Libertarian Critique of Distributive Justice

I argue that taxation for redistributive purposes is a property rights violation, responding to arguments (due to Nagel, Murphy, Sunstein, and Holmes) claiming that individuals lack ownership of their pretax incomes.

Classical liberals have a long and convoluted history with the welfare state. Welfare policy has engaged liberals ever since the debates round poor relief, land ownership, and distributive justice in authors like John Locke, Thomas Paine, Herbert Spencer, and Henry George. However, the majority of the welfare state debate, from David Hume and Adam Smith to Milton Friedman and Richard Epstein, has been conducted primarily on the basis of rule-consequentialist reasoning, weighing the expected (long-term) costs and benefits of different institutional (...) rules. Classical liberals tend to be primarily concerned with welfare in the “happiness of individuals” sense and only secondarily with welfare in the “government handout” sense. This necessitates an investigation into the expected benefits and costs of various institutional rules and social policies. As a result, any disagreements about the best institutional pathway forward must be settled through comparative institutional analysis. Today, it seems to me that the classical liberal perspective must choose between two alternative pathways, each of which has its pros and cons, and each of which seems compatible with the abstract and general rules of the market society: 1) The Minimally Redistributive State based on a classical liberal constitution supported by robust market institutions and a civil society mosaic of polycentric mutual aid networks; or 2) The Welfare State of Law which, in addition to all of the above, adds a few carefully rule-bound and market-conforming redistributive mechanisms, the most important of which is the robust guarantee of something like a conditional minimum income scheme or an unconditional UBI/NIT scheme. In addition, the 3) “Third Way” models of the Social Market Economy and the Free Market Welfare State are also sometimes included as a third option. (shrink)

John Rawls was a major 20th-century political philosopher, and his work was animated by his loathing of the fact that many of the circumstances of human lives were due to fortune. Why should there be inequalities among men, he asked, that were produced by mere blind luck? To support his intuition, he came up with a version of social contract theory built around the device of the "original position." We imagine that people gather up for a discussion of what social (...) institutions are best, but they forget, in order not to be swayed by their own personal interests, who they are in the actual society. They do not know their religion, social position, wealth and income, their particular ends, or anything else that might prejudice their judgment. Under this veil of ignorance, they – or rather the philosopher who is shattered into numerous ghostly persons – seek to come to an agreement regarding the just basic structure of society. This book demolishes Rawls' every argument in support of his egalitarianism and shows that the original position, to the extent that it is not completely sterile, outputs libertarianism and laissez-faire capitalism. It defends the view of justice as either a virtue or a legal system that promotes harmony and progress in human affairs. (shrink)

Egalitarianism, Rothbard wrote, is a revolt against nature. Yet such was precisely the creed of the analytical Marxist and socialist Gerald Cohen. Cohen's basic morality was twisted by his communist upbringing but not _completely_ which makes uncovering his errors interesting. Which is what this book does. Cohen believes that justice consists in equality. Though he is brilliant and lucid, his attitude can be summed up as follows: "Humans are my toy soldiers. I happen to like all my soldiers equally, and (...) so will give all of them the same stuff and make sure they are equally well maintained. I will then play with these toy soldiers, and all shall be well." Negatively, his case is dismantled; positively, a view is advanced, building on the author's book on John Rawls, Distribute This, that justice is a social order that fosters harmony and progress among men, and that it is libertarian capitalism that realizes this virtue. By drawing attention to this key thinker, this book fills an important gap in the refutation of egalitarianism, a task that is still unfinished and that desperately needs doing today. (shrink)

