While John Tomasi's Free Market Fairness is ambitious, provocative, and does much to reinvigorate debate about economic justice, his argument for market democracy is not compelling. I discuss two objections. First, I offer doubts about whether “thick” economic freedom is a condition of democratic legitimacy. While Tomasi raises the intriguing possibility that liberal commitments may justify a somewhat more expansive list of economic rights than traditionally recognized, he fails to give a well-worked-out account of these rights. Instead, he argues for (...) unfettered economic liberty without adequately connecting it to citizens' self-authorship, or showing how it could feasibly be protected alongside other basic liberties. Second, I argue that a concern for citizens' agency and economic self-authorship should lead us to endorse a social-democratic regime, not a market-democratic one. Market democracy leaves out or heavily revises key aspects of justice as fairness as developed by Rawls, including fair equality of opportunity and the fair value of the political liberties. Moreover, while Tomasi claims that social democracy rests on a perfectionist prioritizing of citizens' status over their agency, I argue that social democracy is best defended on agency-based grounds. (shrink)

A citizens’ movement in Berlin advocates for the expropriation of housing corporations and has won a significant majority in a popular referendum in September 2021. Building on this proposal, this paper develops a general account of expropriation as a measure for corporate reform and thereby contributes to the ongoing debate on the democratic accountability of business corporations. It argues that expropriation is a valuable tool for intervention in a dire situation in some economic sector to enable a re-structuring of the (...) governance of the assets in question. Compared with other tools available, expropriation is a more forward-looking, genuinely political measure that does not depend on the legal assignment of guilt but rather proceeds in a pragmatic and problem-oriented manner. It also allows us to reconsider in how far the market mechanism should be employed in the administration of assets. Objections from private property rights against expropriation fail as corporations generally are privileged, quasi-public institutions that can justifiably be subject to democratic interventions. Expropriation is thus an important addition to the arsenal of corporate reform proposals, especially for those concerned with a broad democratization of the corporation. (shrink)

This paper supports the personal data platform cooperative as a means of bringing about John Rawls’s favoured institutional realisation of a just society, the property-owning democracy. It describes personal data platform cooperatives and applies Rawls’s political philosophy to analyse the institutional forms of a just society in relation to the economic power deriving from aggregating personal data. It argues that a society involving a significant number of personal data platform cooperatives will be more suitable to realising Rawls’s principle of fair (...) equality of opportunity. (shrink)

The term ‘predistribution’ draws attention to the need for policies and institutions that are designed to improve the position of the least advantaged members of society by generating a fairer distribution of opportunities and benefits from the operation of the free market system, with less reliance on redistributive tax-and-transfer mechanisms. Although the idea of progressive predistribution has only recently begun to attract the attention of politicians and commentators in the mainstream media, there is an older and more philosophically grounded predistributive (...) approach that goes back to the idea of the property-owning democracy proposed by Economist James Meade and further developed by liberal political philosopher John Rawls. In this article, I argue that neither the Meadeian/Rawlsian POD model, nor the more recent analysis of the idea of progressive predistribution, provide a clear and convincing account of the distinction between predistributive and redistributive mechanisms. I then argue that a more promising account of this distinction is provided by the idea of the socialization of economic rent through taxation of the rental value of land, and that there are good reasons to think that a shift in the burden of taxation away from production and employment and on to the rental value of land might turn out to be both more genuinely predistributive and more effectively progressive than other possible predistributive mechanisms that have recently been proposed, most notably the aggressive taxation of private inheritances as a means to broaden the distribution of privately owned capital and productive property. (shrink)

By considering what we identify as a problem inherent in the ‘nature of the firm’—the risk of abuse of authority—we propound the conception of a social contract theory of the firm which is truly Rawlsian in its inspiration. Hence, we link the social contract theory of the firm with the general theory of justice. Through this path, we enter the debate about whether firms can be part of Rawlsian theory of justice showing that corporate governance principles enter the “basic structure.” (...) Finally, we concur with Sen’s aim to broaden the realm of social justice beyond what he calls the ‘transcendental institutional perfectionism’ of Rawls’ theory. We maintain the contractarian approach to justice but introduce Sen’s capability concept as an element of the constitutional and post-constitutional contract model of institutions with special reference to corporate governance. Accordingly, rights over primary goods and capabilities are granted by the basic institutions of society, but many capabilities have to be turned into the functionings of many stakeholders through the operation of firms understood as post-constitutional institutional domains. The constitutional contract on the distribution of primary goods and capabilities should then shape the principles of corporate governance so that at post-constitutional level anyone may achieve her/his functionings in the corporate domain by exercising such capabilities. In the absence of such a condition, post-constitutional contracts would distort the process that descends from constitutional rights and capabilities toward social outcomes. (shrink)

Este trabajo investiga las implicancias prácticas tributarias de la teoría rawlsiana de la justicia. Para ello se examinan las consideraciones morales que la teoría juzga aplicables al modelo de sociedad denominado "democracia de propietarios". Luego se explicita la manera en que se aplican sus principios en contextos de inequidad social. Finalmente, se consideran dos propuestas de aplicación práctica para basar el sistema tributario sobre los tributos al consumo. Se evalúa si estas propuestas son compatibles con la teoría liberal igualitaria rawlsiana (...) y si colaboran en la promoción de las bases del autorrespeto y la reciprocidad cívica. (shrink)

