ECON 4270 Distributive Justice Lecture 9: Libertarianism · ECON 4270 Distributive Justice Lecture...

ECON 4270 Distributive Justice Lecture 9: Libertarianism

ECON 4270 Distributive JusticeLecture 9: Libertarianism

Hilde Bojerwww.folk.uio.no/hbojer

[email protected]

27 October 2009


Libertarianism

Libertarianism

Libertarianism isNOTliberalismThe core of libertarianism is

I minimal state

I you are entitled to what you produce


Libertarianism

Libertarianism

Distinguished adherents:F. Hayek, M Friedman, R. Nozick

Two main lines of justification:

1. Liberty of the individual

2. Efficiency of the free market


Libertarianism

Libertarianism

Distinguished adherents:F. Hayek, M Friedman, R. NozickTwo main lines of justification:

1. Liberty of the individual

2. Efficiency of the free market


Libertarianism

Nozick

Robert Nozick, 1938–2002Anarchy, the State and Utopia

A classic of libertarian philosophyA consistent, logical exposition of libertarianism


Libertarianism

Nozick

Robert Nozick, 1938–2002Anarchy, the State and UtopiaA classic of libertarian philosophy

A consistent, logical exposition of libertarianism


Libertarianism

Nozick

Robert Nozick, 1938–2002Anarchy, the State and UtopiaA classic of libertarian philosophyA consistent, logical exposition of libertarianism


Libertarianism

Nozick

My reading differs somewhat from Kymlicka’s

Nozick telles a story to justify minimal stateIn the ‘beginning’Man (individual man) acquired holdings that were free to grab(Lockean proviso)But he was exposed to robbery and attacksHobbes’s famous: life would be solitary, poor, nasty, brutish andshortTherefore: it would be rational to join forces with other menfor purposes of defence and other protectionThe night watchman stateIt would be rational to pay for protectionBut otherwise he would insist on keeping what he had acquiredand what he had produced.


Libertarianism

Nozick

My reading differs somewhat from Kymlicka’sNozick telles a story to justify minimal state

In the ‘beginning’Man (individual man) acquired holdings that were free to grab(Lockean proviso)But he was exposed to robbery and attacksHobbes’s famous: life would be solitary, poor, nasty, brutish andshortTherefore: it would be rational to join forces with other menfor purposes of defence and other protectionThe night watchman stateIt would be rational to pay for protectionBut otherwise he would insist on keeping what he had acquiredand what he had produced.


Libertarianism

Nozick

My reading differs somewhat from Kymlicka’sNozick telles a story to justify minimal stateIn the ‘beginning’Man (individual man) acquired holdings that were free to grab

(Lockean proviso)But he was exposed to robbery and attacksHobbes’s famous: life would be solitary, poor, nasty, brutish andshortTherefore: it would be rational to join forces with other menfor purposes of defence and other protectionThe night watchman stateIt would be rational to pay for protectionBut otherwise he would insist on keeping what he had acquiredand what he had produced.


Libertarianism

Nozick

My reading differs somewhat from Kymlicka’sNozick telles a story to justify minimal stateIn the ‘beginning’Man (individual man) acquired holdings that were free to grab(Lockean proviso)But he was exposed to robbery and attacks

Hobbes’s famous: life would be solitary, poor, nasty, brutish andshortTherefore: it would be rational to join forces with other menfor purposes of defence and other protectionThe night watchman stateIt would be rational to pay for protectionBut otherwise he would insist on keeping what he had acquiredand what he had produced.


Libertarianism

Nozick

My reading differs somewhat from Kymlicka’sNozick telles a story to justify minimal stateIn the ‘beginning’Man (individual man) acquired holdings that were free to grab(Lockean proviso)But he was exposed to robbery and attacksHobbes’s famous: life would be solitary, poor, nasty, brutish andshort

Therefore: it would be rational to join forces with other menfor purposes of defence and other protectionThe night watchman stateIt would be rational to pay for protectionBut otherwise he would insist on keeping what he had acquiredand what he had produced.


