Markets

The World Trade Organization (WTO) is a multilateral trade organization that, at least partially, governs trade relations between its member states. The WTO (2011a) proclaims that its “overriding objective is to help trade flow smoothly, freely, fairly and predictably.” The WTO is a “treaty-based” organization – it has been constituted through an agreed, legally binding treaty made up of more than 30 articles, along with additional commitments by some members in specific areas. At present, 153 states are members of the (...) WTO, which collectively make up over 97 percent of all trade worldwide (WTO 2011b). Together, the WTO treaty specifies the rights and obligations of its member states. To become a member of the WTO, a state must treat the agreement as a “single undertaking.” Members cannot choose à la carte which agreements – for example, regarding tariffs, or trade in services or intellectual property – they want to accede to and which they do not. Instead, they must take on the obligations of the agreement in toto. The WTO is one of the most consequential governance institutions in the world, a lodestar of political debate about globalization (see globalization), attracting increased interest from moral and political philosophers in recent years (James 2006; Moellendorf 2005; Risse 2007; Brock 2009). (shrink)

In this article I seek to say what it is for something to count as a neglected disease. I argue that neglect should be defined in terms of efforts at prevention, mitigation and cure, and not solely in terms of research dollars per disability-adjusted life-year. I further argue that the trend towards multifactorialism and risk factor thinking in modern epidemiology has lent credibility to the erroneous view that the primary problem with neglected diseases is a lack of research. A more (...) restrictive contrastive model of disease is endorsed as better suited to the definition of neglected disease. (shrink)

The dichotomy between the research to generate knowledge and the application of that knowledge to benefit mankind seems to be a recent development. In fact, more than 100 years ago Louis Pasteur avoided this debate altogether: one of his major, yet forgotten, contributions to science was the insight that research and its applications are not opposed, but orthogonal to each other (Stokes, 1997). If Niels Bohr ‘invented’ basic academic research—which was nevertheless the basis for many technological inventions and industrial applications—Pasteur (...) developed what we might call ‘motivated’ research. -/- How is research motivated and by what? By definition, scientists are citizens and members of the general public and, like the public, they are motivated by two forces: on the one hand, in Rudyard Kipling's words, “man's insatiable curiosity”; on the other hand, a desire for maintaining and improving their well‐being. These are not contradictory to one another; curiosity nourishes dreams of a brighter future and leads to discoveries that contribute to well‐being. (shrink)

We argue that charging people to participate in research is likely to undermine the fundamental ethical bases of clinical research, especially the principles of social value, scientific validity, and fair subject selection.

Karl Polanyi's double movement is a dialectical process characterized by a continuous tension between a movement towards social marketization and a movement towards social protectionism. Notably, Polanyi condemns the former movement while defending the latter. Without using the term " double movement " , F.A Hayek's theory of social evolution acknowledges the same phenomenon but reaches different normative conclusions. While for Polanyi the marketization of society is a utopia with dystopian consequences, Hayek's evolutionary explanation of this dialectical process asserts that (...) there is no alternative to a market oriented society. Both authors defend that their favoured movement is the one that truly supports the continuity of life. This article compares the authors' normative readings of the double movement and concludes that, from an evolutionary perspective, Polanyi's conclusion possesses a robustness that Hayek's postulate lacks. (shrink)

How accurate is Kevin Carson’s characterization of “freed” markets? Carson, a left-libertarian “free market anti-capitalist,” portrays free markets as so radically different from actually-existing markets that they are almost unrecognizable. In The Homebrew Industrial Revolution: A Low Overhead Manifesto, he provides an alternative history of industrialization that argues that large-scale industrial organization and production are largely creatures of state intervention and that truly free markets would be characterized mainly by small-scale production for local markets. This paper evaluates Carson’s narrative in (...) order to determine whether his vision of the freed market is credible. I find that Carson fails to provide sufficient evidence to demonstrate that, but for government intervention, national markets would only exist for a few goods. Furthermore, many of the features he believes freed markets would possess are based on fallacious views of competition, knowledge, capital, and entrepreneurship. (shrink)

