Equality of What? What do we mean by economic equality
Equality of What?
What do we mean by economic equality
Hilde Bojer
www.folk.uio.no/hbojer
hilde.bojer@econ.uio.no
28 April 2010
Equality of What? What do we mean by economic equality
Contents
Introduction
Welfarism
John Rawls and primary goods
The Capability Approach
Equality of What? What do we mean by economic equality
Introduction
Equality of What?
Question asked by Amartya Sen
All political philosophers advocate equality of some kind
Equality of rights as a minimum
Disagreement about economic equality
Equality of What? What do we mean by economic equality
Introduction
Equality of What?
Question asked by Amartya Sen
All political philosophers advocate equality of some kind
Equality of rights as a minimum
Disagreement about economic equality
Equality of What? What do we mean by economic equality
Introduction
Equality of What?
Question asked by Amartya Sen
All political philosophers advocate equality of some kind
Equality of rights as a minimum
Disagreement about economic equality
Equality of What? What do we mean by economic equality
Introduction
Equality of What?
Question asked by Amartya Sen
All political philosophers advocate equality of some kind
Equality of rights as a minimum
Disagreement about economic equality
Equality of What? What do we mean by economic equality
Introduction
Digression
Economic equality does not imply
religious, cultural, political or other kinds
of conformism
Both John Rawls and Amartya Sen are liberals
Sen: Development as Freedom
Rawls: advocates a liberal society that allows several
different, even non commensurable,
ideas of the good
Equality of What? What do we mean by economic equality
Introduction
Digression
Economic equality does not imply
religious, cultural, political or other kinds
of conformism
Both John Rawls and Amartya Sen are liberals
Sen: Development as Freedom
Rawls: advocates a liberal society that allows several
different, even non commensurable,
ideas of the good
Equality of What? What do we mean by economic equality
Introduction
Digression
Economic equality does not imply
religious, cultural, political or other kinds
of conformism
Both John Rawls and Amartya Sen are liberals
Sen: Development as Freedom
Rawls: advocates a liberal society that allows several
different, even non commensurable,
ideas of the good
Equality of What? What do we mean by economic equality
Introduction
Digression
Economic equality does not imply
religious, cultural, political or other kinds
of conformism
Both John Rawls and Amartya Sen are liberals
Sen: Development as Freedom
Rawls: advocates a liberal society that allows several
different, even non commensurable,
ideas of the good
Equality of What? What do we mean by economic equality
Introduction
Digression
Both advocate the freedom of the individual to pursue his own
life project, as long as this does not hinder the similar
freedom of other individuals
And both recognise that this freedom demands access to economic
resources.
Equality of What? What do we mean by economic equality
Introduction
Digression
Both advocate the freedom of the individual to pursue his own
life project, as long as this does not hinder the similar
freedom of other individuals
And both recognise that this freedom demands access to economic
resources.
Equality of What? What do we mean by economic equality
Introduction
Sen’s Equality of What?
also addresses
what kind of economic equality
Equality of What? What do we mean by economic equality
Introduction
Different equalities
I
The wage rate
I
Yearly earnings
I
Lifetime earnings
I
Individual income
I
Household income
I
Household income per equivalent adult
Equality of What? What do we mean by economic equality
Introduction
Different equalities
Equality of one of these indicators
normally implies inequality in the others
as long as people make different choices
Equality of What? What do we mean by economic equality
Introduction
Different equalities
We need a criterion to help us choose between them
A theory of the good that the economic variables
are supposed to further
I shall discuss three such ultimate goods:
I
welfare
I
primary goods
I
capabilities
Equality of What? What do we mean by economic equality
Introduction
Different equalities
We need a criterion to help us choose between them
A theory of the good that the economic variables
are supposed to further
I shall discuss three such ultimate goods:
I
welfare
I
primary goods
I
capabilities
Equality of What? What do we mean by economic equality
Introduction
Different equalities
We need a criterion to help us choose between them
A theory of the good that the economic variables
are supposed to further
I shall discuss three such ultimate goods:
I
welfare
I
primary goods
I
capabilities
Equality of What? What do we mean by economic equality
