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

Individual preferences about income distributions

Egalitarian Preferences and Envy

              Seminar Inequality
                  SS 2010
                Carolin Gärtig

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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?

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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

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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

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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
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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

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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

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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

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)

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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

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Thanks for your attention!

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