Is a basic income ethically justifiable? This article offers several arguments in favor of a basic income from the perspective of Robert Nozick’s historical theory of justice. The first section outlines three basic principles of Nozick’s theory and explains its connections to libertarianism and natural rights theory. The second section argues for the adoption of the Lockean proviso as a limitation on the principle of original appropriation. It then presents three interpretations of the Lockean proviso: the Nozick’s proviso, the sufficiency (...) proviso, and the egalitarian proviso. All three provisos, albeit on different grounds, offer justification for a basic income. The third section turns to the principle of rectification of historical injustice. Together with Rawls’s difference principle and Steiner’s liberal theory of exploitation, the principle of rectification can also provide a justification for a basic income. The article concludes that, from an ethical perspective, a basic income is a promising form of redistribution. (shrink)

In Anarchy, State, and Utopia, Robert Nozick made the argument that income redistribution violates the Kantian categorical imperative. Nozick’s retrospective enslavement argument is still used today in discussions about the moral justification of taxation. This article explicates four implicit premises of Nozick’s argument: the self-ownership principle, its fullness, the absence of restrictions on the appropriation of natural resources, and the absence of restrictions on the distribution of the fruits of cooperation. Without additional justification for each of these premises, Nozick’s argument (...) cannot show that income redistribution violates the categorical imperative. (shrink)

Most right-libertarians deny the permissibility of government redistribution, referring to the inviolability of private property rights. In a rare exception, Eric Mack offers a right-libertarian argument for luck sufficientarianism based on the catastrophe clause. In this view, people who find themselves in trouble through no fault of their own may violate someone else’s property rights in minor ways to save their own lives. But since a literal interpretation of this clause makes property rights too uncertain, Mack proposes a system of (...) redistribution that will protect people from dire circumstances. As it only applies to those who find themselves in poverty through no fault of their own, Mack’s argument rules out a basic income. However, one can combine Mack’s argument with basic income by arguing that responsibility-insensitive sufficientarianism is superior to luck sufficientarianism. First, luck sufficientarianism allows for the counterintuitive conclusion that people who have made mistakes in their lives do not deserve help from the rest of the community, even if they are engaged in some socially important activity. Second, luck sufficientarianism unduly interferes with people’s private lives to distinguish between deserving and undeserving recipients of social assistance, and inevitably excludes some deserving recipients from the pool of recipients. Third, a condition for holding people responsible for their choices is that they have agency. But maintaining agency requires the presence of some kind of material resources that would protect people from the fear and stress associated with poverty. Thus, responsibility-insensitive sufficientarianism is superior to luck sufficientarianism as an interpretation of the catastrophe clause. And within a libertarian framework, this requires introducing a basic income. First, a basic income technically guarantees everyone protection from extreme poverty and destitution. Second, a basic income guarantees everyone autonomy in how they manage their resources. Third, a basic income does not require means testing and is therefore responsibility-insensitive. Mack’s catastrophe clause therefore offers a right-libertarian argument for a basic income. (shrink)

Many political and moral philosophers try to reconcile freedom and equality. One such theory is left-libertarianism, which establishes exclusive property rights over one’s own body and egalitarian property rights over natural resources. These rights are realized through the policy of unconditional basic income. Recently, left-libertarianism has come under fire from another similar approach, reciprocal libertarianism. This concept combines exclusive rights over one’s own body with the requirement for an egalitarian distribution of the fruits of social cooperation among those who make (...) a fair contribution to its system. On the face of it, reciprocal libertarians reject basic income because it doesn’t satisfy the fair contribution condition. This article explores the case for a basic income from a reciprocal libertarian perspective. In particular, two institutional regimes will be examined: reciprocal left-libertarianism and libertarian socialism. Each is compatible with a basic income coupled with broader redistribution according to the principle of reciprocity. (shrink)

In recent years, Fabian Wendt’s sufficientarian or moderate libertarianism has stood out among theories of distributive justice. This theory is based on the project pursuit argument and recognizes individual’s rights to self-ownership and ownership of external resources. But the second of these rights is limited by the sufficiency proviso, which requires that all people have a minimum sufficient share of resources to engage in personal projects. This article takes a critical look at moderate libertarianism, showing that its limitation to the (...) sufficiency threshold is incompatible with its reliance on the project pursuit argument, since this argument implicitly assumes a presumption of equal concern for persons. In the absence of additional reasons, this presumption requires that people as projects pursuers be given not a sufficient, but an equal share of external resources. (shrink)