Libertarianism

Nozick

My reading differs somewhat from Kymlicka’sNozick telles a story to justify minimal stateIn the ‘beginning’Man (individual man) acquired holdings that were free to grab(Lockean proviso)But he was exposed to robbery and attacksHobbes’s famous: life would be solitary, poor, nasty, brutish andshortTherefore: it would be rational to join forces with other menfor purposes of defence and other protection

The night watchman stateIt would be rational to pay for protectionBut otherwise he would insist on keeping what he had acquiredand what he had produced.


Libertarianism

Nozick

My reading differs somewhat from Kymlicka’sNozick telles a story to justify minimal stateIn the ‘beginning’Man (individual man) acquired holdings that were free to grab(Lockean proviso)But he was exposed to robbery and attacksHobbes’s famous: life would be solitary, poor, nasty, brutish andshortTherefore: it would be rational to join forces with other menfor purposes of defence and other protectionThe night watchman state

It would be rational to pay for protectionBut otherwise he would insist on keeping what he had acquiredand what he had produced.


Libertarianism

Nozick

My reading differs somewhat from Kymlicka’sNozick telles a story to justify minimal stateIn the ‘beginning’Man (individual man) acquired holdings that were free to grab(Lockean proviso)But he was exposed to robbery and attacksHobbes’s famous: life would be solitary, poor, nasty, brutish andshortTherefore: it would be rational to join forces with other menfor purposes of defence and other protectionThe night watchman stateIt would be rational to pay for protection

But otherwise he would insist on keeping what he had acquiredand what he had produced.


Libertarianism

Nozick

My reading differs somewhat from Kymlicka’sNozick telles a story to justify minimal stateIn the ‘beginning’Man (individual man) acquired holdings that were free to grab(Lockean proviso)But he was exposed to robbery and attacksHobbes’s famous: life would be solitary, poor, nasty, brutish andshortTherefore: it would be rational to join forces with other menfor purposes of defence and other protectionThe night watchman stateIt would be rational to pay for protectionBut otherwise he would insist on keeping what he had acquiredand what he had produced.


Libertarianism

If the world were wholly just, the following inductive definitionwould exhaustively cover the subject of justice in holdings.

1. A person who acquires a holding in accordance with theprinciple of justice in acquisition is entitled to that holding.

2. A person who acquires a holding in accordance with theprinciple of justice in transfer, from someone else entitled tothat holding, is entitled to that holding.

3. No one is entitled to a holding except by (repeated)applications of 1 and 2. (Nozick 1974: 151)


Libertarianism

Justice in transfer?

Voluntary giftsCharityInheritanceBut not transfers paid for by taxes


Libertarianism

Justice in transfer?Voluntary giftsCharityInheritance

But not transfers paid for by taxes


Libertarianism

Justice in transfer?Voluntary giftsCharityInheritanceBut not transfers paid for by taxes


Libertarianism

The principle of justice in acquisition??meanseither:having aquired it without dispossessing anyone else (resources)

orhaving produced it (fruit of one’s labour)‘Things come into the world already attached to people havingentitlements over them.’The crucial question: how do we know what he has produced?Depends on the value of his productand the value of the inputs


Libertarianism

The principle of justice in acquisition??meanseither:having aquired it without dispossessing anyone else (resources)orhaving produced it (fruit of one’s labour)

‘Things come into the world already attached to people havingentitlements over them.’The crucial question: how do we know what he has produced?Depends on the value of his productand the value of the inputs


Libertarianism

The principle of justice in acquisition??meanseither:having aquired it without dispossessing anyone else (resources)orhaving produced it (fruit of one’s labour)‘Things come into the world already attached to people havingentitlements over them.’

The crucial question: how do we know what he has produced?Depends on the value of his productand the value of the inputs


Libertarianism

The principle of justice in acquisition??meanseither:having aquired it without dispossessing anyone else (resources)orhaving produced it (fruit of one’s labour)‘Things come into the world already attached to people havingentitlements over them.’The crucial question: how do we know what he has produced?