Substantially increased wealth inequality across the developed world has prompted many philosophers, economists and legal theorists to support comprehensive taxes on all forms of wealth. Proposals include levying taxes on the basis of total wealth, or alternatively the change in the value of capital holdings measured from year-to-year. This contrasts with most existing policies that tax capital assets at the point they are transferred from one beneficiary to another through sale or gifts. Are these tax reforms likely to meet their (...) aims of greater economic and political equality? We argue that these policies are likely to fail because, following neoclassical economic theory, they are based on a conception of capital as possessing given values in what amounts to a static equilibrium. This mischaracterizes the dynamic and subjective character of market economies and the contested value of real instantiations of capital goods. This makes them very difficult, often impossible, to value apart from at the point of voluntary transfer or profit realization. This means most taxes levied on a mark-to-market basis will be arbitrary and unfair. We propose alternative policies based on an income realization approach to taxation that are more likely to curb excessive wealth holdings. This includes introducing international treaties that prohibit preferential tax treatment for individual companies and specific sectors, and broadening the income tax base to include the imputed rent of personal housing wealth. (shrink)

Substantially increased wealth inequality across the developed world has prompted many philosophers, economists and legal theorists to support comprehensive taxes on all forms of wealth. Proposals include levying taxes on the basis of total wealth, or alternatively the change in the value of capital holdings measured from year-to-year. This contrasts with most existing policies that tax capital assets at the point they are transferred from one beneficiary to another through sale or gifts. Are these tax reforms likely to meet their (...) aims of greater economic and political equality? We argue that these policies are likely to fail because, following neoclassical economic theory, they are based on a conception of capital as possessing given values in what amounts to a static equilibrium. This mischaracterizes the dynamic and subjective character of market economies and the contested value of real instantiations of capital goods. This makes them very difficult, often impossible, to value apart from at the point of voluntary transfer or profit realization. This means most taxes levied on a mark-to-market basis will be arbitrary and unfair. We propose alternative policies based on an income realization approach to taxation that are more likely to curb excessive wealth holdings. This includes introducing international treaties that prohibit preferential tax treatment for individual companies and specific sectors, and broadening the income tax base to include the imputed rent of personal housing wealth. (shrink)

This paper investigates an aspect of the question of whether capitalism can be defended as a morally legitimate economic system by asking whether capitalism serves progressive, feminist ends of freedom and gender equality. I argue that although capitalism is subject to critique for increasing economic inequality, it can be seen to decrease gender inequality, particularly in traditional societies. Capitalism brings technological and social innovations that are good for women, and disrupts traditions that subordinate women in materially beneficial and socially progressive (...) ways. Capitalism upholds the ideology of individual rights and the ideal of mutual advantage. By institutionalizing mutual advantage through the logic of voluntary exchange, progressive capitalism promotes the idea that no one is to be expected to sacrifice their interests with no expectation of benefit. Thus capitalism opposes the traditional, sexist ideal of womanly self-sacrifice. (shrink)

How important is the experience of risk in business endeavors for self-respect and moral development? Tomasi prompts this question with his attempt to reconcile Rawls’s theory of justice as fairness with free-market capitalism, by claiming that economic activity is a way for people to exercise their autonomy, responsibility, and self-authorship, including through voluntary risk-taking. Critics argue that the social environment generated through market institutions is ill-suited for developing a sense of responsibility and autonomy among citizens. We refine the case for (...) economic liberty by looking at the link between risk-taking and attitudes toward democratic citizenship. We highlight the critical role of ethical business practice as a contributor to the stability of liberal-democratic societies. (shrink)

While it is a point of agreement in contemporary republican political theory that property ownership is closely connected to freedom as non-domination, surprisingly little work has been done to elucidate the nature of this connection or the constraints on property regimes that might be required as a result. In this paper, I provide a systematic model of the boundaries within which republican property systems must sit and explore some of the wider implications that thinking of property in these terms may (...) have for republicans. The boundaries I focus on relate to the distribution of property and the application of types of property claims over particular kinds of goods. I develop this model from those elements of non-domination most directly related to the operation of a property regime: (a) economic independence, (b) limiting material inequalities, and (c) the promotion of common goods. The limits that emerge from this analysis support intuitive judgments that animate much republican discussion of property distribution. My account diverges from much orthodox republican theory, though, in challenging the primacy of private property rights in the realization of economic independence. The value of property on republican terms can be realized without private ownership of the means of production. (shrink)

While it is a point of agreement in contemporary republican political theory that property ownership is closely connected to freedom as non-domination, surprisingly little work has been done to elucidate the nature of this connection or the constraints on property regimes that might be required as a result. In this paper, I provide a systematic model of the boundaries within which republican property systems must sit and explore some of the wider implications that thinking of property in these terms may (...) have for republicans. The boundaries I focus on relate to the distribution of property and the application of types of property claims over particular kinds of goods. I develop this model from those elements of non-domination most directly related to the operation of a property regime: (a) economic independence, (b) limiting material inequalities, and (c) the promotion of common goods. The limits that emerge from this analysis support intuitive judgments that animate much republican discussion of property distribution. My account diverges from much orthodox republican theory, though, in challenging the primacy of private property rights in the realization of economic independence. The value of property on republican terms can be realized without private ownership of the means of production. (shrink)

Chapter. 1. Philosophical. Perspectives. on. Democracy. in. the. Twenty-First. Century: Introduction. Ann E. Cudd and Sally J. Scholz Abstract Recent global movements, including the Arab Spring, the Occupy Movement, as well as polarizing ...

John Rawls is arguably the most important political philosopher of the past century. His theory of justice has set the agenda for debate in mainstream political philosophy for the past forty years, and has had an important influence in economics, law, sociology, and other disciplines. However, despite the importance and popularity of Rawls's work, there is no clear picture of what a society that met Rawls's principles of justice would actually look like. This article sets out to explore that question.