How can libertarianism—which is thought to be hostile to any redistribution—support universal, unconditional cash transfers in the form of a Basic Income? Surprisingly, many vocal proponents of programmes similar to Basic Income—such as economist Milton Friedman, public intellectual Charles Murray, and eBay co-founder Pierre Omidiyar—are self-described libertarians. As this chapter demonstrates, these and other libertarian proponents are not deviating from libertarian thought: instead, they reflect the nuance and diversity of its theoretical foundations. To that end, this chapter explores several justifications (...) for a Basic Income grounded in libertarianism. By libertarianism, we mean a family of theories that emphasize the right of the individual to be free from coercion, a strong respect for private property rights and the free market, and a presumption that market distributions are just and should be disturbed only in limited circumstances. We argue that each variant of libertarianism justifies, but does not mandate, redistribution, although for differing reasons and at different levels. Because this conclusion runs counter to most readers’ impressions of libertarianism, this chapter focuses on making the libertarian case for redistribution. We further show that once one accepts the case for redistribution, providing such redistribution through unrestricted, unconditional cash transfers best reflects core libertarian principles. (shrink)

Distributive justice is one of the central questions of contemporary moral and political philosophy. Discussions on this topic are often presented as a confrontation between two groups of thinkers: libertarians and luck egalitarians. The former emphasize the dependence of the existing distribution on the individual choice and personal responsibility of people, and therefore are skeptical about various redistribution programs. The latter, on the contrary, emphasize the influence of morally arbitrary luck on the economic situation of people, and therefore welcome redistributive (...) measures to compensate for this brute luck. Left-libertarian claims to reconcile these two types of moral considerations. The classical left-libertarian point of view seeks to offset the influence of brute luck through an egalitarian distribution of the benefits of owning natural resources that are independent of anyone’s choice and responsibility. However, this position does not sufficiently take into account the influence of other factors of brute luck and, in particular, genetic endowments on the distribution of economic wealth. This article discusses three approaches that allow left-libertarians to take into account the factor of genetic luck in interpersonal distribution. First, it is Hillel Steiner’s proposal to attribute genetic information to natural resources, the benefits of which are subject to egalitarian redistribution. Second, it is the concept of equal opportunity for welfare by Peter Vallentyne, Michael Otsuka and Eric Roark. Third, it is the universal dominance criterion of Philippe Van Parijs and Kasper Ossenblok. The first two approaches face a number of moral and practical difficulties, but the third approach is able to overcome them. Thus, the universal dominance criterion is the most promising way to reconcile left-libertarianism and justice in the distribution of genetic endowments. (shrink)

The COVID-19 pandemic has been overwhelming public health-care systems around the world. With demand exceeding the availability of medical resources in several regions, hospitals have been forced to invoke triage. To ensure that this difficult task proceeds in a fair and organised manner, governments scrambled experts to draft triage guidelines under enormous time pressure. Although there are similarities between the documents, they vary considerably in how much weight their respective authors place on the different criteria that they propose. Since most (...) of the recommendations do not come with ethical justifications, analysing them requires that one traces back these criteria to their underlying theories of distributive justice. In the literature, COVID-19 triage has been portrayed as a value conflict solely between utilitarian and egalitarian elements. While these two accounts are indeed the main antipodes, I shall show that in fact all four classic theories of distributive justice are involved: utilitarianism, egalitarianism, libertarianism, and communitarianism. Detecting these in the documents and classifying the suggested criteria accordingly enables one to understand the balancing between the different approaches to distributive justice—which is crucial for both managing the current pandemic and in preparation for the next global health crisis. (shrink)