There is growing concern that a global economic system fueled predominately by financial incentives may not maximize human flourishing and social welfare externalities. If so, this presents a challenge of how to get economic actors to adopt a more virtuous motivational mindset. Relying on historical, psychological, and philosophical research, we show how such a mindset can be instilled. First, we demonstrate that historically, financial self-interest has never in fact been the only guiding motive behind free markets, but that markets themselves (...) are representations of our individual and collective moral identities. Building on this understanding, we review the research on how economic incentives crowd out virtue-oriented concerns. We then introduce the concept of moral self-awareness (MSA), an evolving mindset informed by reflection on moral identity, namely what one’s actions say about oneself given the impacts (positive or negative) on others or society that one’s action may effect. MSA comprises three fundamental aspects of virtue-oriented reasoning: pride, shame, and guilt. Finally, we offer a four-stage model anchored in systems theory, yielding ever more refined motivating strategies for maximizing human flourishing and social welfare externalities. (shrink)

A review of Michael's Sandel's book, "What Money Can't Buy" (Allen Lane 2012).

A review of Morris & Vines, "Capital Failure" and Tom Malleson, "After Occupy".

The asylum system faces problems on two fronts. States undermine it with populist politics, and migrants use it to satisfy their migration preferences. To address these problems, asylum services should be commodified. States should be able to pay other states to provide determination and protection-elsewhere. In this article, I aim to identify a way of implementing this idea that is both feasible and desirable. First, I sketch a policy proposal for a commodification of asylum services. Then, I argue that this (...) policy proposal is not only compatible with the right to asylum, but also supported by moral considerations. Despite some undesirable moral features, a market in asylum facilitates the provision of asylum to those who need it. (shrink)

Capitalismo e riconoscimento" presenta, in cinque saggi per la prima volta raccolti insieme e tradotti in italiano, una densa e pregnante analisi di taluni cruciali processi socio-strutturali, morali e normativi delle società capitalistiche contemporanee dalla prospettiva delle dinamiche del reciproco riconoscimento e del disrispetto concernenti la sfera del lavoro. Particolare attenzione è dedicata ai paradossali rovesciamenti delle istanze di autorealizzazione, autonomia e responsabilità personale registratisi negli ultimi decenni nel quadro di un mercato del lavoro sempre più deregolato.

In this paper I examine Habermas’ conception of the market in The Theory of Communicative Action (TCA). Habermas’ characterization of the market as norm-free has been controversial and I discuss three objections to it: the claims that it (1) conflates of action types, types of action coordination and spheres of action, (2) cannot account for the normative structure of the social organization of labour, and (3) that it makes impossible to make moral judgments about behaviour in the market. I conclude (...) that while some of these objections are unfounded, we have reason to revise Habermas’ substantive claims about the market. I also stress the importance of distinguishing between the TCA’s methodology and its time-diagnostic thrust. Next, I assess the colonization thesis through a case study of the commodification of higher education. I conclude that this thesis remains plausible, but that it needs to be supplemented with a theory of ideology. (shrink)

To understand fully the contemporary imposition of capitalist class power, we need to consider not only social relations and neoliberal economic doctrines, but also academic and vernacular cultural contexts, including social critique, within which neoliberalism has been ideologically tailored and practically applied. Among the vernacular cultural contexts, religion – related to deepest human identifications, feelings and ideas about the nature of reality – certainly represents such an unavoidable political resource, inseparable from secular ideologies of a given social world. Taking this (...) into account, we will try to show how neoliberalism was built in a specific context, developing governmental approaches relative to elements of progressive critique, and has eventually succeeded to legitimize new mechanisms of capitalist accumulation, linking them, among other things, to specific religious “externalities”. We will suggest that the satisfactory explanation of profound changes in the contemporary religious life, referred to as the emergence of “New Age spirituality”, is only possible if we understand them as an integral part of the processes of neoliberalization. This does not mean that we are trying to reduce a complex multitude of contemporary spiritual practices to a simple one-dimensional reflex of neoliberalization, but rather to suggest that only such an approach can complement the omissions and correct the misconceptions of various inquiries that analyze New Age spirituality using the frameworks of postmodern culture and/or consumer society. By doing this, we wil discuss not only countercultural spirituality, but also neoliberal social epistemology and different critical aproaches to understanding it. (shrink)

