The Distributive Justice of the Market - Part II
Philosophers tried to specify a "bundle" or "package" of goods, services, and intangibles (like information, or skills, or knowledge). Justice - though not necessarily happiness - is when everyone possesses an identical bundle. Happiness - though not necessarily justice - is when each one of us possesses a "bundle" which reflects his or her preferences, priorities, and predilections. None of us will be too happy with a standardized bundle, selected by a committee of philosophers - or bureaucrats, as was the case under communism.The market allows for the exchange of goods and services between holders of identical bundles. If I seek books, but detest oranges - I can swap them with someone in return for his books.
That way both of us are rendered better off than under the strict egalitarian version.Still, there is no guarantee that I will find my exact match - a person who is interested in swapping his books for my oranges. Illiquid, small, or imperfect markets thus inhibit the scope of these exchanges. Additionally, exchange participants have to agree on an index: how many books for how many oranges? This is the price of oranges in terms of books.Money - the obvious "index" - does not solve this problem, merely simplifies it and facilitates exchanges. It does not eliminate the necessity to negotiate an "exchange rate". It does not prevent market failures.
In other words: money is not an index. It is merely a medium of exchange and a store of value. The index - as expressed in terms of money - is the underlying agreement regarding the values of resources in terms of other resources (i.e., their relative values).The market - and the price mechanism - increase happiness and welfare by allowing people to alter the composition of their bundles. The invisible hand is just and benevolent. But money is imperfect.
The aforementioned Rawles demonstrated (1971), that we need to combine money with other measures in order to place a value on intangibles.The prevailing market theories postulate that everyone has the same resources at some initial point (the "starting gate"). It is up to them to deploy these endowments and, thus, to ravage or increase their wealth. While the initial distribution is equal - the end distribution depends on how wisely - or imprudently - the initial distribution was used.Egalitarian thinkers proposed to equate everyone's income in each time frame (e.g., annually). But identical incomes do not automatically yield the same accrued wealth. The latter depends on how the income is used - saved, invested, or squandered.
Relative disparities of wealth are bound to emerge, regardless of the nature of income distribution.Some say that excess wealth should be confiscated and redistributed. Progressive taxation and the welfare state aim to secure this outcome. Redistributive mechanisms reset the "wealth clock" periodically (at the end of every month, or fiscal year). In many countries, the law dictates which portion of one's income must be saved and, by implication, how much can be consumed. This conflicts with basic rights like the freedom to make economic choices.The legalized expropriation of income (i.e., taxes) is morally dubious.
Anti-tax movements have sprung all over the world and their philosophy permeates the ideology of political parties in many countries, not least the USA. Taxes are punitive: they penalize enterprise, success, entrepreneurship, foresight, and risk assumption. Welfare, on the other hand, rewards dependence and parasitism.According to Rawles' Difference Principle, all tenets of justice are either redistributive or retributive. This ignores non-economic activities and human inherent variance. Moreover, conflict and inequality are the engines of growth and innovation - which mostly benefit the least advantaged in the long run.
Experience shows that unmitigated equality results in atrophy, corruption and stagnation. Thermodynamics teaches us that life and motion are engendered by an irregular distribution of energy. Entropy - an even distribution of energy - equals death and stasis.What about the disadvantaged and challenged - the mentally retarded, the mentally insane, the paralyzed, the chronically ill? For that matter, what about the less talented, less skilled, less daring? Dworkin (1981) proposed a compensation scheme. He suggested a model of fair distribution in which every person is given the same purchasing power and uses it to bid, in a fair auction, for resources that best fit that person's life plan, goals and preferences.Having thus acquired these resources, we are then permitted to use them as we see fit. Obviously, we end up with disparate economic results.
But we cannot complain - we were given the same purchasing power and the freedom to bid for a bundle of our choice.Dworkin assumes that prior to the hypothetical auction, people are unaware of their own natural endowments but are willing and able to insure against being naturally disadvantaged. Their payments create an insurance pool to compensate the less fortunate for their misfortune.This, of course, is highly unrealistic. We are usually very much aware of natural endowments and liabilities - both ours and others'. Therefore, the demand for such insurance is not universal, nor uniform. Some of us badly need and want it - others not at all.
It is morally acceptable to let willing buyers and sellers to trade in such coverage (e.g., by offering charity or alms) - but may be immoral to make it compulsory.Most of the modern welfare programs are involuntary Dworkin schemes. Worse yet, they often measure differences in natural endowments arbitrarily, compensate for lack of acquired skills, and discriminate between types of endowments in accordance with cultural biases and fads.Libertarians limit themselves to ensuring a level playing field of just exchanges, where just actions always result in just outcomes. Justice is not dependent on a particular distribution pattern, whether as a starting point, or as an outcome. Robert Nozick "Entitlement Theory" proposed in 1974 is based on this approach.That the market is wiser than any of its participants is a pillar of the philosophy of capitalism. In its pure form, the theory claims that markets yield patterns of merited distribution - i.e., reward and punish justly.
Capitalism generate just deserts. Market failures - for instance, in the provision of public goods - should be tackled by governments. But a just distribution of income and wealth does not constitute a market failure and, therefore, should not be tampered with..
Part 2 of 5 On The Home Business Set-Up Guide
Dear Reader,These articles will provide a step by step guide on how to start and run a home based business based on my experiences and other home business owners.
This is part 2 in a series of 5 articles.
They are written in a basic format and where possible main points are summarised in an attempt to be understood by all.
I have tried to minimise the technical jargon as much as possible.So lets jump right in and see what we need to know about starting and running a home based business.Regards,Alvinhttp://www.parttimeincome.orgLegal StructuresThe legal structure of your business is very important as it is a function of liabilities and tax deduction.
