06 Fairness and Distributive Justice

Figures and tables

2

Interpretations of moral equality

Moral equality of persons

1. Equal respect for rights Libertarianism

2. Equality of opportunity Merit and desert

3. Equal consideration of interests Utilitarianism

4. Equality of welfare

5. Equality of resources

6. Difference principle John Rawls

7. Initial equality of resources Ronald Dworkin

8. Equality of capabilities Amartya Sen

Simple model of pin factory

Jack Jill

Heads Points Heads Points

Productivity per hour 9 1 1 9

Solitary pin production in a 10-hour day 9 9

Total solitary pin production in a 10-hour day 18

Specialized part production in a 10-hour day 90 0 0 90

Total cooperative pin production in a 10-hour day 90

4

Diminishing marginal utility

Candies 0 1 2 3 4

Total Utility (TU) 0 3 5 6 6

Marginal Utility (MU) +3 +2 +1 +0

5

Diminishing marginal utility graph

0

1

2

3

4

5

6

7

0 1 2 3 4

Total utility vs. Number of candies

Total utility

6

Utilitarianism and equality of resources

Ann’s # Bob’s # Ann’s TU Bob’s TU Aggregate utility 4 0 6 0 6 + 0 = 6 3 1 6 3 6 + 3 = 9 2 2 5 5 5 + 5 =10 1 3 3 6 3 + 6 = 9 0 4 0 6 0 + 6 = 6

Suppose there are only 4 candies to distribute between Ann and Bob. Total Utility (TU) is maximized by an equal distribution.

7

The problem of unfair preferences

Ann’s # Bob’s # Ann’s TU Bob’s TU Aggregate utility 4 0 6 0 - (2 x 6) = -12 6 - 12 = -6 3 1 6 3 - (2 x 6) = -9 6 - 9 = -6 2 2 5 5 - (2 x 5) = -5 5 - 5 = 0 1 3 3 6 - (2 x 3) = 0 3 + 0 = 3 0 4 0 6 - (2 x 0) = 6 0 + 6 = 6

Bob is jealous of Ann. Bob’s utility is reduced by 2 utiles for every 1 utile of enjoyment that Ann receives from her candy. Utility is now maximized by an unequal distribution.

8

Marginal contribution in a firm

1st employee hired gets $900 - $400 = $500, 2nd gets $800 - $400 = $400, etc. Pay for same work depends on order of hiring. Arbitrary from a moral point of view. Unequal pay for equal work. Unacceptable to employees.

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

1 2 3 4 5 6 7

Mar

gina

l con

trib

ution

# of employees

Employee marginal weekly contribution

MR

MC

Leveling down Ron Sal Tom

Equality of welfare (utiles) 60 60 60 Inequality of welfare (utiles) 65 70 75

Equality of Welfare says that the top distribution is somehow better than the bottom distribution. This seems wrong since it makes everyone worse off.

10

Conceptual map

Ethical Theories

Identity-based

Principle-based

Divine command

Duties

Rights

Justice

Retributive

Compensatory

Distributive

Equal respect for rights Libertarianism

Equality of Opportunity Desert

Equal consideration of

interests

Utilitarian justice

Equality of welfare

Equality of resources

Strict equality

Difference Principle

Initial equality

Consequence-based

11

Which of the following distributions best fits the description of: 1. Strict equality of resources2. Economic utilitarianism 3. The difference principle

Ron Sal Tom Aggregate A. $1000 $1000 $3000 $5000

B. $1000 $1000 $1000 $3000

C. $1200 $1300 $1500 $4000