Category: Democracy

Are financial markets – markets?

Philippine-stock-market-board

(source: wikimedia)

What a weird question, you may think. But consider:

  • In textbook markets, what is traded are products that are supposedly useful to customers. What is traded in many financial markets are highly artificial contractual arrangements that are several layers away from what happens in the real economy.
  • In textbook markets, participants are liable to go bankrupt if they overspend. In financial markets, some market participants know that they are too big to fail, creating problems of “moral hazard.”
  • In textbook markets, participants are expected to inform themselves about the products they trade. At least in some financial markets, what matters are not the “fundamentals” (e.g. the economic success of a company the shares of which are traded), but what other participants do. Many participants try to make profits by outrunning market movements or “sentiments”; this can lead to large swings, in disconnect from fundamentals (more…)

More thoughts on the £35,000 threshold – a response to Jesper Pedersen

The UK government has recently announced that it is raising the income threshold for non-EU citizens who wish to immigrate to the UK from £20,800 to £35,000. This threshold will apply not just to new immigrants, but also to those who have lived in the UK already for more than five years. It is the contention of this post that this new £35,000 threshold is not just unwise or poorly thought out, but also unjust.

Jesper Pedersen considers this issue with admirable even-handedness, but what if, rather than doing anything akin to sitting on this particular fence, we wanted to vault right over it, and claim – as I do here – that the policy is unjust? What support for making this statement could we muster? (more…)

Is the £35,000 rule unjust?

From the 1st April onwards any non-EU immigrant to the UK who does not otherwise have a connection with the country* must earn at least £35,000 by the end of their fifth year here, or otherwise face deportation. This policy is expected to make a small but largely insignificant contribution to lowering net migration numbers.

The commentariat’s verdict has been unequivocally harsh. This discriminatory law, it has been pointed out, will do next to nothing to keep out the kinds of people that draw the ire of the tabloids: unemployed “scroungers” and low-skilled immigrants who, it is claimed, depress the wages of – and take jobs away from ­– low-skilled British workers.

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Voters or residents: how should we draw our electoral map?

In recent months, the Right in both Britain and the US have been accused of trying to manipulate electoral rules to increase the influence of their supporters, and diminish the power of left-leaning voters. Both cases raise important questions about the objectives and principles underpinning electoral democracy, and specifically who elected representatives are supposed to represent.

At the heart of the dilemma is the question of how electoral districts should be drawn.

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What can republicanism offer the left?

the republican magazine

When you tell people that you work on republicanism, you are often met by a concerned look. You then have to rush to explain that by ‘republicanism’ you, of course, do not mean the party of Trump and Palin. Nor – you then have to add – do you only mean that you take a particular dislike to Elizabeth Windsor. This public understanding of republicanism looks set to only get worse, with the French centre-right UMP party, last year, successfully renaming itself Les Républicains.

The prospects for recovering republicanism for leftist politics might therefore not seem particularly promising. The label ‘republican’ might simply be too poisoned by its associations with right-wing parties or too easily reduced to narrow anti-monarchism, to be of much use to radicals and progressives. Yet, despite these concerns, I do think that republicanism has something to offer to the left.¹ I believe that its values of popular sovereignty, civic virtue and freedom, and the political proposals we can draw from them, make a recovery of republicanism attractive.

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How do people vote against their own interests?

I spend a disproportionate amount of my free time following the ins and outs of American politics. And one of the most interesting/baffling things about the nominations for the 2016 presidential election is the sheer capacity of the average Republican voter to stomach policy proposals that seem tailor-made to benefit the tiny minority of the wealthiest at the expense of everybody else. For example, all of the Republican front-runners have come out with some form of tax plan that cuts taxes on the wealthiest 1% by hundreds of thousands of dollars. Yet this doesn’t scare away nearly as many voters as you’d expect — in fact, the race is wide open, and some pundits even suggest the GOP are favourites at this stage. Voting against your own interests is, arguably, a global phenomenon – I’m sure many in the UK will say it happened in the elections in May – but it does seem to be particularly prevalent in the US, perhaps because one of the parties has moved so far to the right on social and economic issues that there is not yet any equivalent in Europe.

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Leaders and their responsibility for knowledge

This article in the Guardian, which some members of our team have shared on Facebook, suggests that the British prime minister David Cameron may have (had) no clue about what his policies did to local services. If we assume that this is true, it raises a moral question of great importance for today’s societies: how can leaders make sure that they know enough about the consequences of their decisions to make decisions at all? (more…)

Mass incarceration

One thing that I learned as a PhD student at Oxford was that philosophically interesting questions and questions about existing injustice do not always overlap – some existing practices are so obviously wrong from a normative perspective, I was told, that there is no point in writing normative theories about them. This seems right for certain cases, but I still haven’t quite made up my mind about whether it is always true.