Libertarianism is a theory of justice that places significant moral weight on exclusive property rights. On this basis, many libertarian philosophers, from Robert Nozick to Michael Huemer, criticize any form of income redistribution. Ironically, some libertarians, following Philippe Van Parijs, Matt Zwolinski, and Charles Murray, have supported the introduction of an unconditional basic income. This essay seeks to prove that this support is not just a political compromise. By contrast, libertarian justice advocates have a strong moral basis for supporting income (...) redistribution in the form of unconditional cash payments. This essay explores one such reason, the Lockean proviso. The Lockean proviso is a moral requirement for the appropriation of unowned resources to leave “enough and as good” for others. There are many interpretations of the Lockean proviso, but the most ambitious are the egalitarian proviso and the sufficiency proviso. Each of them, but for different reasons, requires the introduction of a basic income. The egalitarian proviso establishes the equal rights of all people to natural resources, and therefore requires that all benefits from the ownership of natural resources be shared egalitarianly — in the form of unconditional equal payments. The sufficiency proviso establishes some threshold of sufficiency, and then imposes a restriction on exclusive property rights so that they can’t prevent redistribution in order to raise all people to the threshold of sufficiency. However, while both provisos require a basic income, they diverge on three important dimensions in assessing this basic income: applicability, taxable base, and amount of cash payments. (shrink)

We live in a market system and witness much economic inequality. Although such inequality may not be an essential characteristic of market systems, it seems historically inevitable. How we should evaluate this inequality, on the other hand, is contentious. I propose that bleeding heart libertarians provide the best diagnosis and prescription.

We live in a market system with much economic inequality. This may not be an essential characteristic of market systems but seems historically inevitable. How we should evaluate it, on the other hand, is contentious. I propose that bleeding heart libertarianism provides the best diagnosis and prescription.

When philosophers, social scientists, and politicians seek to determine the justice of institutional arrangements, their discussions have often taken the form of questioning whether and under what circumstances the redistribution of wealth or other valuable goods is justified. This essay examines the different ways in which redistribution can be understood, the diverse political contexts in which it has been employed, and whether or not it is a useful concept for exploring questions of distributive justice.

Abstract: This paper restates the thesis of 'The Requirements of Justice and Liberal Socialism" where it was argued that liberal socialism best meets Rawlsian requirements of justice. The recent responses to this paper by Jan Narveson, Jeppe von Platz, and Alan Thomas merit examination and comment. This paper shows that if Rawlsian justice is to be met, then non-personal property must be subject to public control. If just outcomes merit the public control of non-personal property and this control is not (...) utilized, then justice has been subordinated to the objectively less important institution of private property. (shrink)

Gordon Barnes accuses Robert Nozick and Eric Mack of neglecting, in two ways, the practical, empirical questions relevant to justice in the real world.1 He thinks these omissions show that the argument behind the Wilt Chamberlain example—which Nozick famously made in his seminal Anarchy, State, and Utopia—fails. As a result, he suggests that libertarians should concede that this argument fails. In this article, we show that Barnes’s key arguments hinge on misunderstandings of, or failures to notice, key aspects of the (...) entitlement theory that undergirds Nozick’s and Mack’s work. Once the theory is properly understood, Barnes’s challenges fail to undermine the Chamberlain example, in particular, and the entitlement theory, in general. (shrink)

After Marx, dissenting economics almost always used 'the labour theory' as a theory of value. This paper develops a modern treatment of the alternative labour theory of property that is essentially the property theoretic application of the juridical principle of responsibility: impute legal responsibility in accordance with who was in fact responsible. To understand descriptively how assets and liabilities are appropriated in normal production, a 'fundamental myth' needs to be cleared away, and then the market mechanism of appropriation can be (...) understood. On the normative side, neoclassical theory represents marginal productivity theory as showing that (a metaphorical version of) the imputation principle is satisfied ('people get what they produce') in competitive enterprises. Since that shows the moral commitment of neoclassical economics to the imputation principle, the labour theory of property is presented here as the actual non-metaphorical application of the imputation principle to property appropriation. The property-theoretic analysis at the firm level shows how the neoclassical (and much heterodox) analysis in terms of 'distributive shares' wholly misframed the basic questions. Finally, the paper shows how the imputation principle (modernised labour theory of property) is systematically violated in the present wage labour system of renting persons. The paper can be seen as taking up the recent challenge posed by Donald Katzner for a dialogue between neoclassical and heterodox microeconomics. (shrink)

