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Chapter Eleven: Fair Shares: Dividing the Value Added
Learning Objectives of Chapter Eleven
1. Recall the definition of moral desert.
3. Describe how utilitarianism can be used as a theory of justice.
5. Discuss the social contract theory.
6. Evaluate the strengths and weaknesses of the different theories of justice
SUMMARY: Chapter Eleven addresses the question of whether inequalities matter. The
more. Utilitarianism is analyzed as a possible theory of justice. Libertarianism and
social contract theory are also introduced.
A Particular Right-Claim: Fairness and Executive Compensation
Do inequalities in the world matter morally? Businesses most directly affect income
distribution through choices about compensation. Executive compensation is
controversial, because of the large incomes relative to others.
Two meanings of deservingness:
Is it distributively just?
Moral desert: benefits that properly accrue to us as rewards for something we
have or have not done.
Two problems with deservingness:
Whether we can deserve anything at all
Utilitarianism As a Theory of Justice
Justice and fairness are a part of well-being in utilitarianism, which generally ignores
distribution. Utilitarianism recognizes well-being as the only currency and measures
that currency only through additive aggregation.
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Entitlements: Nozickian Libertarianism
Libertarianism: we do not need to justify our incomes with respect to beneficial
consequences. We are entitled to whatever income and wealth we can manage to get
from the free market, regardless of inequality.
Defenses of Libertarianism:
entitlement theory of justice states that any distribution of income
y chosen actions, and that any
redistribution not consented to by those affected is an immoral violation of their
rights.
Just and Unjust Inequalities: Rawlsian Social Contract Theory
Even if no possessions are acquired or transferred unjustly, the distribution of
material holdings is affected by a host of circumstances which are not autonomously
chosen. Examples:
Distribution of natural talents
John Rawls suggested social contract theory, which means viewing society as a
ng as well as
common interests.
The mutual advantage is that society members mutually benefit from pursuing
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Raises criticism of Nozickian libertarianism:
Respecting rights cannot mean just letting things take their course, because:
o –
Social contract theory promises to yield specific principles of distributive justice, but
it also offers a methodology for establishing and justifying those principles. That
method is to show that rational people would freely choose them in the original
position.
Two Features of Social Contract Theory:
The difference principle: social and economic inequalities are to be arranged so that
to positions and offices open to all.
Two objections to justice as fairness: