Thursday 8 March 2012

Violence and disparity: two challenges for non-patterned principles of justice and libertarian capitalism

The following is a post by Mikael Kristiansen who is the serving treasurer for the QUB Philosophy Society and a 2nd year undergraduate studying Politics, Philosophy and Economics:

Consider a society with a widely disproportionate distribution of wealth, where only a small percentage of people, or even a single person, owns property, and the rest subsist solely on wages from selling their labour.  This state of affairs, depending on your situation and interpretation of the actual world economy, may sound somewhat familiar.  In what sense can this pattern of distribution of goods be called just, and what remedial measures, if any, should be taken?  Some theories are understood to predicate the answers to these questions on a distribution meeting some sort of social goal or its conformity to an ideal pattern of holdings.  In contrast, a right-libertarian theory of justice characteristically holds that a distribution of goods in a society is just inasmuch as it is the result of free exchanges, regardless of the pattern of actual holdings.  As a result, these so-called non-patterned theories are concerned with procedural aspects of property accumulation as relevant to justice. This, according to Robert Nozick, is made clear via an analogy to logical inference:  ‘As correct rules of inference are truth-preserving, and any conclusion deduced via repeated application of such rules from only true premises is itself true, so the means of transition from one situation to another specified by the principle of justice in transfer are justice-preserving...’ (1977, p. 151).  Rival theories that make reference to social goals (e.g egalitarianism and utilitarianism) are charged with an error comparable to manipulating an argument to reach a favoured conclusion and, perhaps more heinously, unjustifiably forcing individuals to become resources for others (i.e. by forcibly redistributing the fruit of their labour or their entitled property, etc.).  Thus, a free market in capital and labour is characteristically prescribed.

Two challenges are outlined below that have been touched upon by Will Kymlicka and Jeffrey Reiman.  These are directed at Robert Nozick’s entitlement theory of justice, which is of course not the only right-libertarian theory of justice, but it is perhaps the most well-known, so it serves well as a starting point for discussion and consideration. How other theories may fare with these puzzles will hopefully be brought forth by commentators to this article.

1. Application to the actual world? - (Kymlicka 2002)

A well-known objection, which Nozick himself considers, relates to implications of the current distribution of wealth having arisen through a history of force - e.g. colonialism, slavery, war, etc.  Since justness according to Nozick’s theory is predicated on a history of free exchange that specifically disallows force, it seems unclear how his theory defends any actual distributions of goods from redistribution.  Since such an incalculable amount of prior exchanges were not voluntary, a free market only multiplies illegitimate exchanges and, on a purely non-patterned historical account, cannot be morally superior to redistribution, let alone necessary.  Thus, it seems the theory relies on a pattern of initial states of affair, only realizable in the actual world by some type of action outside its own scope.

2. Effects of large-scale property ownership on liberty (Reiman 1981)

Another challenge for the libertarian theory of justice is to show how large-scale property ownership (in a possible or actual world) does not result in powers tantamount to the type of force involved in making an individual into a resource for others.  For instance, the ability for someone to accumulate unlimited property may give that person near absolute power over the employment of a propertyless person.  In this case, the latter is faced with starvation unless they accept whatever terms of employment are offered, no matter how undesirable or dangerous the conditions or insufficient the compensation.  How this is approached by Nozick reveals two important incoherencies, according to Jeffrey Reiman (1981). 

 a. Defence from property rights (and consequent circularity).

The first approach is to claim exercise of one’s rights in such cases does not conflict with liberty.  Following Nozick, the type of situation facing the propertyless person outlined above does not constitute force because their lack of options is only the result of other people’s exercise of their property rights, and these are taken to be compatible with everyone’s right to liberty.  If these acts constrain someone else’s options, it does not mean that the latter’s choice is not voluntary; it is voluntary (i.e. there is no violation of liberty) so long as everyone has acted within their rights.[1]  This defence, however, employs a troubling circularity, according to Reiman, by defining voluntary action within one’s rights by reference to one’s property rights. This is because previously Nozick establishes the right to property itself by reference to the right to liberty: one’s right not to be used as a resource by others begets one’s right to property (thus precluding redistribution, etc.).  Reiman notes:

