218 Questions
What is the primary concern of economic justice and economic rights in this context?
Distribution of wealth and production of wealth
What is the assumption underlying the discussion of economic justice and economic rights?
That a man has some property in the form of labor power or capital instruments
What is excluded from consideration in the discussion of economic justice and economic rights?
Wealth obtained by charity or gift
What is the necessary condition for a man to justly acquire additional property?
That he has some property in the form of labor power or capital instruments
What is the basis for a man's just claim to property rights in wealth produced?
That he has property rights in factors productive of wealth
What is the relationship between property rights in factors productive of wealth and property rights in the wealth produced?
They are interdependent
What is the consequence of a man having no property rights in factors productive of particular wealth?
He can have no basis for a just claim to property rights in the wealth produced
What is the context in which the statement 'where there is no property, there can be neither justice nor injustice' is applied?
Application to economic affairs and the distribution of wealth
What is the basis for a person's just claim to a share in the distribution of wealth produced?
Their contribution to the production of wealth through their labor power or capital
What is the main difference between Crusoe's ownership of his labor power and his ownership of Friday's labor power?
Crusoe has a natural right to control and dispose of his own labor power
What is the primary way in which Smith can participate in the production of wealth?
By contributing his labor power
What is the basis for the justice of laws regulating inheritance?
The standards governing the relations between the State and the owners of property
What is the primary difference between Crusoe's economy before and after the advent of Friday?
The presence of a slave
What is the defining characteristic of an independent contributor to the production of wealth?
They participate in the production of wealth through their own property
What is the primary reason why Crusoe can rightfully claim all the wealth produced by Friday?
Because Friday is not an independent contributor
What is the primary difference between Crusoe's relationship with Friday and his relationship with Smith?
Crusoe owns Friday's labor power, but not Smith's
What is the significance of the Crusoe economy in the context of understanding the production of wealth?
It highlights the distinction between independent and non-independent contributors to the production of wealth
What is the underlying principle of the distribution of wealth produced?
Each person should receive a share based on their contribution
What is the key difference between Smith's participation in production and Friday's?
Smith contributes to production independently, while Friday does not
What is the proposed proportion of Smith's share in the distribution of wealth?
One-tenth of the total final product
What is the principle of justice that applies to the distribution of wealth to those who have participated in its production?
Each participant is entitled to a share that is proportionate to their contribution
What is the basis of the rights of property engaged in the production of wealth?
The right to receive a proportionate share of the wealth produced
How can the economic value of each participant's contribution be impartially or objectively determined?
Through free competition
What is the problem that Aristotle first raised but failed to solve, according to Karl Marx?
The problem of finding an objective measure of the economic value of goods and services
What is the principle of justice in exchange that Marx accepts from Aristotle?
That the things exchanged should be of equal value
What is an example of a distributive principle not based on justice or property rights?
The principle of charity
Why might Crusoe give Smith additional wealth in the example of Smith's household of seven?
Because Smith's family is in need of support
What is the relationship between the value of a productive factor and the wealth it produces?
The value of a productive factor is proportional to the wealth it produces
What is the main idea behind Marx's solution to the problem of commensurating qualitatively different commodities?
Measuring value through the amount of human labor involved in production
What is Aristotle's main concern when it comes to exchanging qualitatively different things?
Finding a common measure of value
According to Marx, what prevented Aristotle from discovering the concept of value?
Living in a society founded on slavery
What does Aristotle propose as a unit of measurement for commensurating the value of goods?
Demand
What is the implication of Marx's labor theory of value being false?
Aristotle's solution is the only one available
What is the nature of exchange value, according to the passage?
Subjective and based on opinion
What is required for Aristotle's solution to work in practice?
Free and workable competition
What is the problem that both Marx and Aristotle attempt to solve?
How to commensurate the value of heterogeneous things
What is the implication of imposing an arbitrary opinion of value?
It must be imposed by force
What does Aristotle say is required for a just exchange of qualitatively different things?