The most common structures are:
- Sole trader
- Partnership
- Company
- Trust
Commonly you may start out as...
Part 2 of 5 On The Home Business Set-Up Guide
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You Can Start A Successful Catering Business From Home
Have you ever said to yourself: How do I start a catering business out of my house?Well, the short answer is yes, you can open a catering business with little more than your delicious homemade recipes and a little business know how.
Perhaps you've been cooking for years as a hobby and are used to getting many compliments on your culinary creations.Opening a catering business may be something you've dreamed about for a while, but aren't quite sure how to go about getting started. Learning how to get the ball rolling on your catering business idea is the first step on the road to actually running a successful small food business.Keep in mind that you will now be turning a hobby into a business catering food to local clients who may include individuals, as well as, local companies who you'll want to establish long-term relationships with. It will also cost you some money to get going.First, you'll have to think of a catering business name, something easy to remember but unique...
Life insurance > You Can Start A Successful Catering Business From Home
Fitness Expert and Motivational Speaker, Lieutenant Colonel Bob Weinstein Selected as Health and Fitness Advisor for Affinity Solutions
Bob joins a panel of experts who are featured on the rewards programs for the consumers of LendingTree, Inc., the Software of the Month Club (SOMC), Unitrin Auto Insurance, Teachers' Insurance and Response Insurance.
These online programs were developed by Affinity Solutions and reach in excess of 3 million users nationwide. The expert panels are currently comprised of more than 40 experts from different fields, including Marlena Spieler, the award-winning food writer and columnist; Dr. Daniel Kirschenbaum, sport psychology consultant for the U.S. Olympic Committee; Lynda Lyday, a regular home improvement specialist on The Discovery Channel; and many others.For more background on Affinity Solutions, visit their corporate website at www.affinitysolutions.com.About the Trainer and Wellness Coach Bob Weinstein:Born in Washington, D.C., grew up in Virginia, Bob spent twenty years in Berlin, Germany.
Fitness Expert and Motivational Speaker, Lieutenant Colonel Bob Weinstein Selected as Health and Fitness Advisor for Affinity Solutions
Life insurance > Fitness Expert and Motivational Speaker, Lieutenant Colonel Bob Weinstein Selected as Health and Fitness Advisor for Affinity Solutions
CLU? and ChFC? Designations to be Offered in Thailand
The American College, America's leading financial services educator, announced today that it has entered into an agreement with The Thailand Insurance Institute to offer the CLU? (Chartered Life Underwriter) and ChFC? (Chartered Financial Consultant) designation programs to interested Thailand financial services professionals. The Thailand Insurance Institute currently offers the LUTC Fellow (LUTCF) designation and for the past five years has worked closely with The College to promote the importance of professional education in the financial services field. Thailand Insurance Institute is recognized as one of The College's most successful partners in Southeast Asia.The CLU and ChFC designations are recognized as some of the world's most prestigious credentials for financial service professionals. Since the inception of these programs over 94,000 professionals have earned the CLU and over 41,000 have earned the ChFC.
Each of the designations enhances a professional's ability...
Life insurance > CLU? and ChFC? Designations to be Offered in Thailand
Whiplash Compensation Going Ballistic
One of the most common accident claims today is whiplash compensation. Over 200,000 car accident claims occur in the UK every year and the number increases as more and more people pass their driving test and get use to the road.
Many drivers even before they qualify for a license think its cool to drive knowing little about the real safety on the roads. Generally starts off by peer pressure and could drastically lead to a dangerous, unforgettable event.
So whiplash compensation claims
are on the rise. Everyone feels they're a better driver, but who are you really proving it to. Worse case scenario a death is not really justifiable if you think about it.
Talking about such dramatic incidents, how many people of the loved ones passed away really consider making a whiplash injury claim? Initially not many!
Car...
Life insurance > Whiplash Compensation Going Ballistic
Innovation In Online Jobs Search. Niche Publishers Leading the way
(ContentDesk) March 25, 2006 -- Niche jobs board InsuranceJobsBoard.com the Jobs Portal dedicated to the Insurance and Financial Services sector today announced the launch of its industry specific job search tool bar. This new innovation allows jobs seekers direct access to the site from anywhere in the web and links straight into the search functionality enabling direct and proactive search of the 1000s of vacancies currently advertised.Additionally the toolbar functionality features access to job seeker resources such as google search, live industry news, google & yahoo finance, rss feeds and industry blogs. It's an entirely free download, with no spyware or viruses, does not open pop-ups or hijack
searches, and no personal information is required for installation. User trials conducted via jobseekers and advertisers registered with the site have found it to be a superb tool to assist in their job seeking activities and account management.Commenting on the launch of this new...
Life insurance > Innovation In Online Jobs Search. Niche Publishers Leading the way
Isurance Claim Handling Online - TPA Adjuster System
Claims management and administration software systems enable insurance claims adjusters, supervisors, and managers to process incidents and administer claims more efficiently and at a lower cost than traditional paper file and transport methods.
Some areas that are made more efficient, thus lowering costs, are otherwise insufficient tracking and handling of medical provider billing (especially with medical bill repricing) and proper compensation scheduling.
For larger claim adjuster organizations, tying claims data across multiple locations is a must.
A complete claims management system will address these issues and more.Claims Management System by Quick Internet Software Solutions (QISS), a comprehensive CMS, is a leading claims management software system that reduces cost and work and is Web-based to facilitate cross-location claims administration.
For all claim types, medical bills are entered either via online screens by in-house repricing professionals,...
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