Cadillac, sacs Louis Vuitton, montres Rolex, jacuzzis, caviar et champagne Dom Perignon : ces biens sont indéniablement luxueux. Au contraire, l’oxygène, le travail rémunéré ou l’eau ne sont pas considérés comme des luxes. L’histoire de l’économie regorge de biens qui ont perdu ou acquis un caractère luxueux (par exemple, le café, le thé ou le cacao). Qu’est-ce que le luxe ? La question de l’essence du luxe a été négligée par les philosophes qui se sont plutôt intéressés à la question (...) de la valeur morale du luxe. Nous débuterons par formuler la conception classique du luxe qui prévaut en économie : les objets luxueux sont des biens non nécessaires, c’est-à-dire superflus. La superfluité du luxe est analysée en termes d’accès aux biens: un bien est superflu lorsqu’il n’est accessible qu’à une minorité privilégiée. Cette définition camoufle deux conceptions distinctes du luxe : le luxe comme superfluité et le luxe comme privilège. Notre analyse révèlera que chacune de ces conceptions s’avère problématique. Nous explorerons ensuite une approche sémiotique du luxe en termes de symbole de la classe privilégiée. Nous conclurons en esquissant une nouvelle théorie : le luxe est l’extraordinaire dans l’ordinaire. (shrink)

"Capital is moved as much and as little by the degradation and final depopulation of the human race, as by the probable fall of the earth into the sun. Apres moi le deluge! is the watchword of every capitalist and of every capitalist nation" (Marx, CAPITAL Vol 1, 380-381).

Semiotic objections to market exchange of a good or service maintain that such exchanges signal an inappropriate attitude to the good or to associated individuals, and that this provides a weighty reason against having or participating in such markets. This style of argument has recently come under withering attack from Jason Brennan and Peter Jaworski (2015a, 2015b). They point out that the significance of any market exchange is explained by a contingent semiotic norm. Given the tremendous value that could be (...) realised by markets in, for instance, bone marrow, or kidneys, deferring to such norms across the board would have very significant opportunity costs. In the absence of any rationale for these norms, they should be ignored completely. We provide one important rationale. Unlike many semiotic objections to markets, we provide a broadly consequentialist semiotic argument. We argue that a range of behaviours play important signalling roles in interpersonal social practices; in particular, in practices involving caring, esteem, and testimony. Markets in these behaviours would distort these signals. Moreover, many of the productive advantages yielded by markets rely in turn on positive market norms that also inhibit the signalling behaviours associated with these nonmarket behaviours. We conclude that there will inevitably be trade-offs between the distributive advantages of new markets and these interpersonal social practices. (shrink)

We analyze the properties of optimum portfolios, the price of which is considered a new quantum variable and derive a quantum analog of the Black-Scholes formula for the price of financial variables in assumption that the market dynamics can by considered as its continuous weak measurement at no-arbitrage condition.

L’objectif de cet article est de montrer que le républicanisme d’entreprise développé par Hsieh ne protège pas les travailleurs contre l’ensemble des interférences arbitraires. Comme ils sont fondés uniquement sur la contestation des décisions, les arrangements institutionnels que Hsieh propose n’arrivent pas à saisir l’ensemble des formes que peut prendre la domination. Pour ce faire, nous utiliserons la critique développée par McCormick des institutions républicaines. Pour exploiter cette critique et l’appliquer au contexte d’entreprise, nous aurons besoin de présenter les arguments (...) en faveur du parallèle État-entreprise. Nous verrons ensuite que la critique de McCormick appliquée à l’entreprise nous permet de défendre l’idée selon laquelle il est nécessaire d’aller plus loin que le républicanisme d’entreprise pour réaliser la liberté républicaine. (shrink)

Some people may think that libertarianism and meritocracy have much in common; that the libertarian's ideal world looks like the meritocrat's ideal world; and that the public policies guiding us to each are one and the same. This is wrong in all respects. In this essay I explain why. -/- After providing an overview of meritocratic justice, I argue that meritocracy is a more compelling theory of distributive justice than libertarianism. Meritocracy better protects the core value of personal responsibility; incorporates (...) efficiency-enhancing regulation which libertarianism cannot; provides more positive liberty; and solves salient, real-world debates about distributive justice. (shrink)

