A Capitalist Conception of Justice

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A Capitalist Conception of Justice

• By
• Irving Kristol

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Adam Smith the intellectual father of
capitalism

• In The Wealth of Nations he says
• People are economic beings who pursue their
  self-interest within a free market of barter and
  exchange that functions to get what each one
  needs (or wants) by giving what others need (or
  want).
• Although the resulting distribution of wealth
  will be unequal, it will be fair provided
  exchanges are freely made.

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Capitalism in Action One Red Paper Clip

• 1995 cube van (200k mi)
• Recording contract (complete CD with web
  marketing)
• 1 year free rent in Phoenix
• 1 afternoon with Alice Cooper
• KISS snowglobe
• Role in Corbin Bernsen movie
• House in Kipling, Sask 7/12/2006

• Starts with one red paper clip 7/12/2005
• Fish pen
• E.T. doorknob
• Coleman stove
• 1000 watt generator
• 1 keg of beer 1 Budweiser sign
• Skiddoo
• Trip for two to Yahk, BC (pop. 400)

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Adam Smith second verse

• In The Theory of Moral Sentiments he says
• People also are social beings who have sympathy
  for their fellow human beings who, for one reason
  or another, are unable to fully participate in
  the free market of economic exchange AND
  therefore have unmet needs.
• Help should be given such people, but it should
  exist outside the market and should flow from
  individual feeling rather than from authoritarian
  decisions by the government.

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Kristols Capitalist Conception of Justice

• Capitalist justice ? Social justice
• Capitalist justice equality before the law
  equality of political rights equality of
  economic opportunity.
• Capitalist justice ? economic equality in fact.
• Social justice adds the idea of economic
  equality.
• A free market will raise the tide and thus float
  more boats, NOT make all boats equal
• However, the resulting unequal distribution of
  wealth will be whatever it turns out to be -- and
  by definition it will be as just as the free
  market can make it.

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Kristols Capitalist Conception of Justice,
continued

• Authoritarian manipulation of the free market is
  not the answer.
• Overall production of wealth will be decreased.
• No clear standard for the fairest redistribution
  of wealth.
• Voluntary redistribution of wealth is, however,
  consistent with free market economics.
• What does this mean for taxes?

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Rawls remembered.

• Rawls second principle assumes an unequal
  distribution of benefits in society.
• And Rawls provides a basis for asking whether a
  particular pattern of inequality is fair.
• Thought experiment original position veil of
  ignorance.
• Principle the inequality must benefit everyone
  to some degree, particularly the less advantaged.
• This could provide a basis for voluntary
  redistribution.