Equivalent value
What concept is interchangeably referred to as 'demand' and 'supply and demand'?
Free competition
According to Aristotle, what is the result of free and workable competition in a market?
Perfectly commensurable values
What is the primary objective of measuring the equivalence of values in the exchange of heterogeneous commodities?
To achieve justice in the exchange
According to the labor theory of value, what is the source of all value in economic goods and services?
Labor only
What is the implication of the labor theory of value on the distribution of wealth?
Labor is entitled to the whole of the wealth produced
What is the concept of 'congealed labor' as suggested by Marx?
Labor accumulated in machines
What is the unit of measurement of value in a money economy?
Unit of money
What is the primary difference between the Mechanics' Union of Trade Associations and Marx's labor theory of value?
The Mechanics' Union asked for an equitable share of wealth
What is the implication of the labor theory of value on the concept of just distribution of wealth?
There is no problem of how to divide the wealth produced
What is the main objective of measuring the relative contribution of different factors in the production of wealth?
To allocate a just distribution of wealth
What is Marx's argument about private capital property?
It should be expropriated by the State and operated for the general welfare of the working masses
Why are the consequences of the labor theory of value considered false?
Because the labor theory of value is false, and capital is a producer of wealth
What is the problem that needs to be solved, according to the text?
The problem of achieving a just distribution of wealth while preserving the economy and individual freedom
What is the limitation of the labor theory of value, even if it were true?
It would not provide a just principle of distribution
What is Lenin's argument against a system of distribution based on workers' rights?
It would not provide a just principle of distribution based on workers' needs
What is the role of the State in Marx's argument?
To operate capital instruments for the general welfare of the working masses
What is the goal of the economic system, according to the text?
To achieve a just distribution of wealth while preserving the economy and individual freedom
What is the relationship between the labor theory of value and the distribution of wealth?
The labor theory of value is false, and therefore, its consequences are also false
What happens to labor's standard of living if the productiveness of submanagerial and subtechnical labor is a relatively diminishing quantity?
It dwindles to bare subsistence or even falls below it
What is the primary difference between a pre-industrial economy and an industrial economy?
One has human labor as the chief productive factor, the other does not
What would happen if labor were paid according to its contribution to production in a competitive evaluation?
Labor's standard of living might dwindle to bare subsistence or even fall below it
What is the consequence of a competitive evaluation of labor's contribution to production in an industrial economy?
Labor's standard of living might dwindle to bare subsistence or even fall below it
What is the relationship between the productiveness of labor and the total wealth produced?
As the productiveness of labor increases, the total wealth produced increases
What is the problem with distributing wealth according to the principle of justice in an industrial economy?
It might lead to labor's standard of living dwindling to bare subsistence or even falling below it
What is the key factor in determining the standard of living of those who work for a living?
The evaluation of labor's contribution to production
What is the consequence of introducing productive forces other than human labor in an economy?
The productiveness of submanagerial and subtechnical labor is a relatively diminishing quantity
What is the main topic of discussion in the passage?
The concept of economic justice and its relation to welfare of workingmen
What is the key difference between the economies of Alpha and Beta?
The presence of beasts of burden in Alpha
What is the implication of the comparison between Alpha and Beta?
That the total wealth produced is not solely dependent on human labor
What is the underlying principle of the distribution of wealth?
The principle of justice stated in the passage
What is the main difference between the economy of Alpha and a non-industrial economy?
The substitution of machines for animals and men for slaves
What is the primary concern of the passage?
The problem of distributive justice and the welfare of workingmen
What is the implication of the passage on the distribution of wealth?
That the distributive share to which labor is entitled does not necessarily increase with every increase in total productiveness
What is the relationship between the productiveness of an economy and the welfare of workingmen?
The relationship between the two is complex and depends on various factors
What is the primary difference between the slave owners in Alpha and Beta?
The presence of beasts of burden in Alpha
What is the underlying assumption of the passage?
That the total wealth produced is dependent on various productive factors
What is the primary concern of the economy described in the passage?
