“Several implications follow from Hayek's insights into the nature of capitalism.(a) The claim "I deserve my pretax income" is not generally true. Nor should the basic organization of property rules be based on considerations of moral desert. Hence, claims about desert have no standing in deciding whether taxation for the purpose of funding social insurance is just.
(b) The claim that people rocked by the viccisitudes of the market, or poor people generally, are getting what they deserve is also not generally true. To moralize people's misfortunes in this way is both ignorant and mean. Capitalism continuously and randomly pulls the rug out from under even the most prudent and diligent people. It is in principle impossible for even the most prudent to forsee all the market turns that could undo them. (If it were possible, then efficient socialist planning would be possible, too. But it isn't.)
(c) Capitalist markets are highly dynamic and volatile. This means that at any one time, lots of people are going under. Often, the consequences of this would be catastrophic, absent concerted intervention to avert the outcomes generated by markets. For example, the economist Amartya Sen has documented that sudden shifts in people's incomes (which are often due to market volatility), and not absolute food shortages, are a principal cause of famine.
(d) The volatility of capitalist markets creates a profound and urgent need for insurance, over and above the insurance needs people would have under more stable (but stagnant) economic systems. This need is increased also by the fact that capitalism inspires a love of personal independence, and hence brings about the smaller ("nuclear") family forms that alone are compatible with it. We no longer belong to vast tribes and clans. This sharply reduces the ability of individuals under capitalism to pool risks within families, and limits the claims they can effectively make on nonhousehold (extended) family members for assistance. To avoid or at least ameliorate disaster and disruption, people need to pool the risks of capitalism.”

— Elizabeth S. Anderson

How Not to Complain About Taxes (III): "I deserve my pretax income" http://left2right.typepad.com/main/2005/01/how_not_to_comp_1.html (January 26, 2005)

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Elizabeth S. Anderson 4

professor of philosophy and womens' studies 1959

Elizabeth S. Anderson (1959) professor of philosophy and womens' studies

How Not to Complain About Taxes (III): "I deserve my pretax income" http://left2right.typepad.com/main/2005/01/how_not_to_comp_1.html (January 26, 2005)

“If free market prices don't give people what they morally deserve, should we try to regulate factor prices so that they do track producers' moral deserts? Hayek offered two compelling arguments against this proposal. First, if you fix prices on a backward-looking standard, they will no longer be able to perform their informational function. Producers will produce for what was demanded last quarter, even if it isn't demanded today. This creates enormous waste and generates huge opportunity costs. We'd be much poorer in an economy that worked like this. […] Hayek was right. It might sound like a compelling idea, to make sure that people receive the income they morally deserve. But orienting the economy around this goal, assuming it is achievable at all (and there are principled doubts about that), would doom us to poverty and serfdom. It would abolish capitalism, along with its chief virtues. It isn't worth the draconian costs.”

Elizabeth S. Anderson (1959) professor of philosophy and womens' studies

How Not to Complain About Taxes (III): "I deserve my pretax income" http://left2right.typepad.com/main/2005/01/how_not_to_comp_1.html (January 26, 2005)

“Islam prescribes the bases of social justice. It insures that the poor have claims on the possessions of the rich, and it lays down a just policy for government and finance. It does not need to numb people's feelings and does not call on people to abandon their rights on earth and to expect them only in the Kingdom of Heaven.”

Sayyid Qutb (1906–1966) Egyptian author, educator, Islamic theorist, poet, and politician

Sayyid Qutb and Islamic Activism: A Translation and Critical Analysis of Social Justice in Islam (1996), p. 16