The necessity for a government “lender of last resort” has been advanced as a justification for central banking. In this paper, I compare lending practices under central banking with those that would be likely to exist under a system of fractional-reserve free banking (FRFB). To do this I examine the underlying nature of banks as warehousing and credit-granting institutions and consider how redemption runs can arise as a consequence of fractional reserves in this system. Following the work of Thornton and (...) Bagehot, I describe principles of prudent lending that can be used to stem a redemption run when it arises. I examine the market incentives that apply under FRFB and how these incentives are perverted under a system of central banking. I find that a government central bank is not well-placed to lend according to prudent standards, and in fact is likely to use its power to pursue political goals that are at odds with prudent lending. I examine the US financial crisis and the actions of the Federal Reserve System to illustrate this view. (shrink)

What are economic exchanges? The received view has it that exchanges are mutual transfers of goods motivated by inverse valuations thereof. As a corollary, the standard approach treats exchanges of services as a subspecies of exchanges of goods. We raise two objections against this standard approach. First, it is incomplete, as it fails to take into account, among other things, the offers and acceptances that lie at the core of even the simplest cases of exchanges. Second, it ultimately fails to (...) generalize to exchanges of services, in which neither inverse preferences nor mutual transfers hold true. We propose an alternative definition of exchanges, which treats exchanges of goods as a special case of exchanges of services and which builds in offers and acceptances. According to this theory: (i) The valuations motivating exchanges are propositional and convergent rather than objectual and inverse; (ii) All exchanges of goods involve exchanges of services/actions, but not the reverse; (iii) Offers and acceptances, together with the contractual obligations and claims they bring about, lie at the heart of all cases of exchange. (shrink)

C. Howson’s probabilistic logic as a comprehensive methodological account of scientific inference, which avoids Hume’s inductive skepticism, is discussed against the background of the latter’s quantitative theory of money. Hume’s theory leads to two causal accounts that may appear to be contradictory. As the more general one suggests neutrality of money, while the more descriptive attributes causal influence to specie-flow mechanism of money. The former is grounded by a counterfactual reasoning. The discussion of recent examples of bayesian counterfactual models leads (...) to the conclusion that despite the possibility of a uniform account of Hume’s theory of money, it seems beyond the scope of the Bayesian probabilistic logic offered by Howson. (shrink)

Household debt has been widely discussed among social scientists, policy makers, and activists. Many have questioned the levels of debt households are required to take on, and have made various proposals for assisting households in debt. Yet theorists of distributive justice have left household debt underexamined. This article offers a normative examination of the distributive justice issues presented by proposals to relieve household debt or protect households from overindebtedness. I examine two goals at which debt relief proposals aim: remedying disadvantage (...) and stabilizing expectations. I then examine strategies for relieving existing debts such as debt abolition, forgiveness, bankruptcy, and mitigation, as well as strategies that aim to prevent future indebtedness, such as public provision or financing of costly goods and credit or interest rate regulations. (shrink)

According to an often repeated definition, economics is the science of individual choices and their consequences. The emphasis on choice is often used – implicitly or explicitly – to mark a contrast between markets and the state: While the price mechanism in well-functioning markets preserves freedom of choice and still efficiently coordinates individual actions, the state has to rely to some degree on coercion to coordinate individual actions. Since coercion should not be used arbitrarily, coordination by the state needs to (...) be legitimized by the consent of its citizens. The emphasis in economic theory on freedom of choice in the market sphere suggests that legitimization in the market sphere is “automatic” and that markets can thus avoid the typical legitimization problem of the state. In this paper, I shall question the alleged dichotomy between legitimization in the market and in the state. I shall argue that it is the result of a conflation of choice and consent in economics and show how an independent concept of consent makes the need for legitimization of market transactions visible. Footnotes1 For helpful comments and suggestions I am most grateful to Marc Fleurbaey, Alain Marciano, Herlinde Pauer-Studer, Thomas Pogge, Hans Bernhard Schmid, to seminar or conference participants in Aix-Marseille, Tutzing, Paris, and Amsterdam, and to two anonymous referees. (shrink)

Es difícil imaginar una sociedad del buen vivir sin arte. Por ello, la creatividad artística es reconocida como derecho en la Constitución del Ecuador, y como derecho humano en los intrumentos internacionales relevantes. Partiendo de esta reflexión, los artículos de este libro argumentan que siendo el arte un derecho, le corresponde al Estado la provisión de condiciones para su garantía por medio de políticas públicas, que deben tomar en cuenta tanto las especificidades de las personas, y los pueblos y nacionalidades, (...) como el contexto tecnológico de la era digital, que brinda las bases para una sociedad abierta donde el conocimiento sea libre. (shrink)

This paper analyzes the proposed use of combinatorial derivatives markets for event prediction, especially for catastrophic events such as terrorism, war, or political assasination. Following a presentation of the philosophical principles underlying these politico-economic tools, I examine case studies (U.S. DoD proposals) that evaluate their advantages and disadvantages in terms of both efficacy and moral considerations. I conclude that these markets are both fatally flawed due to internal conceptual contradictions and morally problematic.