Introduction
Different equalities
The discussion is not only of interest to
economic egalitarians
It asks: which good or goods should be the aims
of the benevolent government in distributional
and other policies
It is related to, but not identical with,
the ‘Quest for a Measure of Social Welfare’
(Fleurbaey 2010)
An alternative to GDP: Gross Social Happiness
Equality of What? What do we mean by economic equality
Introduction
Different equalities
The discussion is not only of interest to
economic egalitarians
It asks: which good or goods should be the aims
of the benevolent government in distributional
and other policies
It is related to, but not identical with,
the ‘Quest for a Measure of Social Welfare’
(Fleurbaey 2010)
An alternative to GDP: Gross Social Happiness
Equality of What? What do we mean by economic equality
Introduction
Different equalities
The discussion is not only of interest to
economic egalitarians
It asks: which good or goods should be the aims
of the benevolent government in distributional
and other policies
It is related to, but not identical with,
the ‘Quest for a Measure of Social Welfare’
(Fleurbaey 2010)
An alternative to GDP: Gross Social Happiness
Equality of What? What do we mean by economic equality
Introduction
Different equalities
The discussion is not only of interest to
economic egalitarians
It asks: which good or goods should be the aims
of the benevolent government in distributional
and other policies
It is related to, but not identical with,
the ‘Quest for a Measure of Social Welfare’
(Fleurbaey 2010)
An alternative to GDP: Gross Social Happiness
Equality of What? What do we mean by economic equality
Welfarism
Welfarism
The self-evident goal of (benevolent) public policy?
Welfare can be understood in a plurality of ways
Synonymous with utility - happiness etc
as understood in utilitarianism and economic theory
Equality of What? What do we mean by economic equality
Welfarism
Welfarism
The self-evident goal of (benevolent) public policy?
Welfare can be understood in a plurality of ways
Synonymous with utility - happiness etc
as understood in utilitarianism and economic theory
Equality of What? What do we mean by economic equality
Welfarism
Welfarism
The self-evident goal of (benevolent) public policy?
Welfare can be understood in a plurality of ways
Synonymous with utility - happiness etc
as understood in utilitarianism and economic theory
Equality of What? What do we mean by economic equality
Welfarism
Welfare - utility - happiness
The individual herself decides what makes her happy
according to her own preferences
Preference utilitarianism
Consumer sovereignty
Respectful welfarism
The alternative: paternalism
Equality of What? What do we mean by economic equality
Welfarism
Welfare - utility - happiness
The individual herself decides what makes her happy
according to her own preferences
Preference utilitarianism
Consumer sovereignty
Respectful welfarism
The alternative: paternalism
Equality of What? What do we mean by economic equality
Welfarism
Welfare - utility - happiness
The individual herself decides what makes her happy
according to her own preferences
Preference utilitarianism
Consumer sovereignty
Respectful welfarism
The alternative: paternalism
Equality of What? What do we mean by economic equality
Welfarism
Some problems with respectful welfarism
I
Endogenous preferences
I
Adaptive preferences
I
Expensive preferences
I
Altruism
I
Envy
I
Unethical preferences
Equality of What? What do we mean by economic equality
Welfarism
Some problems with respectful welfarism
I
Endogenous preferences
I
Adaptive preferences
I
Expensive preferences
I
Altruism
I
Envy
I
Unethical preferences
Equality of What? What do we mean by economic equality
Welfarism
Some problems with respectful welfarism
I
Endogenous preferences
I
Adaptive preferences
I
Expensive preferences
I
Altruism
I
Envy
I
Unethical preferences
Equality of What? What do we mean by economic equality
Welfarism
Some problems with respectful welfarism
I
Endogenous preferences
I
Adaptive preferences
I
Expensive preferences
I
Altruism
I
Envy
I
Unethical preferences
Equality of What? What do we mean by economic equality
Welfarism
Some problems with respectful welfarism
I
Endogenous preferences
I
Adaptive preferences
I
Expensive preferences
I
Altruism
I
Envy
I
Unethical preferences
Equality of What? What do we mean by economic equality
Welfarism
Unethical preferences
Harsanyi: Unethical preferences should not be taken into account
But who decides which preferences are unacceptable? And how?
Example: Sexual harassment
Equality of What? What do we mean by economic equality
Welfarism
Unethical preferences
Harsanyi: Unethical preferences should not be taken into account
But who decides which preferences are unacceptable? And how?