Robert Nozick initiated one of the most inspired and inspiring discussions in political philosophy with his 1974 response in Anarchy, State, and Utopia to John Rawls’s 1971 account of distributive justice in A Theory of Justice. These two works have informed an enormous amount of subsequent, especially liberal, discussions of economic justice, where Nozick’s work typically functions as a resource for those defending more right-wing (libertarian) positions, whereas Rawls’s has been used to defend various left-wing stances. Common to these discussions, (...) as found in politics generally (where similar kinds of arguments frequently are used to defend right and the left-wing policies and conclusions) is that they end in rather stubborn stalemates: the right defending minimal states while the left defends more extensive states. Interesting, too, is that both Nozick and Rawls take themselves to be consistent with, inspired by, and furthering Kant’s freedom project in the development of their own theories of justice. In this paper, I start by outlining the structures of these debates with an emphasis on the original disagreements between Nozick and Rawls. I then show how neither theory actually employed Kant’s own theory of justice, but rather drew on or out (presumed) implications of his ethical theory. In the final sections, I argue that if Nozick and Rawls had instead used Kant’s theory of justice and not his ethics, not only would their individual theories have been stronger, but they could have found ways of overcoming the unproductive stalemates that characterize their own as well as subsequent related discussions of economic justice as we currently find them in much scholarly and contemporary political debate. (shrink)

Gini coefficients, which measure gross inequalities rather than their unfair components, are often used as proxy measures of absolute or relative distributive injustice in Western societies. This presupposes that the fair inequalities in these societies are small and stable enough to be ignored. This article presents a model for a series of ideal, perfectly just societies, where comfortable lives are equally available to everyone, and calculates the Gini coefficients for each. According to this model, inequalities produced by age and other (...) demographic factors, together with reasonable choices under equal opportunity, can raise the Gini coefficients for perfectly just societies to levels at least as high as those of any current Western country, and can as easily account for differences in Gini coefficients between such societies or within one such society over time. If Gini coefficients at these levels are possible for ideal societies without distributive injustice, then they should not be used as proxy measures of distributive injustice in real societies. (shrink)

The classical liberal paradigm has always argued for strong economic freedom combined with limits on government power. But it has also been always openminded about using government programs to improve the society. These principles, if applied to today’s society, are simultaneously a criticism of “really existing” welfare state ideology – with its lack of economic freedom and its reliance on the expansive bureaucracy – but also an opportunity for reforming welfare states toward more freedom-based alternatives. There is a utopian potential (...) in classical liberalism. This book articulates how several strands of liberalism, including Austrian school liberalism and Chicago school liberalism, may support something like universal basic income (UBI). (shrink)

This paper shows that implicit assumptions about the numeraire good in the Kaldor-Hicks efficiency-equity analysis involve a "same-yardstick" fallacy (a fallacy pointed out by Paul Samuelson in another context). These results have negative implications for cost-benefit analysis, the wealth-maximization approach to law and economics, and other parts of applied welfare economics--as well as for the whole vision of economics based on the "production and distribution of social wealth.".

