inequality

The Panama Papers: How much financial privacy should the super rich be allowed to enjoy?

The Panama Papers comprise a leak of 11.5 million files from Mossack Fonseca, the world’s fourth biggest offshore law firm. The leak has tainted the reputations of many celebrities, and some public officials have been forced to resign, including Icelandic Prime Minister Sigmundur Davíð Gunnlaugsoon, and Spanish Industry Minister José Manuel Soria.

Ramón Fonseca, Director of Mossack Fonseca, complained that his firm was the victim of “an international campaign against privacy.” At a time where privacy does seem to be under attack on all fronts, it is relevant to ask whether the super rich ought to be able to enjoy financial privacy with respect to their offshore accounts. Continue reading

A jobless world—dystopia or utopia?

There is no telling what machines might be able to do in the not very distant future. It is humbling to realise how wrong we have been in the past at predicting the limits of machine capabilities.

We once thought that it would never be possible for a computer to beat a world champion in chess, a game that was thought to be the expression of the quintessence of human intelligence. We were proven wrong in 1997, when Deep Blue beat Garry Kasparov. Once we came to terms with the idea that computers might be able to beat us at any intellectual game (including Jeopardy!, and more recently, Go), we thought that surely they would be unable to engage in activities where we typically need to use common sense and coordination to physically respond to disordered conditions, as when we drive. Driverless cars are now a reality, with Google trying to commercialise them by 2020.

Machines assist doctors in exploring treatment options, they score tests, plant and pick crops, trade stocks, store and retrieve our documents, process information, and play a crucial role in the manufacturing of almost every product we buy.

As machines become more capable, there are more incentives to replace human workers with computers and robots. Computers do not ask for a decent wage, they do not need rest or sleep, they do not need health benefits, they do not complain about how their superiors treat them, and they do not steal or laze away.

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Liberalism and inequality

by Joao Fabiano

Why inequality matters

Philosophers who argue that we should care about inequality often have some variation of a prioritarian view. For them, well-being matters more for those who are worse off, and we should prioritise improving their lives over the lives of others. Several others believe we should care about inequality because it is inherently bad that one person is worse off than another through no fault of her own – some add the requirement both persons should be equally deserving. Either way, few philosophers would argue that we should worsen the better off, or worsen the average, while keeping the worse off just as badly off, only to narrow the inequality gap. Hence, when it comes to economic inequality we should prefer to make the poor better off by making everyone richer instead of making everyone, on average or sum, poorer. Moreover, in most views it is reasonable to care more about inequality at the bottom and less about inequality at the top. We should prefer to reduce inequality by making the worse off richer instead of closing the gap between those who are already better off. I believe a closer inspection at how these equalitarian/prioritarian preferences translate into economic concerns can lead one to reject a few common assumptions.

It is often assumed that the liberal economic model, when compared to strong welfare models, is detrimental to human economic equality. Reducing poverty, equalitarianism and wealth redistribution are, after all, one of the chief principles of the welfare State. The widening of the gap between the top and the bottom is often cited as a concern in liberal States. I wish to argue that out of the various inequality statistics available, if we look at the ones that seem to be more relevant for equalitarian ethics, then strong welfare States fare worse than economically liberal States[1]. For that, I will focus on a comparison between the US and European welfare States’ levels of inequality. Continue reading

Things look really good…if all you care about is money

Are things really getting better? Well, the answer is a resounding ‘yes’ if you’re a monetary consequentialist (i.e., think all that matters is maximizing the amount of monetary resources in the world).  A group of 21 economists plus one Bjørn Lomborg have a new book coming out soon that will survey 10 pressing global problems such as health, air pollution and gender equality in the world from 1900 to 2050.  According to Lomborg’s précis, they have found that on most of the dimensions, things are improving (only biodiversity is identified as having gotten worse), and the positive trends are expected to largely continue.  This will come as some relief to those bemoaning recent political, environmental and humanitarian crises.  But don’t break out the champagne just yet – their analysis evidently relies on a crude GDP-centric measurement tool that obscures a number of crucial issues.  Continue reading

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