Distributing wealth according to justice
What is the relationship between labor power and capital instruments in the economy?
Labor power and capital instruments are equally important
What is the primary consequence of the concentration of economic and political power in the hands of the state?
Infringement of individual freedom
What is the primary way in which labor unions support workers in the economy?
Through collective bargaining
What is the primary difference between the economies of the United States and Soviet Russia?
The role of private property
What is the primary reason why laborers may not receive a fair share of the wealth produced?
Because of the power of capital instruments
What is the primary goal of the economy described in the passage?
To provide a decent standard of living for all families
What is the primary role of government in the economy?
To promote full employment
What is the primary consequence of the distribution of wealth in the United States?
Improved standard of living for laborers
What is the primary principle of distributive justice in the economy?
Each according to his deserts
What is the primary problem in the industrial economy described in the text?
Underconsumption and overproduction
What is the solution proposed to the problem of distribution of wealth?
Respect for property rights and economic justice
Why does Marx predict the eventual collapse of capitalism?
Due to the exploitation of labor
What is the requirement for solving the problem of underconsumption and overproduction?
Widespread diffusion of purchasing power
What is the proposed solution to the problem of wealth distribution?
Principles of economic justice and respect for property rights
What is the consequence of the industrial economy failing to solve the problem of underconsumption and overproduction?
Cycles of boom and bust
What is the relationship between technological progress and the contribution of mechanical labor to wealth production?
Technological progress decreases the contribution of mechanical labor
What is the natural human right recognized in the proposed solution to the problem of wealth distribution?
The right to participate in the production of wealth
What is the principle of economic justice recognized in the proposed solution?
Distribution based on contribution
What is the problem of distributive justice that the proposed solution attempts to solve?
The problem of distributing wealth produced
What is the primary moral duty that individuals owe to one another in a society?
To avoid injuring one another
According to the fourth precept of justice, how should wealth be distributed?
Based on the principle of rendering to each man what is rightfully his due
What is the second principle of justice concerned with?
Economic rights of individuals
Why might society need to intervene in economic activity?
To prevent individuals from injuring others
What is the common goal of the principles of justice?
To ensure fairness and avoid harm to others
How many principles of justice are needed to solve the problem stated in the text?
Three
What is the relationship between the third precept and the principle of distributive justice?
The principle of distributive justice is a special application of the third precept
What is the implication of the third principle of justice?
That each individual receives what is rightfully theirs
What is the principle of justice based on in the production and distribution of wealth?
The contribution each participant makes to the production of wealth
What is the right that every man has, according to the principle of participation?
The right to earn a living
What is the limitation placed on the ownership of productive property?
The ownership must not exclude others from participating in production
What is the basis for the distribution of wealth among participants?
The principle of distribution
What is the necessary condition for a viable income?
Ownership of productive property
What is the principle that applies to the production and distribution of wealth?
All of the above
What is the consequence of not having property rights in the means of production?
Inability to earn a living
What is the underlying principle of the distribution of wealth?
Each participant receives a share proportionate to their contribution
What is the primary consequence of concentrated ownership of capital in an economy?
Exclusion of some individuals from earning a viable income
What is the basis of effective participation in the production of wealth?
Private ownership of labor and capital
What is the significance of the three principles mentioned in the text?
They outline the conditions for just organization of any economy
What is the consequence of a man having no property rights in factors productive of wealth?
He can participate in production but cannot earn a viable income
What is the primary concern of the text?
The distribution of wealth in a capitalist economy
What is the relationship between the concentration of capital ownership and the distribution of wealth?
Concentration of capital ownership leads to unequal distribution of wealth
What is the principle of justice in the distribution of wealth and political status?
Equals should be treated equally, and unequals unequally
What is the basis for the democratic distribution of citizenship?
All men are by nature equal
What is the rule of justice in the exchange of heterogeneous goods?
Things exchanged should be of equivalent value
What is the implication of oligarchical restrictions of citizenship and suffrage?
It is unjust because it treats equals unequally
What is the significance of the fact that men are individually different and unequal?
