A collage of images, featuring most prominently a person holding a sign reading "no justice no peace"

Category: Economics

Academia / Distribution / Economics / General / Work

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Attribution fallacy, incentives, and income inequality

It is difficult to read anything on the justification of high salaries these days without running into catch phrases such as “the hunt for talent”, “attracting the best people to this job”, or “retaining human capital.” The core idea underlying this kind of discourse is one that has got a lot of traction in political philosophy in recent decades, too: It is justified to pay certain individuals – be they neurosurgeons, lawyers, or CEOs – financial incentives, because the productive contribution they will make in response benefits us all.

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Climate / Duties / Economics / General / Governance / Public Philosophy

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Fiduciary duties of pension fund managers in the anthropocene

The latest report by the International Panel on Climate Change (IPCC) estimates that hundreds of billions of dollars will be required for climate mitigation and adaptation investments per year to avoid catastrophic global warming. Yet, some of our financial practices are not only slow to adapt to this requirement, but actually represent an obstacle in achieving the goal.

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Climate / Democracy / Distribution / Economics / Governance / Health / Rights

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From the Vault: Journal of Applied Philosophy Collaboration

While Justice Everywhere takes a short break over the summer, we recall some of the highlights from our 2021-22 season. This post focuses on our ongoing collaboration with the Journal of Applied Philosophy.

 

In 2019, Justice Everywhere began a collaboration with the Journal of Applied Philosophy. The journal is a unique forum that publishes philosophical analysis of problems of practical concern, and several of its authors post accessible summaries of their work on Justice Everywhere. These posts draw on diverse theoretical viewpoints and bring them to bear on a broad spectrum of issues, ranging from the environment and natural resources to freedom, empathy, and medical ethics.

For a full list of these posts, visit the JOAP page on Justice Everywhere. For a flavour of the range, you might read:

Stay tuned for even more from JOAP authors in our 2022-23 season!

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Justice Everywhere will return in full swing on 1st September with fresh weekly posts by our cooperative of regular authors (published on Mondays), in addition to our Journal of Applied Philosophy series (published on Thursdays). If you have a suggestion for a topic or would like to contribute a guest post on a topical subject in political philosophy (broadly construed), please feel free to get in touch with us at justice.everywhere.blog@gmail.com.

Distribution / Economics / Liberty / Work

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Why Property-Owning Democracy is Unfree

In this post, Paul Raekstad (University of Amsterdam) discusses their recent article in Journal of Applied philosophy on whether Property-Owning Democracy can resolve the unfreedom of capitalism.

Socialists rightly argue that capitalism cannot be free. This is because it’s built on the personal domination of workers by bosses, the structural domination of workers in labour markets, and the impersonal domination of everyone by market forces. The solution to domination is democratisation. But do we really need to replace capitalism with socialism to secure emancipation? Advocates of Property-Owning Democracy argue that we don’t. In a recent article I argue that they are wrong.

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Democracy / Economics / Gender / Health / Rights / Work

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Why We Can’t Have It All When It Comes to the Future of Work

This is a guest post by Deryn Thomas, PhD Student in Philosophy, Benjamin Sachs, Senior Lecturer, and Alexander Douglas, Senior Lecturer, at University of St. Andrews. It discusses their recent research on a future with fair work for all and some of the trade-offs it involves. 

Two years into a world turned upside down by lockdowns, travel restrictions, and viral mutations, the way people work and make a living has changed dramatically. New challenges are being presented by rising childcare costs, increases in automation, the digitisation of the workplace, and the gig economy. So we need to ask: how do we make the future of work better for everyone?

At the Future of Work and Income Research Network, we’ve been thinking hard about this problem. As part of these efforts, we recently participated in a consultation for the Scottish Government on its Fair Work Goals, set to be implemented by 2025. The consultation document and stated goals offer an optimistic vision for the future of work in Scotland. But it risks being too idealistic: many of the stated goals conflict with each other.

We noticed at least four sets of incompatible goals. As it stands, the documents say nothing about how these compromises will be decided. But we think this leaves out an important step in the process. Therefore, we offer some reflections from philosophy about how to weigh up the values at stake.  In the end, we think that decisions like these need to be made in the context of a national conversation about the trade-offs surrounding work.

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Distribution / Economics / General / Governance / International

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Is the OECD/G20 international corporate tax reform fair?