I remember this Oxford seminar while reading this utterly depressing piece about incarceration and its effect on black communities in the U.S. in this month’s issue of the Atlantic. (more…)

Sacrificed for hope?

Sacrificed for hope?

Economic transition and intergenerational justice

« Poverty and oppression are here, and they will not

be alleviated by the possibility of a better future.”

Adam Przeworski

Suppose you believe that the nationalization of the means of production is necessary for the achievement of justice. Suppose, besides, that your political party enjoys enough popular support (an absolute majority) for this radical reform. Yet you know from experiences in other countries that such radical reforms engender an economic crisis, with higher unemployment and lower incomes. What you do not know is how the economy is going to fare in the future and how long the crisis can last.

These are a lot of assumptions, certainly, but please accept them for the sake of the argument. What I am asking you is to put yourselves into the shoes of western European socialist leaders from the first half of the 20th century. They faced both a strategic and an ethical dilemma. (more…)

Defending Quotas

 
 
We live in a society that contains severe gender injustice. One way in which to combat this injustice is via the use of quota policies. A quota policy is a policy that requires that members of certain specified groups to make up some stipulated minimum complement of an organisation or group of organisations. For example, we may require women to constitute at least 40% of non-executive board directorships. The use of quotas can be a highly effective tool for changing or maintaining the make-up of an organisation or group of organisations, especially when accompanied by harsh penalties for non-compliance with the quota policy.
Despite these credentials, the use of quota policies remains hotly contested and highly controversial. Indeed, the use of quota policies has been much more politically and constitutionally controversial than the use of other affirmative action policies, such as those that involve giving greater weight to applications from members of certain specified groups. I take it that part of the reason for this is that quota policies run the risk that worse candidates will be hired at the expense of better candidates. In other words, quota policies risk being genuinely discriminatory. The same risk does not arise with respect to policies that give greater weight to applications from members of certain specified groups. This is because the purpose of this greater weight can plausibly be seen simply as counterbalancing the effects of certain discriminatory norms, such as gendered social norms.
Even though quota policies risk being genuinely discriminatory, I believe that we should be prepared to defend their use. To this end, I shall make two points. First, as I have suggested, quotas can be highly effective, much more so than other affirmative action policies. As an illustrative example, let’s consider ‘reaction qualifications’ – that is, qualifications that a candidate possesses by virtue of others’ reactions to them. One stubborn way in which sexist discrimination occurs is when an employer rejects a female candidate’s application on the basis of how it is expected other people (other staff, customers, etc.) would interact with her. A quota policy provides a way in which effectively to challenge the effect of reaction qualification. Here, I agree with L. W. Sumner, who writes:
An employer who needs to hire women in order to meet a stipulated quota will be less likely to worry whether this particular woman is too pushy, or will not be a good team player, or is likely to get pregnant, or whatever. Although numerical quotas will come as an acute shock to many employers, I know of no other way to concentrate their minds as wonderfully on the genuine qualifications of female job candidates (214).
Second, the defence of the use of quota policies is strengthened if we can offer a reply to those who resist their use on the grounds that they run the risk that worse candidates will be hired at the expense of better candidates. This objection is typically put in terms of an appeal to rights and, in particular, the rights of the best qualified candidates. One fundamental problem with this objection is that it is insufficiently sensitive to costs that are imposed by the absence of a quota policy. At least in the short run, the alternative to the introduction of a quota policy is the survival of unjust discrimination, which leads to widespread rights violations. In short, if my first point in defence of the use of quota policies is correct, then we should conclude that there is no way to avoid imposing morally objectionable costs, at least in the short run. This is important as I think we should prefer imposing costs, as quota policies do, with the aim of minimising these costs in the long run, by moving towards a more just society.
To be sure, I do not claim that the use of quota policies is sufficient to end gender injustice. No doubt that, in addition to quota policies, we must pursue other goals to combat the causes and effects of gender injustice, such as challenging certain gender stereotypes and restructuring socio-economic institutions to protect greater and more equal opportunities. Nor do I claim that the use of quota policies is always necessary. In some cases, a quota policy may be futile and, if this is the case, it may risk being harmful. I support the more modest claim that we should in principle be prepared to use quota policies to combat gender injustice; that is, I believe that the quota policy is a legitimate weapon in our arsenal.