of Nations. Peterfield, Hampshire: Harriman House.
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ownership of these services advantage those that can afford it and for those that cannot, inequality is exacerbated further.
40: 141:’s ideas about economic systems lay. The free market originated from the concept of the invisible hand, and eventuates in a 145:
with resources allocated on the basis of merit. Modern representations of this exemplify perfect free market capitalism.
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Levinson, D. and Sadovnik, l. R. (2002). Education and sociology: an encyclopedia. New York: Taylor & Francis
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has a relatively high Gini coefficient opposed to Sweden of 0.41. As such the USA faces a problematic history in
369: 560: 389: 299:, that dictates justice without equality is futile and that equality in itself is the highest form of justice. 477:
Laham. s.(2009). Expanding the Moral Circle: Inclusion and Exclusion Mindsets and the Circle of Moral Regard.
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Davenport J. (1996) A Critique of Rawls's Arguments for the Lexical Priority of Liberties. Available at
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in all respects, and represents a society from a pure collectivism school of thought, based upon the
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Veblen. T. (Ed.). (2007). The Theory of the Leisure Class. New York: Oxford University Press Inc.
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Galbraith, J. K. (1998). The Affluent Society (40th Anniversary ed.). Boston: Houghton Mifflin.
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Sandel, M. J. (2009) Justice: What’s The Right Thing To Do? New York: Farrar, Straus and Giroux
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Taylor A. (1967) Introduction in The Communist Manifesto. London, England: Penguin Books.
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Equal rights to extensive basic liberties, compatible with a similar liberty for others.
416: 376: 296: 258: 194: 103: 83: 56: 798: 826: 442:, acts as a self-reinforcing mechanism which causes poverty to persist. This vicious 412: 365: 130: 427:
The inequality of wealth distribution in the United States was the precursor to the
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Marx K. & Engels F. (Ed.). (2008) The Communist Manifesto London: Pluto Press.
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Smith, A. (Ed.). (1976). The Theory of Moral Sentiments. Oxford: Clarendon Press.
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services. Accessibility issues exist in healthcare and education in particular.
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Rawls J. (1971) A Theory of Justice. Great Britain: J. W. Arrowsmith Ltd. p.11
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Marx K. (2000) The class struggles in France. Moscow: Progress Publishers.
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Mills. J. S. (Ed.). (1979). Utilitarianism. Indianapolis: Hacket Pub. Co.
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Rawls J. (1971) A Theory of Justice. Great Britain: J. W. Arrowsmith Ltd.
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concern or those who the individual deems worthy of moral consideration.
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Justice: What's The Right Thing To Do? Episode 08: "WHATS A FAIR START?"
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Redistribution of wealth is attained through many forms such as
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Lamont, Julian; Favor, Christi (2017), Zalta, Edward N. (ed.),
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Three objections to the difference principle are identified by
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http://www.fordham.edu/philosophy/davenport/texts/priorlib.pdf
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that spread to up to 80 countries. The protest's slogan "
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http://lilt.ilstu.edu/pefranc/3-ts%20of%20justice.htm
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http://www.adbusters.org/campaigns/occupywallstreet
450:, or an over-reliance upon welfare, that creates a 291:Meritocracy is an ideology founded in the works of 59:(right-wing) that exist on a continuum scale. 170:’s writings centered mostly, however, on the 8: 785:List of countries by income equality at 539:Three Theories of Justice. Available at 479:Journal of Experimental Social Psychology 407:, a measure of equality of income 0.25. 