On October 8th, the Organisation for Economic Co-operation and Development (OECD) announced that 136 countries have adopted its two-pillar proposal to reform the taxation of multinational enterprises (MNEs).

Pillar One applies to MNEs with sales in excess of $20bn and profits over 10%. It shifts the taxing rights of the next 25% of profits above the 10% threshold to market jurisdictions, that is, to the country where the goods and services of the MNE in question are sold. The measure is thought to apply only to about 100 MNEs, many of them in the highly profitable digital services sector. Pillar Two introduces a minimum tax of 15% for all MNEs with revenues of more than $750m. (more…)

Economics / Technology

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Why we can’t quit Facebook – and what to do about it

This is a guest post by Nikhil Venkatesh, a PhD candidate in Philosophy at University College London, and a fellow of the Forethought Foundation for Global Priorities Research. It draws on his paper ‘Surveillance Capitalism: a Marx-inspired account’.

On Monday 4th October, mistakes in a routine maintenance task led to Facebook’s servers disconnecting from the Internet. For six hours people across the world were unable to use Facebook and other platforms the company owns such as Instagram and WhatsApp.

The outage had serious consequences. Billions of people use these platforms, not just to gossip and share memes but to do their jobs and to reach their families. Orders and sales were missed, and so were births and deaths. At the same time, many found those six hours liberating: a chance to get things done undistracted. But what if the outage had gone on for weeks, months, or forever? Would you have been able to cope?

The previous day, former Facebook employee Frances Haugen revealed herself as the source for a Wall Street Journal series examining how the company’s products ‘harm children, stoke division and weaken our democracy’. This is the latest in a continuous stream of Facebook-related scandals: Cambridge Analytica and Brexit, Russian interference and Trump, genocide in Myanmar, the ongoing presence of scams and hate speech, and the spread of conspiracy theories about the pandemic and the vaccine which led the President of the United States, no less, to accuse Facebook of ‘killing people’. Each time a scandal appears, many of us consider quitting Facebook’s platforms. How could you participate in a social network that does these awful things? (more…)

Climate / Economics / General / Governance

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Accounting for global and local justice in behavioural climate policy

Anthropogenic climate change is a global concern. However, that climate change concerns all of us does not mean that it would concern all of us equally. Income is the primary correlate of carbon footprint whether analysed on a national or individual level. The richest half of the world’s countries (in GDP) emit 86% of global CO2 emissions. The difference is even starker when analysed on an individual level: income level is also the strongest correlate with citizen CO2 footprint (2016 data from the Global Carbon Project). The effect of attempts to decrease carbon footprint in wealthy countries by producing climate-friendly consumer goods, energy, and transport options have had limited effect – in part because these only transform a small part of citizens’ total consumption behaviour, and in part because reductions are needed, primarily, in the amount of consumption by high-income citizens rather than in the specific goods being consumed. (more…)

Democracy / Distribution / Economics / General

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More equal compared to what? How central banks are fudging the issue on inequality

Since the financial crisis of 2007, central banks have become the central tool of macroeconomic management, being described as the “only game in town.” To avert financial meltdown and, subsequently, to stimulate the economy, they have launched unconventional monetary policies such as quantitative easing (QE). The latter injects huge amounts of liquidity into the economy through large-scale purchases of financial assets by central banks. Central banks have doubled down on QE in reaction to the Covid-crisis.

QE has unintended side-effects. By pushing up the prices of the financial assets purchased, it favours already well-to-do asset holders. Given these consequences, central banks found themselves in the spotlight and pressured to justify their policies.

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Democracy / Distribution / Economics / Rights

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Can Someone Be Too Rich?

In this post, Dick Timmer discusses their recent article in Journal of Applied Philosophy on why we should limit people’s wealth.

How we think about wealth has a profound impact on the world in which we live. Some years ago, philosopher Ingrid Robeyns proposed a new perspective on wealth, which she dubbed limitarianism. Robeyns argues that once people can live a fully flourishing life, additional wealth lacks moral value for the holder because it does not contribute their flourishing. And because such wealth threatens political equality, leaves many people’s urgent needs unmet, and could be used to address the current climate crisis, such wealth should be redistributed.

In my paper, I defend a version of this view. I argue that there are good political and ethical reasons to prevent people from having more than a certain amount of wealth. Above some point, wealth has little if any value for the holder, yet it could have huge value if redistributed.

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