Example: Sexual harassment
Equality of What? What do we mean by economic equality
Welfarism
Unethical preferences
Harsanyi: Unethical preferences should not be taken into account
But who decides which preferences are unacceptable? And how?
Example: Sexual harassment
Equality of What? What do we mean by economic equality
Welfarism
Welfarism (cont)
Possible solution: Material welfare only
But is it possible to separate material welfare from other variables?
Does not solve the problem of expensive preferences,
adaptive preferences,
endogenous preferences
Widespread assumption: equal preferences
Does not take the concept of preferences and utility seriously
Equality of What? What do we mean by economic equality
Welfarism
Welfarism (cont)
Possible solution: Material welfare only
But is it possible to separate material welfare from other variables?
Does not solve the problem of expensive preferences,
adaptive preferences,
endogenous preferences
Widespread assumption: equal preferences
Does not take the concept of preferences and utility seriously
Equality of What? What do we mean by economic equality
Welfarism
Welfarism (cont)
Possible solution: Material welfare only
But is it possible to separate material welfare from other variables?
Does not solve the problem of expensive preferences,
adaptive preferences,
endogenous preferences
Widespread assumption: equal preferences
Does not take the concept of preferences and utility seriously
Equality of What? What do we mean by economic equality
Welfarism
Welfarism (cont)
Possible solution: Material welfare only
But is it possible to separate material welfare from other variables?
Does not solve the problem of expensive preferences,
adaptive preferences,
endogenous preferences
Widespread assumption: equal preferences
Does not take the concept of preferences and utility seriously
Equality of What? What do we mean by economic equality
Welfarism
It follows, in my opinion, that:
Disposable household income per equivalent adult
is a useful measure of consumption possibilities
but should not be interpreted as a measure of welfare, material or
otherwise
Equality of What? What do we mean by economic equality
Welfarism
It follows, in my opinion, that:
Disposable household income per equivalent adult
is a useful measure of consumption possibilities
but should not be interpreted as a measure of welfare, material or
otherwise
Equality of What? What do we mean by economic equality
Welfarism
The background for the efforts of John Rawls and Amartya Sen
to find goods that are independent of preferences
but still not (too) paternalistic
Equality of What? What do we mean by economic equality
Welfarism
The background for the efforts of John Rawls and Amartya Sen
to find goods that are independent of preferences
but still not (too) paternalistic
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Primary goods
are goods that everyone wants more of
whatever his project for life
and whatever his conception of the final good
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Primary goods
are goods that everyone wants more of
whatever his project for life
and whatever his conception of the final good
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Primary goods
are goods that everyone wants more of
whatever his project for life
and whatever his conception of the final good
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Primary goods
Two such are
1. Income and wealth
2. The social bases of self-respect
Equality of What? What do we mean by economic equality
John Rawls and primary goods
The social bases of self-respect
Not widely discussed or known as far as I know
Important for HOW your economic resources are acquired
Examples: Women’s right to economic independence
Rights as opposed to means testing
Equality of What? What do we mean by economic equality
John Rawls and primary goods
The social bases of self-respect
Not widely discussed or known as far as I know
Important for HOW your economic resources are acquired
Examples: Women’s right to economic independence
Rights as opposed to means testing
Equality of What? What do we mean by economic equality
John Rawls and primary goods
The social bases of self-respect
Not widely discussed or known as far as I know
Important for HOW your economic resources are acquired
Examples: Women’s right to economic independence
Rights as opposed to means testing
Equality of What? What do we mean by economic equality
John Rawls and primary goods
The social bases of self-respect
Not widely discussed or known as far as I know
Important for HOW your economic resources are acquired
Examples: Women’s right to economic independence
Rights as opposed to means testing
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Income and wealth
(Or economic resources: Resourcism)
Criticisms: (mainly from Sen)
People have different needs
e.g. Ill-health, physical handicaps such as being blind,
pregnancy
Then, equality of economic resources implies differences in
quality of life, however defined
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Income and wealth
(Or economic resources: Resourcism)
Criticisms: (mainly from Sen)
People have different needs
e.g. Ill-health, physical handicaps such as being blind,
pregnancy
Then, equality of economic resources implies differences in
quality of life, however defined
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Income and wealth
(Or economic resources: Resourcism)
Criticisms: (mainly from Sen)
People have different needs
e.g. Ill-health, physical handicaps such as being blind,
pregnancy
Then, equality of economic resources implies differences in
quality of life, however defined
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Income and wealth
(Or economic resources: Resourcism)
Criticisms: (mainly from Sen)
People have different needs
e.g. Ill-health, physical handicaps such as being blind,
pregnancy
Then, equality of economic resources implies differences in
quality of life, however defined
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Income and wealth
Rawls’s argument:
Primary goods should be easy to understand and measure
suitable for democratic deliberation and decisions
My counter argument:
Income and wealth are not simple, easily measurable concepts
Individual or household income?