Decentralising Bengaluru Urban -The Regional Planning way -/- Author / Authors : Priyadarshini Sen Page no.139 -148 Discipline : Applied Economics/ Management/ Commerce/Geography Script/language : Roman/English Category : Research paper Keywords: Regional Planning, Metropolis, Social wellbeing, Settlement.

Austrian economics starts out from the thesis that the objects of economic science differ from those of the natural sciences because of the centrality of the economic agent. This allows a certain a priori or essentialistic aspect to economic science of a sort which parallels the a priori dimension of psychology defended by Brentano and his student Edmund Husserl. We outline these parallels, and show how the theory of a priori dependence relations outlined in Husserl’s Logical Investigations can throw light (...) on the Austrian account of entrepreneurship. (shrink)

The paper aims to single out and clarify some causal connections between theconcomitant growth of depressive phenomena, not only in the strict clinicalsense, and the establishment of the new capitalist model, which has taken place in Western countries from the early seventies until today. As well as onthe mechanism of labour market flexibility, the essay dwells in particular onthe paradoxical dynamics of the ethical and moral ideals of the newideological configuration. Finally, the paper will also use the category of hegemony (...) to offer some theoretical instruments directed at reactivating theemancipatory potentials frustrated by social suffering of a depressive and regressive nature. Il saggio mira a individuare e delucidare alcuni nessi causali tra il concomitante incremento dei fenomeni depressivi, non solo in senso strettamente clinico, e l’affermazione del nuovo modello capitalistico avvenuto nei paesi occidentali dai primi anni settanta ad oggi. Oltre che sul meccanismo della flessibilità del mercato del lavoro, si insiste in particolare sulle dinamiche paradossali delle istanze etiche e morali della nuova configurazione ideologica. Ricorrendo anche alla categoria di egemonia, vengono da ultimo approntati degli strumenti teorici finalizzati a riattivare i potenziali emancipativi frustrati nella sofferenza sociale di natura depressiva e regressiva. (shrink)

This is a short, critical introduction to Cohen's book and argument: that socialism is justified on several grounds contrary to common opinion. I present Cohen's arguments together with some potential problems as well as responses to them.

The paper examines the value system of the English Third Way. It argues that, contrary to its critics, the Third Way is not an empty ideology but has content, though this content is not brand new. The Third Way, I claim, is more like a rhetorically defined area, which is delimited by existing values that however leave room for interpretation. The Third Way is a framework that is delineated by two clusters of value: opportunity-equality-justice and responsibility-community-authority. On the basis of (...) the detailed analysis of these values, I draw up possible ideologies of the Third Way. I then argue that what best fits present-day Hungarian social-democracy is an interpretation that is social-liberal in character. (shrink)

The republican tradition has long been ambivalent about markets and commercial society more generally: from the contrasting positions of Rousseau and Smith in the eighteenth century to recent neorepublican debates about capitalism, republicans have staked out diverse positions on fundamental issues of political economy. Rather than offering a systematic historical survey of these discussions, this chapter will instead focus on the leading neo-republican theory—that of Philip Pettit—and consider its implications for market society. As I will argue, Pettit’s theory is even (...) friendlier to markets than most have believed: far from condemning commercial society, his theory recognizes that competitive markets and their institutional preconditions are an alternative means to limit arbitrary power across the domestic, economic, and even political spheres. While most republican theorists have focused on political means to limit such power—including both constitutional means (e.g., separation of powers, judicial review, the rule of law, federalism) and participatory ones (democratic elections and oversight)—I will examine here an economic model of republicanism that can complement, substitute for, and at times displace the standard political model. Whether we look at spousal markets, labor markets, or residential markets within federal systems, state policies that heighten competition among their participants and resource exit from abusive relationships within them can advance freedom as non-domination as effectively or even more effectively than social-democratic approaches that have recently gained enthusiasts among republicans. These conclusions suggest that democracy, be it social or political, is just one means among others for restraining arbitrary power and is consequently less central to (certain versions of) republicanism than we may have expected. So long as they counteract domination, economic inroads into notionally democratic territory are no more worrisome than constitutional ones. (shrink)