It calls for an unequal distribution of political offices or functions
What is the relationship between the dignity of being human and the capacity for active participation in political life?
The dignity of being human confers the capacity for active participation in political life
What is the principle of justice that applies to the distribution of political status and wealth?
Equals should be treated equally, and unequals unequally
What is the basis for the just distribution of wealth and political status?
The fact that all men are by nature equal
What is the essential requirement for distributing wealth justly among citizens in a democratic society?
According to one's contribution to the total wealth produced
Why is the principle of distributive justice inadequate in solving the problem of economic justice?
It does not consider the natural economic right of every man to participate in the production of wealth
What is the basis for determining the distributive shares of wealth among participants in production?
Based on their contribution to the total wealth produced
What is the primary concern of distributive justice in the context of production and wealth distribution?
The distribution of wealth proportionate to individual contributions
What is the flaw in applying the principle of distributive justice in a pre-industrial slave economy?
It deprives men of their natural right to earn a living
What is the condition for achieving distributive justice in the distribution of wealth?
Free and workable competition must exist
What is the purpose of applying the principle of distributive justice to the distribution of wealth?
To distribute wealth proportionate to individual contributions
What is necessary for a just economy, in addition to the principle of distributive justice?
Every household must have the opportunity to participate in production
What is the relationship between the value of a participant's contribution and their distributive share of wealth?
Directly proportional
What is the primary objective of applying the principle of distributive justice to the distribution of wealth?
To distribute wealth justly among participants in production
Why is it necessary to discuss the primary distribution of wealth separately from the secondary distribution of wealth?
Because the primary distribution directly results from participation in production, whereas secondary distribution is unrelated to production.
What is the main concern regarding the principle of distribution that is being discussed?
The principle is wrong because it does not consider the unpaid-for factors of production.
What is the significance of accumulated scientific knowledge in the production of wealth?
It is a critical unpaid-for factor in the production of wealth.
Why do capital instruments, such as machines, embodying scientific discoveries or inventions, raise concerns about distributive justice?
Because they contain an 'unearned increment' that benefits their owners.
What is the author's conclusion regarding the principle of distributive justice?
It is neither wrong nor inadequate.
What is the main purpose of discussing the primary distribution of wealth?
To evaluate the fairness of the wealth distribution process.
What is the relationship between the construction of capital instruments and funded knowledge?
Funded knowledge is used to construct capital instruments.
What is the author's response to the criticism of the principle of distributive justice?
The criticism is invalid and the principle is sound.
What is the significance of public services, such as good public roads and an efficient postal system, in the production of wealth?
They are critical unpaid-for factors in the production of wealth.
What is the source of the ideas that are used to produce wealth?
The human race as a whole
What is the purpose of patent laws?
To encourage inventors by giving them a property right in their contribution
What happens to an invention after the patent rights expire?
It becomes public domain and can be used by anyone without payment
What is the principle of distributive justice in relation to the use of knowledge?
Those who use knowledge productively should have a greater right to the wealth produced
What is the significance of the domestication of animals in the context of technologically applicable knowledge?
It was a technological feat that benefited all of humanity
What is the role of society and the state in relation to knowledge?
To provide an equal opportunity for all to access and use knowledge
What is the purpose of free public libraries and universal, free public schooling?
To provide an equal opportunity for all to access and use knowledge
What is the relationship between the common inheritance of knowledge and the wealth produced by it?
The common inheritance of knowledge does not entitle all to an equal share of the wealth produced
What is the basis of the equal right to use knowledge?
The fact that knowledge is the common inheritance of all humanity
What is the primary concern of the author in the context of production of wealth?
Maintaining property rights of individuals
Who has the sole right to claim a distributive return for contributions to production?
The purchaser of the product
What is the condition for a man to justly acquire additional property?
He must make use of his labor power in producing wealth
What is the basis for a person's just claim to a share in the distribution of wealth?
Their productive use of the funded common knowledge of mankind
What is the purpose of the patent laws mentioned in the passage?