Annual or lifetime income?
And what about leisure?
Becker: Full Income
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Income and wealth
Rawls’s argument:
Primary goods should be easy to understand and measure
suitable for democratic deliberation and decisions
My counter argument:
Income and wealth are not simple, easily measurable concepts
Individual or household income?
Annual or lifetime income?
And what about leisure?
Becker: Full Income
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Income and wealth
Rawls’s argument:
Primary goods should be easy to understand and measure
suitable for democratic deliberation and decisions
My counter argument:
Income and wealth are not simple, easily measurable concepts
Individual or household income?
Annual or lifetime income?
And what about leisure?
Becker: Full Income
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Income and wealth
Rawls’s argument:
Primary goods should be easy to understand and measure
suitable for democratic deliberation and decisions
My counter argument:
Income and wealth are not simple, easily measurable concepts
Individual or household income?
Annual or lifetime income?
And what about leisure?
Becker: Full Income
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Income and wealth
Rawls’s argument:
Primary goods should be easy to understand and measure
suitable for democratic deliberation and decisions
My counter argument:
Income and wealth are not simple, easily measurable concepts
Individual or household income?
Annual or lifetime income?
And what about leisure?
Becker: Full Income
Equality of What? What do we mean by economic equality
John Rawls and primary goods
Income and wealth
Rawls’s argument:
Primary goods should be easy to understand and measure
suitable for democratic deliberation and decisions
My counter argument:
Income and wealth are not simple, easily measurable concepts
Individual or household income?
Annual or lifetime income?
And what about leisure?
Becker: Full Income
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability approach
Introduced by Amartya Sen
Also advocated by Martha Nussbaum
Researched and discussed by many more
HDCA: Human Development and Capability Association
The inspiration for The Human Development Index
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability approach
Introduced by Amartya Sen
Also advocated by Martha Nussbaum
Researched and discussed by many more
HDCA: Human Development and Capability Association
The inspiration for The Human Development Index
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability approach
Introduced by Amartya Sen
Also advocated by Martha Nussbaum
Researched and discussed by many more
HDCA: Human Development and Capability Association
The inspiration for The Human Development Index
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability approach
Introduced by Amartya Sen
Also advocated by Martha Nussbaum
Researched and discussed by many more
HDCA: Human Development and Capability Association
The inspiration for The Human Development Index
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Basic concepts:
The capability of achieving
an important functioning
Favourite example:
Fasting and starving
Fasting is voluntary
starving is involuntary: lacking the capability to eat your fill
The benevolent government should ensure that every individual has
the
capability of eating
but not force them to, in fact, eat.
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Basic concepts:
The capability of achieving
an important functioning
Favourite example:
Fasting and starving
Fasting is voluntary
starving is involuntary: lacking the capability to eat your fill
The benevolent government should ensure that every individual has
the
capability of eating
but not force them to, in fact, eat.
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Basic concepts:
The capability of achieving
an important functioning
Favourite example:
Fasting and starving
Fasting is voluntary
starving is involuntary: lacking the capability to eat your fill
The benevolent government should ensure that every individual has
the
capability of eating
but not force them to, in fact, eat.
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Basic concepts:
The capability of achieving
an important functioning
Favourite example:
Fasting and starving
Fasting is voluntary
starving is involuntary: lacking the capability to eat your fill
The benevolent government should ensure that every individual has
the
capability of eating
but not force them to, in fact, eat.