Contemporary republicans have adopted a less-than-charitable attitude toward private beneficence, especially when it is directed to the poor, worrying that rich patrons may be in a position to exercise arbitrary power over their impoverished clients. These concerns have led them to support impartial public provision by way of state welfare programs, including an unconditional basic income (UBI). In contrast to this administrative model of public welfare, I will propose a competitive model in which the state regulates and subsidizes a decentralized (...) and nonstatist provision of support for the poor. This model will fix the historically objectionable features of private provision by having the state prevent collusion among private charities, deliver information to recipients about alternative sources of assistance, and give substantial grants to charities as well as tax incentives and vouchers to donors. I will contend that such an approach would do a better job of minimizing domination of the poor than traditional welfare states and may prove more politically feasible than a UBI, at least in the near term in certain national contexts. (shrink)

Contemporary republicanism is characterized by three main ideas: free persons, who are not subject to the arbitrary power of others; free states, which try to protect their citizens from such power without exercising it themselves; and vigilant citizenship, as a means to limit states to their protective role. This book advances an economic model of such republicanism that is ideologically centre-left. It demands an exit-oriented state interventionism, one that would require an activist government to enhance competition and resource exit from (...) dominating relationships within markets of all types, be they marital, labour, or residential. The substantial intervention and redistribution necessitated by such an approach make it leftist, while its tendency to work with rather than against the grain of markets makes it centrist. It is, in short, a contribution to progressive republican political thought, but one that is less social-democratic than market-democratic in character. (shrink)

Of increasing influence in the Australian Catholic Church is the kind of orthodoxy associated with American conservatism in which the defence of life and family against the depredations of cultural liberalism is tied to the defence of the free market and the promotion of economic liberalism. The clearest example of this thinking being the magazine First Things, a magazine with great influence both in American and in Australia. The argument of this paper is that there is an organic and determinative (...) link between economy and culture such that economic liberalism will inevitably give rise to, and promote, cultural liberalism. In short, that if the Church identifies herself with the promotion of economic liberalism she will find herself promoting that which she rightly opposes, namely what John Paul II referred to as the culture of death. (shrink)

Although Minsky’s interpretation of Keynes’s macroeconomics and essential message clashes with authoritative alternative interpretations, it has become increasingly influential during the years following the Global Financial Crisis, even in mainstream circles. This paper offers a critical evaluation of Minsky’s Financial Instability Hypothesis from the perspective of the alternative Austro-Wicksellian paradigm. Although some of the similarities and/or analogies between Minsky’s approach and that of the Austrian School suggest a more than merely superficial affinity between the two theoretical frameworks and although some (...) scope for cross-fertilization between both approaches can be found, both theoretically and empirically, at a fundamental conceptual level both theories remain incompatible and difficult if not impossible to reconcile, in particular in terms of fundamental causality and in terms of policy conclusions and prescriptions. Despite the fact that Minsky’s policy conclusions are multifaceted and somewhat eclectic, they manifest a lack of familiarity with the conclusions of the Austrian analysis of the problems of central planning by Big Players such as Big Bank and Big Government. Both approaches also offer contrasting interpretations of the historical experience of the Global Financial Crisis. (shrink)

Gary Becker´s 1956 paper about free banking was originally intended as a reaction to the 100-percent reserve proposals that were then popular at the University of Chicago. Today the original paper clearly illustrates how considerably our views and theories about free banking have evolved in the past 50 years. This development is to a considerable extent the result of the work and the writings of economists of the Austrian School. Pascal Salin is one of the most prominent members of the (...) Austrian Free Banking School. In a new introduction to the 1956 paper written especially for the Festschrift in honor of Pascal Salin, Gary Becker partly repudiates and mitigates some of his previous conclusions. This event offers a fitting opportunity to review some developments in the theory of free banking and related issues and to add a few clarifications concerning the present “state of the art” as regards an acceptable and adequate concept of free banking. (shrink)