Egalitarian Preferences and Envy

Transcription

1 Individual preferences about income distributions Egalitarian Preferences and Envy Seminar Inequality SS 2010 Carolin Gärtig 1

2 Introduction Pareto-efficient income distributions imply no malevolence or benevolence, they imply egoism and the homo economicus individual preference function is independent But aren t individual preferences also influenced by the welfare of others and their specific income? And how could individual preferences be influenced by envy? Finally, does envy lead to egalitarian preferences? 2

3 Definition Envy is pain at the good fortune of others. (Aristotle) Envy aims, at least in terms of one s wishes, at destroying others good fortune (Kant) Envy is the suffering from the relative betterment of others ( rival ) concerning personal attributes, status or wealth ( good ) Not necessarily directed at the envied good itself but to the fact that someone else got it Agreement in science and society that envy is a passive and negative emotion that people would rather hide than confess (taboo, deadly sin (rel.)) Seen as symptom of the human tendency to evaluate one s well being comparatively 3

4 Definition Envy has aroused controversies in political philosophy Envy could lead to: productive reaction: closing gap through emulation (outdo rival s advantage) liberal view destructive reaction: closing gap through degradation (undo rival s advantage) egalitarian view Regarding the latter: the envious preference here is that neither subject nor rival has the good Hypothesis: egalitarian views of justice are motivated by envy 4

5 Envy and Justice Egalitarian Theory In egalitarian theory: Inequalities are bad because they are unjust Envy is seen as a social phenomenon of an unequal society has to be reduced through equality Mass homogeneity is seen more essential for the betterment of society than individual initiative By leveling all distinctions, collective peace and unity shall be the result Basis for socialist, communist theories fight of the inferior for an equal resource distribution 5

6 Envy and Justice Marx point of view Marx (1844) Underdeveloped communism : envy is a hidden form of greediness against every private property that appears more wealthy The envious ambition is overall leveling down of private property Developed Communism : no private property only allows public property 6

7 Envy and Justice Rawls point of view Rawls (1975) In the original position from which principles of justice are chosen, Rawls assume the absence of envy In the second part, envy can occur Rawls: Envy is harmful - the envious person tends to actions that bring disadvantages for both sides just to close the gap Unequal society is to blame for envy excusable general envy But envy would not pose a threat to his Theory of Justice because liberty and status of equal citizens encourage self-respect competitive economy will prevent inequalities that raise envy 7

8 Envy and Justice Liberal Theory In liberal theory: Envy cannot be reduced through equality, people will always compare Not better for the society that neither subject nor rival possesses the good Envied person will reduce performance to the average to reduce envy harmful consequences for society (less performance, less innovation) Egalitarian distribution without regard to individual contribution is unjust Justice is the adjudication of social goods in proportion to the returns of each member of the society Progress demands inequality (and superior minorities) impossible to develop an economic process, without becoming unequal 8

9 Social Transfers and Envy Liberal Hypothesis: In modern societies envy expresses in claims for social justice and political interventionism Envy is used in politics envious feeling of inferiority as political tactic Example: Progressive Taxation / Wealth Tax: Dispossession of the superior fulfill ambition of envious Intervention provokes envy in the modern social state People don t have to close the gap through own effort but could choose the destructive reaction (subsidy), depending on what is more promising destructive consequences do not go back on envy per se but on the combination with political intervention (example: USA vs. EU) 9

10 Conclusion Envy-free society is utopia because: humans are born with different equipment of given or gained resources or simply in luck equal income distribution is impossible men s envy is at its most intense where all are almost equal Political systems that promote egalitarianism regardless of ability, intelligence, capability, experience are leveling down society in various ways Envy can have productive consequences in a free market the envious has to orientate on the welfare of others Market and competition neutralize envy, emulation is road to social stability 10

11 Thanks for your attention! 11