To provide a basis for specific contractual arrangements
What is the significance of the funded common knowledge of mankind in the production of wealth?
It is a public domain that all men are equally entitled to use
What is the role of government in the production of wealth?
To provide services that promote the production of wealth
What is the principle of justice that applies to the distribution of wealth?
Each person receives a share of the wealth corresponding to their productive use of the funded common knowledge of mankind
What is the relationship between property rights in factors productive of wealth and property rights in the wealth produced?
The latter is a consequence of the former
What is the primary difference between the rights of property engaged in the production of wealth and the rights of property in the wealth produced?
The former is a prerequisite for the latter
What is the primary focus of the third precept in the fourfold formulation of the general meaning of justice?
Rendering to each man what is his due by right
What is the significance of life, liberty, and the pursuit of happiness in the context of justice?
They are among man's natural and inalienable rights
What is the fundamental right that derives from a person's right to life?
Right to a living wage
What is the primary concern in the organization of an economy, according to the passage?
Recognizing and protecting the rights of man as an economic person
What is the significance of man's right to property in his own labor power?
It is the primary right of man as an economic person
What is the primary condition for a person's right to subsistence?
Their ability to participate in the production of wealth
What is the consequence of a man having no property rights in factors productive of wealth?
He cannot participate in the production of wealth
What is the necessary condition for a person to justly acquire additional property?
Their ability to participate in the production of wealth
What is the primary difference between man's natural rights as a human being and man's natural rights as an economic person?
The former belong to man as a human being, while the latter belong to man as an economic person
What is the relationship between a person's right to earn a living and their duty to contribute to the production of wealth?
A person's right to earn a living is conditional upon their duty to contribute to the production of wealth
What is the primary purpose of the rights of man as an economic person?
To recognize and protect man's natural rights in the economy
What is the primary difference between the condition of slavery and the condition of those who have productive property but are unable to use it to earn a living?
The ability to participate in the production of wealth
What is the significance of the two paramount economic rights mentioned in the passage?
They are essential for the just organization of an economy
What is the basis for a person's just claim to a share in the distribution of wealth?
Their participation in the production of wealth
What is the primary way in which a man can exercise his right to earn a living?
By participating in the production of wealth
What is the basis for the principle of distributive justice?
The contribution made to the production of wealth
What is the primary requirement for a man to justly claim a share in the distribution of wealth?
He must participate in the production of wealth
What is the primary difference between a chattel slave and a man who cannot find employment?
Their ability to participate in the production of wealth
What is the primary reason why labor would not earn a living wage in an advanced industrial economy?
because the value of labor's services would be objectively and impartially evaluated under conditions of free competition
What is the right that entails a right to produce wealth in a manner consistent with the existing state of technology?
the right to participate in production
How can a household participate in the production of wealth?
through combinations of the productive employment of one's own labor power and the productive employment of the capital instruments in which one has property
What is the principle that prevents the concentration of capital ownership from excluding some men or households from participation in production?
the principle of limitation
What is the basis of the right to earn a viable income?
the right to own property
In what type of economy do the principles of distribution and participation apply?
industrial economy
What is the relationship between labor power and capital instruments?
Labor power and capital instruments are equally productive
What is the consequence of the concentration of capital ownership?
some men or households are excluded from participation in production
What is the basis of the right to earn a viable income through the productive use of one's private property?
the principle of property
What is the significance of the principle of limitation?
it prevents the concentration of capital ownership
What principle of distribution is mentioned in the text as being based on a principle of charity divorced from property rights?
From each according to his ability, to each according to his needs
What is the result of the concentration of capital ownership?
Monopolization of the principal means of production
What is the consequence of concentrated ownership of capital?
Violates the common good and does direct injury to individuals
What is the requirement for participation in the production of wealth?
Ownership of capital
What is the purpose of legislation in the context of the principle of limitation?
To prevent the concentration of capital ownership
What is the consequence of the absence of laws designed to make the principle of limitation effective?
The principles of distribution and participation are not observed
What is the limit imposed by the principle of limitation on the ownership of capital?
A variable upper limit determined empirically
What is the relationship between the ownership of capital and the production of wealth?
Ownership of capital is necessary for the production of wealth
What is the consequence of not allowing the concentration of capital ownership beyond a certain point?
It promotes the common good and benefits all individuals
What is the purpose of the second part of the book?
To outline a practical program for accomplishing the capitalist revolution
What is the primary condition required for a person to earn a viable income?
The person has property that can be effectively used to participate in the production of wealth
What is the consequence of labor becoming less productive of wealth?
The ownership of labor power becomes less adequate to satisfy the principle of participation
What is the primary difference between justice and charity?
Justice is the basis of human co-existence, while charity is an embellishment of it
What is the requirement for a person to participate effectively in the production of wealth?
The person participates in the production of wealth by means consistent with the existing state of technology
What is the consequence of a large number of households not participating in production through the ownership of capital instruments?
The full employment of those whose only property is labor power is not guaranteed
What is the primary difference between the right to obtain subsistence by earning it and the right to work and the right to a just return for work done?
The right to obtain subsistence by earning it involves the right to participate effectively in the production of wealth
What is the primary requirement for a person to have a viable income?
The person has property that can be effectively used to participate in the production of wealth
What is the consequence of the increasing productive power of capital instruments?
Labor becomes less productive of wealth
What is the primary difference between the organization of the economy and private or public charity?
The organization of the economy is primarily concerned with justice, while private or public charity is primarily concerned with charity
What is the primary requirement for a person to have a just claim to a share of the wealth produced?
The person has property that can be effectively used to participate in the production of wealth
What is the main concern of John Stuart Mill's essay On Liberty?
Defining the sphere of actions in which the individual is justly entitled to be free from interference
What is the primary limitation on individual liberty to acquire wealth?
To prevent harm to others
What is the necessary condition for effective participation in democratic self-government?
Suffrage
What is the primary consequence of not having property rights in factors productive of wealth?
Inability to participate in the production of wealth
What is the basis for a justifiable limitation on individual liberty to acquire wealth?
Concern for the rights of others
What is the relationship between political freedom and justice in a democratic polity?
They are widely diffused as citizenship
What is the primary difference between a citizen and a citizen-capitalist in a truly capitalist economy?
Level of ownership of capital
What is the primary consequence of extensive ownership of capital in an industrial economy?
Reduction of others' participation in the production of wealth
Study Notes
Property and Justice
- The statement "where there is no property, there can be neither justice nor injustice" is often interpreted to mean that property is a prerequisite for justice.
- This text is concerned with the application of this statement to economic affairs, specifically the distribution of wealth and its relation to production.
How to Justly Acquire Property
- A person can justly acquire additional property if they already have some property (e.g. labor power, capital instruments).
- If a person has no property, they have no basis for a just claim to property rights in the wealth produced.
- When a person owns all the instruments of production, they can lay just claim to all the wealth produced.
Distribution of Wealth
- If several people together employ their property in the production of wealth, each person's just share is proportionate to the contribution they made.
- A person who participates in production independently, using their own labor power, has a right to claim a share in the distribution of wealth.
- The value of each person's contribution can be impartially and objectively determined through free competition.
Examples of Property and Production
- In the case of Robinson Crusoe, he is entitled to all the wealth he produces because he owns all the capital instruments and labor power.
- If Friday, a chattel slave, is introduced, Crusoe can rightfully claim all the wealth produced because Friday is property used by Crusoe.
- If Smith, a free person, participates in production using his own labor power, he has a right to claim a share in the distribution of wealth.
Determining Value
- The objective and common measure of exchange value is human labor, according to Marx's labor theory of value.
- Aristotle's solution is that the value of goods and services can be made commensurable by reference to demand.
- In a free market, the value of goods and services is determined by supply and demand, which reflects the free play of opinions of all potential buyers and sellers.
Free Competition and Economic Value
- Free competition is the only accurate, objective, and impartial means of measuring the equivalence of values for the purpose of justice in the exchange of heterogeneous commodities.