 ‘And here the circle is complete: Property rights derive their content and normative force from the right to liberty. But the right to liberty is defined by reference (shall we say deference?) to the right to property: my right to liberty is my freedom from interferences other than those resulting from others' exercise of their right to property. If the validity of property rights is to be traced to their compatibility with the right to liberty, this compatibility is contrived if the exercise of rights to property are by definition not violations of the right to liberty.’ (1981, p. 88, emphasis added)

Thus, the challenge concerned must be dispelled without reference to a right to property to avoid circularity.

b. Is there a morally significant difference between large-scale and small-scale property ownership?

At this point, then, the right-libertarian can remind us that the only thing that can matter regarding the distribution in question is whether just procedures have been followed, thus being justice-preserving in the sense held by Nozick’s analogy with logical inference.  However, such an approach implicitly treats ‘the moral relationships between persons that results when large numbers of individuals owning little more than the shirts on their backs and the muscles in their arms confront, on the “free market,” a small number who have accumulated large property holdings.... as simple multiplications of the encounter between small entrepreneurs and free workers...’ (Reiman 1981, p. 89).  This is precisely what is in question, and it may give us good ground to doubt the soundness of the analogy with logic.  Reiman explains:

‘[T]he truth of facts does not depend on their impact on human beings while the justice of action does.  This difference renders Nozick’s analogy invalid and shows his use of it to be a variety of the fallacy of composition. This is because where impact on human beings is concerned there are threshold effects, differences in degree become differences in kind, quantitative changes become qualitative changes. This can be easily seen if we substitute for "truth" in the analogy, a characteristic like "health" which clearly depends on impact on human beings. Substitute for a "true premise," "a physical fact conducive to health"; and for "valid inferences," "physical operations compatible with health." If you think that any number of repeated operations of the latter on the former are health preserving in the way that any number of valid inferences are truth preserving, try substituting "small doses of iodine for the treatment of thyroid conditions" for the "physical fact conducive to health," and "injection by sterilized hypodermic needle" for the "physical operation compatible with health." Now try any number of repetitions of the latter on the former, but first write out your will.’ (1981, p. 91)

From this, we might have good reason to hold with Reiman that ‘property accumulation has threshold effects on liberty’, and that the rights accompanying a reasonable concept of ownership will vary according to the size (1981, p. 91). We might also be convinced that a historical account of justice will not give a moral prohibition against redistribution of holdings that originate substantially in colonialism and violence.

What are your thoughts on these problems? Are the problems fundamental to any non-patterned or right-libertarian account of justice, or are they specific to Nozick?  What types of theories might be preferred to the one outlined above?

Moreover, in what sense might these concerns problematize the actual world?  How might we know what level of wealth disparity (or labour share of national income, etc.) would signal liberty threshold-effects in a region or society?  What types of limits, if any, might we put on property rights?  How might we view the relationship between wealthy and poor countries when it comes to development issues? What about the relationship between multinational corporations and workers?

Further Reading / Bibliography

  • Cohen, G.A. (1995). Self-Ownership, Freedom and Equality. Cambridge: Cambridge University Press.
  • Kymlicka, W. (2002). Contemporary Political Philosophy: An Introduction, 2nd Ed. Oxford: Oxford University Press, especially pp. 107-103.
  • Nozick, R. (1977). Anarchy, State, and Utopia. New York: Basic Books.
  • Reiman, J.H. (1981). ‘The Fallacy of Libertarian Capitalism’. In Ethics, Vol. 92, No. 1, pp. 85-95.

[1] He draws on an analogy where a group of men and women prefer to be married over not, and all get married but one man and one woman, who are each other’s last preferences (and everyone else’s). The choices of others have left them with no option but each other for marriage, and even though they are each other’s last choice, one would not call their choice to marry involuntary, according to Nozick. This situation is meant to reflect that of the property-less person, choosing between working and starving. Everyone has acted within their rights, so no violation of liberty has occurred (1977 pp. 262-3).  See also Reiman (1981, p. 87-8).

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