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Basic concepts:
The capability of achieving
an important functioning
Favourite example:
Fasting and starving
Fasting is voluntary
starving is involuntary: lacking the capability to eat your fill
The benevolent government should ensure that every individual has
the
capability of eating
but not force them to, in fact, eat.
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Basic concepts:
The capability of achieving
an important functioning
Favourite example:
Fasting and starving
Fasting is voluntary
starving is involuntary: lacking the capability to eat your fill
The benevolent government should ensure that every individual has
the
capability of eating
but not force them to, in fact, eat.
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Nussbaum names the capability of sexual enjoyment
Does not imply the maximum number of orgasms per capita
But forbids inter alia sexual mutilation of girls (and boys)
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Nussbaum names the capability of sexual enjoyment
Does not imply the maximum number of orgasms per capita
But forbids inter alia sexual mutilation of girls (and boys)
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Nussbaum names the capability of sexual enjoyment
Does not imply the maximum number of orgasms per capita
But forbids inter alia sexual mutilation of girls (and boys)
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Which are the IMPORTANT functionings?
Sen refuses to say: Every society should decide for itself
by democratic deliberation
(Cf. Rawls and primary goods)
Nussbaum has proposed a list
Much criticised
as have many others
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Which are the IMPORTANT functionings?
Sen refuses to say: Every society should decide for itself
by democratic deliberation
(Cf. Rawls and primary goods)
Nussbaum has proposed a list
Much criticised
as have many others
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Which are the IMPORTANT functionings?
Sen refuses to say: Every society should decide for itself
by democratic deliberation
(Cf. Rawls and primary goods)
Nussbaum has proposed a list
Much criticised
as have many others
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Which are the IMPORTANT functionings?
Sen refuses to say: Every society should decide for itself
by democratic deliberation
(Cf. Rawls and primary goods)
Nussbaum has proposed a list
Much criticised
as have many others
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Similarities to the Norwegian and other Nordic
surveys of living conditions (levekår)
which also stress the abilities of the individual to obtain his goals
and study e.g. her education and health
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach
Similarities to the Norwegian and other Nordic
surveys of living conditions (levekår)
which also stress the abilities of the individual to obtain his goals
and study e.g. her education and health
Equality of What? What do we mean by economic equality
The Capability Approach
Both the capability approach and the surveys of living conditions
satisfy the criterion of
Ethical individualism
In contrast to the concept of household income
Equality of What? What do we mean by economic equality
The Capability Approach
Both the capability approach and the surveys of living conditions
satisfy the criterion of
Ethical individualism
In contrast to the concept of household income
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach: some problems
I
Underspecified
I
No index
I
Paternalistic
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach: some problems
I
Underspecified
I
No index
I
Paternalistic
Equality of What? What do we mean by economic equality
The Capability Approach
The Capability Approach: some problems
I
Underspecified
I
No index
I
Paternalistic
Equality of What? What do we mean by economic equality
The Capability Approach
Some consequences are, in my opinion, clear:
Access to social security, education, health services
are important capabilities
secured by the traditional welfare state
Equality of What? What do we mean by economic equality
The Capability Approach
Some consequences are, in my opinion, clear:
Access to social security, education, health services
are important capabilities
secured by the traditional welfare state
Equality of What? What do we mean by economic equality
The Capability Approach
Some consequences are, in my opinion, clear:
Access to social security, education, health services
are important capabilities
secured by the traditional welfare state
Equality of What? What do we mean by economic equality
The Capability Approach
Income capability:
The capability of earning your own income
women’s economic independence
determined by inter alia the wage rate and available time
available time is constrained by duties e.g. of child care
Equality of What? What do we mean by economic equality
The Capability Approach
Income capability:
The capability of earning your own income
women’s economic independence
determined by inter alia the wage rate and available time
available time is constrained by duties e.g. of child care
Equality of What? What do we mean by economic equality
The Capability Approach
Income capability:
The capability of earning your own income
women’s economic independence
determined by inter alia the wage rate and available time
available time is constrained by duties e.g. of child care
Equality of What? What do we mean by economic equality
The Capability Approach
Income capability:
The capability of earning your own income
women’s economic independence
determined by inter alia the wage rate and available time
available time is constrained by duties e.g. of child care