- Free competition is also the only way to determine the relative contribution of different factors in the production of wealth, in order to allocate a just distribution of the wealth produced.
Labor Theory of Value
- According to the labor theory of value, labor is the source of all value in economic goods and services.
- If the labor theory of value were true, labor would be entitled to the whole of the wealth produced.
- However, the labor theory of value is false, and capital is also a producer of wealth.
Problem of Distribution
- The problem of achieving a just distribution of wealth produced in an industrial society while preserving the economy, securing economic welfare, and maintaining individual freedom remains to be solved.
The Problem of Justice and Welfare in an Industrial Economy
The Conflict between Distributive Justice and Welfare
- In an industrial economy, the increasing productiveness of labor does not necessarily lead to a larger distributive share of wealth for labor.
- As machines become more efficient, the productiveness of human labor diminishes, potentially leading to a decrease in labor's standard of living.
- The principle of distributive justice, which awards wages based on labor's contribution to production, may work against the welfare of working-class people.
The Comparison of Two Slave Economies
- A hypothetical slave economy with beasts of burden (Alpha) would produce more wealth than a similar economy without (Beta).
- The difference in productiveness is due to the presence of productive factors other than human labor (animal power).
- This illustrates that the greater productiveness of an economy does not necessarily result from the greater productiveness of human labor.
The Impact of Industrialization on Labor
- In an industrial economy, the contribution of labor to production decreases relative to other productive factors (capital instruments).
- As a result, labor's distributive share may be smaller than what it would justly earn, leading to a possible decline in the standard of living.
- Labor unions and government support may be necessary to ensure a reasonable subsistence or decent standard of living for working-class people.
The Critical Problem of Industrial Economy
- Is it possible to order an industrial economy to:
- Provide all families with a decent standard of living?
- Preserve and respect private property rights in capital instruments and labor power?
- Distribute wealth according to the principle of distributive justice?
The Limitations of the Current System
- The economy of the United States, often referred to as "welfare capitalism," has achieved a high standard of living but at the expense of sacrificing property rights and distributive justice.
- The distribution of wealth is largely influenced by labor unions and government support, rather than by the principle of distributive justice.
The Potential Solution
- The solution to the problem involves full respect for property rights and economic justice, recognizing each household's natural human right to participate in production through the ownership and application of productive property.
- This solution requires supplementation by two additional principles of justice to be effective.
The Three Principles of Justice
- The four moral duties of justice: • Act for the common good of all • Avoid injuring one another • Render to each man what is rightfully his due • Deal fairly with one another in the exchange of goods and distribution of wealth, position, status, rewards, and punishments
The Principle of Distribution
- Each participant in production should receive a share proportionate to the value of their contribution
- This principle is based on the idea that each participant is rightfully entitled to receive the wealth they produce
- Free competition ensures impartial evaluation of exchanges, resulting in a share received by each participant equivalent in value to their contribution
The Principle of Participation
- Every man has a natural right to life, including the right to maintain and preserve their life by producing wealth or participating in its production
- This principle states that every man has a right to earn a living by participating in the production of wealth
- The right to earn a living is a right to property in the means of production, such as labor power or capital
- Every household or consumer unit must own property in the means of production capable of earning a viable income
The Principle of Limitation
- No one has the right to extensive ownership of the means of production that excludes others from participating in production to earn a viable income
- The ownership of productive property by an individual or household must not be allowed to increase to the point where it injures others by excluding them from earning a viable income
- This principle opposes chattel slavery, as it makes men propertyless and deprives them of their natural right to earn a living
- In a capitalist economy, injustice occurs when the ownership of capital is highly concentrated, excluding others from participating in production to earn a viable income
The Principle of Distribution
- The principle of distribution is based on the rule of equality, where exchangeable goods should be of equivalent value.
- The principle also applies to the distribution of wealth, where equals should be treated equally, and unequals unequally in proportion to their inequality.
- The application of this rule depends on the ascertainment of the facts of equality and inequality.