In this essay I discuss a powerful challenge to high-liberalism: the challenge presented by neoclassical liberals that the high-liberal assumptions and values imply that the full range of economic liberties are basic rights. If the claim is true, then the high-liberal road from ideals of democracy and democratic citizenship to left-liberal institutions is blocked. Indeed, in that case the high-liberal is committed to an institutional scheme more along the lines of laissez-faire capitalism than property-owning democracy. To present and discuss this (...) challenge, I let John Rawls represent the high-liberal argument that only a narrow range of economic liberties are basic rights and John Tomasi represent the neoclassical liberal argument that the full range of economic liberties are basic rights. I show that Rawls’s argument is inadequate, but also that Tomasi’s argument fails. I thus conclude that high-liberalism is in a precarious situation, but is not yet undone by the neoclassical liberal challenge. (shrink)

Are positive duties to help others in need mere informal duties of virtue or can they also be enforceable duties of justice? In this paper I defend the claim that some positive duties (which I call basic positive duties) can be duties of justice against one of the most important prin- cipled objections to it. This is the libertarian challenge, according to which only negative duties to avoid harming others can be duties of justice, whereas positive duties (basic or nonbasic) (...) must be seen, at best, as informal moral requirements or recommendations. I focus on the contractarian version of the libertarian challenge as recently presented by Jan Narveson. I claim that Narveson’s contractarian construal of libertarianism is not only intuitively weak, but is also subject to decisive internal problems. I argue, in particular, that it does not pro- vide a clear rationale for distinguishing between informal duties of virtue and enforceable duties of justice, that it can neither successfully justify libertarianism’s protection of negative rights nor its denial of positive ones, and that it fails to undermine the claim that basic positive duties are duties of global justice. -/- . (shrink)

In the longstanding debate between liberals and libertarians over the morality of redistributive labor taxation, liberals such as John Rawls and Ronald Dworkin have consistently taken the position that such taxation is perfectly compatible with individual liberty, whereas libertarians such as Robert Nozick and Murray Rothbard have adopted the (very) contrary position that such taxation is tantamount to slavery. In this paper, I argue that the debate over redistributive labor taxation can be usefully reconstituted as a debate over the incidents (...) (or components) of self-ownership, with liberals arguing for a narrow definition of the concept and libertarians arguing for a broad one. By using what Alan Ryan has called the “language of proprietorship,” I pinpoint precisely the source of the disagreement between liberals and libertarians and assess the relative strengths of their arguments. I also show that the respective definitions of self-ownership used by liberals and libertarians are deeply problematic—though for strikingly different reasons. (shrink)

How can we allocate scarce health care resources justly? In particular, are markets the most efficient way to deliver health services? Much blood, sweat and ink has been shed over this issue, but rarely has either faction challenged the unspoken assumption behind the claim made by advocates of markets: that efficiency advances the interests of both individuals and society. Whether markets actually do increase efficiency is arguably a matter for economists, but the deeper ethical question is whether efficiency is the (...) correct criterion, in terms of social justice and individual needs. (shrink)

State of nature theories have a long history and play a lively role in contemporary work. Theories of this kind share certain nontrivial commitments. Among these are commitments to inclusion of a Lockean proviso among the principles of justice and to an assumption of invariance of political principles across changes of circumstances. In this article I want to look at those two commitments and bring to light what I believe are some important difficulties they engender. For nonpattern state of nature (...) theories, the justness of a society is marked by the conformance of the society to procedural principles. Distributions of resources and the like have no particular import for questions of justice. Whatever may later result, so long as it came about in accordance with the rules determined by the principles of justice, is itself just. The Lockean proviso is one of the principles of justice governing property and other rights of nonpattern theories of justice. The proviso hangs as a "shadow" over the results of the operation of the other (usual) principles of justice. It is intended to remedy a complaint which arises when the positions of those no longer at liberty to use some resource are worsened (1) by no longer being able to use freely what they previously were free to use and (2) in such a way that they fall below a "baseline." Following Locke, a traditional formulation of the proviso is to allow acquisition just so long as there is "enough and as good" left over for others. Section I concerns the relation of the Lockean proviso to pattern and nonpattern principles of justice, demonstrating that a Lockean proviso turns a nonpattern into a pattern theory of justice. Section II is about the relation of the Lockean proviso to the ideas revealed by an examination of a state of nature, suggesting reasons to reject ideal theories of justice. (shrink)