“Let's consider first Hayek's claim that prices in free market capitalism do not give people what they morally deserve. Hayek's deepest economic insight was that the basic function of free market prices is informational. Free market prices send signals to producers as to where their products are most in demand (and to consumers as to the opportunity costs of their options). They reflect the sum total of the inherently dispersed information about the supply and demand of millions of distinct individuals for each product. Free market prices give us our only access to this information, and then only in aggregate form. This is why centralized economic planning is doomed to failure: there is no way to collect individualized supply and demand information in a single mind or planning agency, to use as a basis for setting prices. Free markets alone can effectively respond to this information.
It's a short step from this core insight about prices to their failure to track any coherent notion of moral desert. Claims of desert are essentially backward-looking. They aim to reward people for virtuous conduct that they undertook in the past. Free market prices are essentially forward-looking. Current prices send signals to producers as to where the demand is now, not where the demand was when individual producers decided on their production plans. Capitalism is an inherently dynamic economic system. It responds rapidly to changes in tastes, to new sources of supply, to new substitutes for old products. This is one of capitalism's great virtues. But this responsiveness leads to volatile prices. Consequently, capitalism is constantly pulling the rug out from underneath even the most thoughtful, foresightful, and prudent production plans of individual agents. However virtuous they were, by whatever standard of virtue one can name, individuals cannot count on their virtue being rewarded in the free market. For the function of the market isn't to reward people for past good behavior. It's to direct them toward producing for current demand, regardless of what they did in the past.
This isn't to say that virtue makes no difference to what returns one may expect for one's productive contributions. The exercise of prudence and foresight in laying out one's production and investment plans, and diligence in carrying them out, generally improves one's odds. But sheer dumb luck is also, ineradicably, a prominent factor determining free market returns. And nobody deserves what comes to them by sheer luck.”

Elizabeth S. Anderson (1959) professor of philosophy and womens' studies

How Not to Complain About Taxes (III): "I deserve my pretax income" http://left2right.typepad.com/main/2005/01/how_not_to_comp_1.html (January 26, 2005)

“Our moral and economic system is based on individual responsibility. It’s based on the idea that people have to live with the consequences of their decisions. This makes them more careful deciders. This means that society tends toward justice — people get what they deserve as much as possible.”

David Brooks (1961) American journalist, commentator and editor

David Brooks. "Money for Idiots," http://archive.li/EzXTi The New York Times, 19 February 2009.
2000s

“People who claim they are motivated by the Purpose end up behaving differently—and generally better—than people who serve other masters.”
“So it is like believing in God.”

Neal Stephenson book Seveneves

“Maybe yes. But without the theology, the scripture, the pigheaded certainty.”
Epilogue (p. 860)
Seveneves (2015), Part Three

“If it makes sense to transfer income from rich to poor people within a generation, why shouldn't we transfer income from rich to poor generations?”

Harvey S. Rosen (1949) American economist

Source: Public Finance - International Edition - Sixth Edition, Chapter 18, Deficit Finance, p. 435

“I could go on, but the point is clear: religions make explicit claims about reality—about what exists and happens in the universe. These claims involve the existence of gods, the number of such gods (polytheism or monotheism), their character and behavior (usually loving and beneficent, but, in the case of Hindu and ancient Greek gods, sometimes mischievous or malevolent), how they interact with the world, whether or not there are souls or life after death, and, above all, how the deities wish us to behave—their moral code.
These are empirical claims, and although some may be hard to test, they must, like all claims about reality, be defended with a combination of evidence and reason. If we find no credible evidence, no good reasons to believe, then those claims should be disregarded, just as most of us ignore claims about ESP, astrology, and alien abduction. After all, beliefs important enough to affect you for eternity surely deserve the closest scrutiny.”

Jerry Coyne book Faith vs. Fact: Why Science and Religion are Incompatible

Source: Faith vs. Fact (2015), p. 23

“We face the dilemma… that if everyone gets his deserts, some may be driven from the table: and if everyone comes to the table, some may not get their deserts. In practice, this seems to be resolved by the establishment of a social minimum as reflected for instance, in the poor law, in social security and various welfare sevices. The principle of desert come into play above this social minimun. That is to say, society lays a modest table at which all can sup and a high table at which the deserving can feast”

Kenneth E. Boulding (1910–1993) British-American economist

Boulding (1962) "Social Justice in Social Dynamics", in: R.B. Brandt, ed. Social Justice. Englewood Cliffs, New Jersey: Prentice Hall. p. 83 as cited in: Toril Aalberg (2003) Achieving Justice: Comparative Public Opinion on Income Distribution. p. 33
1960s

“The claim is that educating moral sensibility through imagination has a general tendency, not a universal effect.”

A. C. Grayling (1949) English philosopher

Source: Life, Sex, and Ideas: The Good Life Without God (2002), Chapter 3, “Emancipation and Ethics” (p. 14)

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