The Distribution of Citizenship
- The fact that men are by nature equal makes the democratic distribution of citizenship, universal and equal suffrage, just.
- All men are alike in their natural possession of the dignity of being human and have the natural endowments of reason and freedom, which confer on all the capacity for active participation in political life.
- Oligarchical restrictions of citizenship and suffrage are unjust, as they treat equals unequally.
The Distribution of Political Offices
- The distribution of political offices should be based on merit, where men are selected for their hierarchy of public offices or functions according to their ability.
- This is essential to the political justice of a democracy, and ensures that men of greater ability are placed in positions of greater responsibility.
The Distribution of Wealth
- The principle of distribution applies to the distribution of wealth, where each participant in production receives a share proportionate to the value of their contribution.
- The distribution of wealth should be based on free and workable competition, which ascertains the facts about the equal or unequal value of the contributions made by each participant in production.
Limitations of the Principle of Distribution
- The principle of distribution does not take into account every man's natural economic right to share in the distribution of wealth as a result of participating in its production.
- The principle does not consider whether the existing state of affairs is just in other respects, such as providing every household with the opportunity to participate in production to an extent capable of earning a viable income.
Unpaid-for Contributions
- Unpaid-for contributions, such as accumulated scientific knowledge and government services, contribute to the production of wealth but are not paid for.
- These contributions do not represent private property, and therefore, no one can justly claim a return out of the primary distribution of the wealth produced.
The Problem of Unpaid-for Contributions
- If unpaid-for contributions are not paid for, how can it be said that each participant in production receives a distributive share that is proportionate to the competitively determined value of their contribution?
- Does the income received by owners of capital instruments contain an "unearned increment" - a payment to them for something they did not contribute?
The Solution to the Problem
- The principle of distribution is not wrong or inadequate, as it takes into account the contribution of unpaid-for factors to the production of wealth.
- The equal right of every man to appropriate and use knowledge that belongs to all men in common does not entitle those who make no use of such knowledge to share equally in the wealth produced.
- The principle of distribution recognizes that the production of wealth is a current activity for a current result, and that those who take advantage of the common knowledge of mankind and use it in the production of wealth have no obligation to share their current returns with those who made the discoveries or inventions.
The Principle of Participation
- The principle of participation is based on the right to earn a living through one's own labor power or property.
- Every man or family has the right to participate in the production of wealth to earn a viable income.
- The principle of participation implies that an economy should be organized to ensure that every individual has the opportunity to participate in production and earn a living wage.
Two Basic Rights
- The right to property in one's own labor power
- The right to participate in the production of wealth through the ownership of capital instruments or labor power
Effective Participation
- In an industrial economy, the ownership of labor power is not enough to ensure a viable income.
- Effective participation requires the ownership of capital instruments, such as shares of capital stock, to participate in the production of wealth.
- A household may participate in production through a combination of labor power and capital instruments.
The Principle of Limitation
- The principle of limitation is implied by the principles of distribution and participation.
- It prevents the concentration of ownership of capital instruments, which can exclude others from participating in the production of wealth.
- The principle of limitation ensures that everyone has access to the means of production and can participate effectively in the production of wealth.
Concentration of Capital Ownership
- Concentration of capital ownership can lead to the exclusion of others from participating in the production of wealth.
- This concentration can be injurious to the economic rights of others and violates the common good.
- The concentration of capital ownership must be limited to prevent the monopolization of the means of production.
Legislative Deliberations
- Legislative deliberations are necessary to determine the point at which concentrated ownership of capital becomes destructive of the opportunities of others to participate effectively in production.
- Legislation is required to make the principle of limitation effective and prevent the concentration of capital ownership.
Liberty and License
- The principle of limitation does not infringe on individual liberty, but rather prevents individuals from invading the rights and liberties of others.
- The limitation on individual liberty is justified by the need to protect the rights of others and the common good.
Explore the relationship between property ownership and justice, including the just acquisition of property and its relation to production and wealth distribution.
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