Depends on the value of his productand the value of the inputs


Libertarianism

The principle of justice in acquisition??meanseither:having aquired it without dispossessing anyone else (resources)orhaving produced it (fruit of one’s labour)‘Things come into the world already attached to people havingentitlements over them.’The crucial question: how do we know what he has produced?Depends on the value of his productand the value of the inputs


Libertarianism

Nozick’ answer: market prices

But he does not explain whyexcept perhaps: market transactions are freeHe also does not say what kind of market:perfect competitionor is monopoly power etc permitted?Bill Gates and MicrosoftOPEC


Libertarianism

Nozick’ answer: market pricesBut he does not explain whyexcept perhaps: market transactions are free

He also does not say what kind of market:perfect competitionor is monopoly power etc permitted?Bill Gates and MicrosoftOPEC


Libertarianism

Nozick’ answer: market pricesBut he does not explain whyexcept perhaps: market transactions are freeHe also does not say what kind of market:perfect competitionor is monopoly power etc permitted?

Bill Gates and MicrosoftOPEC


Libertarianism

Nozick’ answer: market pricesBut he does not explain whyexcept perhaps: market transactions are freeHe also does not say what kind of market:perfect competitionor is monopoly power etc permitted?Bill Gates and Microsoft

OPEC


Libertarianism

Nozick’ answer: market pricesBut he does not explain whyexcept perhaps: market transactions are freeHe also does not say what kind of market:perfect competitionor is monopoly power etc permitted?Bill Gates and MicrosoftOPEC


Libertarianism

Perfect competition requires strict state control

As explained by Adam Smith


Libertarianism

Perfect competition requires strict state controlAs explained by Adam Smith


Libertarianism

Nozick realises that the present distribution is not just by hisdefinition

Self-ownership?


Libertarianism

Nozick realises that the present distribution is not just by hisdefinitionSelf-ownership?


Libertarianism

Efficiency

Friedman and Hayek claim that the free market is the mostefficient way of organisingthe economy and therefore to he advantage of everybody, at leastin the long run.

Standard neoclassic economic theory: a market in perfectcompetition is efficient under certain assumptions.(A normative statement)


Libertarianism

Efficiency

Friedman and Hayek claim that the free market is the mostefficient way of organisingthe economy and therefore to he advantage of everybody, at leastin the long run.Standard neoclassic economic theory: a market in perfectcompetition is efficient under certain assumptions.(A normative statement)


Libertarianism

Efficiency

The most important assumptions are:

I Perfect information

I No external effects

I No public goods


Libertarianism

Efficiency

These so-called market imperfections call for governmentintervention, according to most economists

BUT some claim they can be handled by private transactions(Coase theorem)Som analysts would also claim that government intervention, inspite of justifications,usually is inefficient (too late, too clumsy)Nozick maintains that market imperfections is not worth the lossof freedom


Libertarianism

Efficiency

These so-called market imperfections call for governmentintervention, according to most economistsBUT some claim they can be handled by private transactions(Coase theorem)

Som analysts would also claim that government intervention, inspite of justifications,usually is inefficient (too late, too clumsy)Nozick maintains that market imperfections is not worth the lossof freedom


Libertarianism

Efficiency

These so-called market imperfections call for governmentintervention, according to most economistsBUT some claim they can be handled by private transactions(Coase theorem)Som analysts would also claim that government intervention, inspite of justifications,usually is inefficient (too late, too clumsy)

Nozick maintains that market imperfections is not worth the lossof freedom


Libertarianism

Efficiency

These so-called market imperfections call for governmentintervention, according to most economistsBUT some claim they can be handled by private transactions(Coase theorem)Som analysts would also claim that government intervention, inspite of justifications,usually is inefficient (too late, too clumsy)Nozick maintains that market imperfections is not worth the lossof freedom


Libertarianism

My own criticism:Libertarians tend to forget about women and children

What is the market value og a child?(Friedman: children have rights)The state is not the only source of oppression and loss of freedomBenevolent government intervention can be a protection againstoppression in the family


Libertarianism

My own criticism:Libertarians tend to forget about women and childrenWhat is the market value og a child?

(Friedman: children have rights)The state is not the only source of oppression and loss of freedomBenevolent government intervention can be a protection againstoppression in the family


Libertarianism

My own criticism:Libertarians tend to forget about women and childrenWhat is the market value og a child?(Friedman: children have rights)The state is not the only source of oppression and loss of freedomBenevolent government intervention can be a protection againstoppression in the family

Libertarianism

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