781: 779: 514: 512: 497:The Stanford Encyclopedia of Philosophy 470: 787:List of countries by Gini coefficiency 561:"Libertarian vs. Utilitarian Justice" 526: 524: 7: 620: 618: 248:Criticisms of the Communist Society 133:economic philosophy and subsequent 162:(1899) argued that some wealth is 14: 90:view of Communism and John Rawls 160:The Theory of the Leisure Class 1: 31:Philosophers, economists and 409:The United States of America 429:Occupy Wall Street Movement 859: 387: 343: 306: 284: 256: 209: 119: 101: 74: 384:Redistributive mechanisms 370:Anarchy, State and Utopia 359:Criticism of Rawls theory 62:20th century philosopher 797:Adbusters Available at 390:Redistribution of wealth 340:The Difference Principle 51:to form the extremes of 221:The Communist Manifesto 149:Criticism of capitalism 838:Distribution of wealth 493:"Distributive Justice" 353:trickle-down economics 185:distribution of wealth 164:conspicuously consumed 135:neoclassical economics 49:political philosophies 559:Chappell, Richard Y. 303:The Original Position 481:, 45(1). Pg. 250–253 423:Inequality of wealth 346:Difference principle 143:meritocratic society 77:Distributive justice 71:Distributive justice 37:distributive justice 599:"San Francisco Fed" 240:moral perspective. 804:2011-11-04 at the 546:2012-04-24 at the 452:perverse incentive 176:classical economic 116:Capitalist society 603:San Francisco Fed 322:veil of ignorance 309:Original position 206:Communist society 181:Social inequality 92:original position 850: 817: 814: 808: 795: 789: 783: 774: 773: 771: 770: 755: 749: 748: 747: 746: 734: 728: 721: 715: 712: 706: 703: 697: 694: 688: 685: 679: 676: 670: 667: 661: 658: 652: 649: 643: 640: 634: 631: 625: 622: 613: 612: 610: 609: 595: 589: 586: 580: 577: 571: 570: 568: 567: 556: 550: 537: 531: 528: 519: 516: 507: 506: 505: 504: 488: 482: 475: 444:cycle of poverty 405:Gini coefficient 266:John Stuart Mill 156:Thorstein Veblen 55:(left wing) and 45:self-sufficiency 858: 857: 853: 852: 851: 849: 848: 847: 823: 822: 821: 820: 815: 811: 806:Wayback Machine 796: 792: 784: 777: 768: 766: 757: 756: 752: 744: 742: 736: 735: 731: 722: 718: 713: 709: 704: 700: 695: 691: 686: 682: 677: 673: 668: 664: 659: 655: 650: 646: 641: 637: 632: 628: 623: 616: 607: 605: 597: 596: 592: 587: 583: 578: 574: 565: 563: 558: 557: 553: 548:Wayback Machine 538: 534: 529: 522: 517: 510: 502: 500: 490: 489: 485: 476: 472: 467: 458:Market failures 425: 392: 386: 361: 348: 342: 318:social contract 311: 305: 289: 283: 274: 261: 255: 250: 214: 208: 151: 139:Milton Friedman 124: 118: 106: 100: 94:on inequality. 79: 73: 12: 11: 5: 856: 854: 846: 845: 840: 835: 825: 824: 819: 818: 809: 790: 775: 750: 729: 716: 707: 698: 689: 680: 671: 662: 653: 644: 635: 626: 614: 590: 581: 572: 551: 532: 520: 508: 483: 469: 468: 466: 463: 433:We are the 99% 424: 421: 417:Private sector 388:Main article: 385: 382: 377:Michael Sandel 360: 357: 344:Main article: 341: 338: 333: 332: 329: 307:Main article: 304: 301: 297:egalitarianism 285:Main article: 282: 279: 273: 270: 259:Utilitarianism 257:Main article: 254: 253:Utilitarianism 251: 249: 246: 210:Main article: 207: 204: 195:Price controls 150: 147: 120:Main article: 117: 114: 104:Libertarianism 102:Main article: 99: 98:Libertarianism 96: 86:, Karl Marx's 84:invisible hand 75:Main article: 72: 69: 57:libertarianism 13: 10: 9: 6: 4: 3: 2: 855: 844: 841: 839: 836: 834: 831: 830: 828: 813: 810: 807: 803: 800: 794: 791: 788: 782: 780: 776: 764: 760: 754: 751: 741: 740: 733: 730: 726: 720: 717: 711: 708: 702: 699: 693: 690: 684: 681: 675: 672: 666: 663: 657: 654: 648: 645: 639: 636: 630: 627: 621: 619: 615: 604: 600: 594: 591: 585: 582: 576: 573: 562: 555: 552: 549: 545: 542: 536: 533: 527: 525: 521: 515: 513: 509: 498: 494: 487: 484: 480: 474: 471: 464: 462: 459: 455: 453: 449: 448:welfare traps 445: 441: 436: 434: 430: 422: 420: 418: 414: 413:public sector 410: 406: 401: 397: 391: 383: 381: 378: 373: 371: 367: 366:Robert Nozick 358: 356: 354: 347: 339: 337: 330: 327: 326: 325: 323: 319: 315: 310: 302: 300: 298: 294: 288: 280: 278: 271: 269: 267: 260: 252: 247: 245: 241: 239: 235: 229: 227: 222: 218: 213: 205: 203: 200: 196: 192: 190: 186: 182: 177: 173: 169: 165: 161: 157: 148: 146: 144: 140: 136: 132: 131:laissez-faire 128: 123: 115: 113: 111: 105: 97: 95: 93: 89: 85: 78: 70: 68: 65: 60: 58: 54: 50: 46: 42: 38: 34: 29: 27: 22: 18: 812: 793: 767:. 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Retrieved 554: 535: 501:, retrieved 496: 486: 478: 473: 456: 440:poverty trap 437: 426: 393: 374: 362: 349: 334: 312: 290: 275: 262: 242: 230: 215: 199:monopolistic 193: 172:market power 152: 125: 107: 80: 61: 41:collectivism 30: 15: 287:Meritocracy 281:Meritocracy 238:utilitarian 189:aristocracy 183:and unfair 110:free market 43:to extreme 33:politicians 843:Inequality 827:Categories 769:2022-12-19 745:2022-12-19 608:2022-12-19 566:2022-12-19 503:2022-12-19 465:References 314:John Rawls 272:Motivation 127:Adam Smith 122:Capitalism 64:John Rawls 39:vary from 454:to work. 293:Confucius 226:democracy 217:Karl Marx 212:Communism 168:Galbraith 88:Socialist 53:communism 802:Archived 544:Archived 396:taxation 320:under a 234:scarcity 228:as won. 137:, where 19:and the 833:Justice 17:Justice 400:Sweden 21:market 26:moral 368:in 219:in 158:in 829:: 778:^ 761:. 617:^ 601:. 523:^ 511:^ 495:, 438:A 191:. 772:. 727:. 611:. 569:.

Index

Justice
market
moral
politicians
distributive justice
collectivism
self-sufficiency
political philosophies
communism
libertarianism
John Rawls
Distributive justice
invisible hand
Socialist
original position
Libertarianism
free market
Capitalism
Adam Smith
laissez-faire
neoclassical economics
Milton Friedman
meritocratic society
Thorstein Veblen
The Theory of the Leisure Class
conspicuously consumed
Galbraith
market power
classical economic
Social inequality

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