I agree with Mr Wolf that freedom is centrally important. But how should we see the demands of freedom when habit-forming behaviour today restricts the freedom of the same person in the future? Once acquired, the habit of smoking is hard to kick, and it can be asked, with some plausibility, whether youthful smokers have an unqualified right to place their future selves in such bondage.
A similar issue was addressed by the leading apostle of liberty, John Stuart Mill, when he argued against a person’s freedom to sell himself or herself in slavery. […] Another question to ask is: who exactly are the “others” who are affected? Passive smokers are not the only people who might be harmed. If smokers are made ill by their decision to go on smoking, then the society can either take the view that these victims of self-choice have no claim to public resources (such as the National Health Service or social safety nets), or more leniently (and I believe more reasonably) it could accept that these people still qualify to get social help. If the former, we would live in a monstrously unforgiving society; and happily I do not see Britain or France going that way. If the latter, then the interests of “others” would surely be affected through the sharing of the costs of public services.
Indian economist and philosopher (1933-)
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When we try to determine how justice can be advanced, there is a basic need for public reasoning, involving arguments coming from different quarters and divergent perspectives. An engagement with contrary arguments does not, however, imply that we must expect to be able to settle the conflicting reasons in all cases and arrive at agreed position on all issues. Complete resolution is neither a requirement of a person’s own rationality, nor is it a condition of reasonable social choice, including a reason-based theory of justice.
Central to the Smithian approach is our willingness to see critically what we observe around us. The sense of comfort that is often associated with being content with the world as it is can seriously hamper the pursuit of justice. This understanding goes strongly against a line of thought that was powerfully presented by Friedrich Nietzshe. ‘The Christian resolve to find the world ugly and bad has made the world ugly and bad’, said Nietzshe. I think I can, with some effort, understand what Nietzsche meant, but it is hard for me, even with a lot of effort, to see that Nietzshe’s hypothesis helps us to understand the causation or resilience of the nastiness of the world in which we live. Nor, I must insist (this I do as a thoroughly unreligious person), does it offer any obvious insight into the lives and achievements of Martin Luther King, or Mother Theresa, or Desmond Tutu, who have tried to reduce injustice in the world and have done so with non-negligible success.
I am not persuaded that Hayek got the substantive connections entirely right. He was too captivated by the enabling effects of the market system on human freedoms and tended to downplay - though he never fully ignored - the lack of freedom for some that may result from a complete reliance on the market system, with its exclusions and imperfections, and the social effects of big disparities in the ownership of assets. But it would be hard to deny Hayek's immense contribution to our understanding of the importance of judging institutions by the criterion of freedom.
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Hugely engaging as this longing is for hope and history to rhyme together, the justice of transcendental institutionalism has little room for that engagement. This limitation provides one illustration of the need for a substantial departure in the prevailing theories of justice. That is the subject matter of this book.
Smith distinguishes with great sophistication the different kinds of reasons people have in taking an interest in the lives of others, separating out sympathy, generosity, public spirit and other motivations. Even though he acknowledged the role of mental attitudes and predispositions, he went on to discuss how reasoning, which is at the heart of rationality, must have a big role in preventing us from being – consciously or unconsciously – too self-centred, or thoughtlessly uncaring.
Reasoning is a robust source of hope and confidence in a world darkened by murky deeds – past and present. It is not hard to see why this is so. Even when we find something immediately upsetting, we can question that response and ask whether it is an appropriate reaction and whether we should really be guided by it. Reasoning can be concerned with the right way of viewing and treating other people, other cultures, other claims, and with examining different grounds for respect and tolerance.
That austerity is a counterproductive economic policy in a situation of economic recession can be seen, rightly, as a “Keynesian critique.” Keynes did argue—and persuasively—that to cut public expenditure when an economy has unused productive capacity as well as unemployment owing to a deficiency of effective demand would tend to have the effect of slowing down the economy further and increasing—rather than decreasing—unemployment. Keynes certainly deserves much credit for making that rather basic point clear even to policymakers, irrespective of their politics, and he also provided what I would call a sketch of a theory of explaining how all this can be nicely captured within a general understanding of economic interdependences between different activities... I am certainly supportive of this Keynesian argument, and also of Paul Krugman’s efforts in cogently developing and propagating this important perspective, and in questioning the policy of massive austerity in Europe.
But I would also argue that the unsuitability of the policy of austerity is only partly due to Keynesian reasons. Where we have to go well beyond Keynes is in asking what public expenditure is for—other than for just strengthening effective demand, no matter what its content. As it happens, European resistance to savage cuts in public services and to indiscriminate austerity is not based only, or primarily, on Keynesian reasoning. The resistance is based also on a constructive point about the importance of public services—a perspective that is of great economic as well as political interest in Europe.