The distributive justice literature has recently formulated several tax proposals, with limitarians or property-owning democrats proposing new or higher taxes on wealth or capital income intended to decrease the growing wealth gap. This essay joins this debate on inequality and redistributive taxation through the lens of the “benefit principle for public policy.” This principle says that specific rules and institutions are acceptable to the extent that they create benefits for all individuals in society, or at least don’t make anyone worse (...) off. This benefit principle opposes wealth accumulation to the extent that wealth was generated through rent-seeking—that is, income unrelated to economic productivity, which is not embedded in mutually beneficial exchanges. I maintain, however, that ruling out rent-seeking requires not ex post taxation, but primarily a more “predistributive corrective policy,” that is, reconfiguration of market institutions to prevent wealth accumulation through rent-seeking in the first place. The alternative response is, thus, not to tackle inequality as such but to reform the market to promote the occurrence of mutually beneficial exchange. (shrink)

The term ‘predistribution’ draws attention to the need for policies and institutions that are designed to improve the position of the least advantaged members of society by generating a fairer distribution of opportunities and benefits from the operation of the free market system, with less reliance on redistributive tax-and-transfer mechanisms. Although the idea of progressive predistribution has only recently begun to attract the attention of politicians and commentators in the mainstream media, there is an older and more philosophically (...) grounded predistributive approach that goes back to the idea of the property-owning democracy proposed by Economist James Meade and further developed by liberal political philosopher John Rawls. In this article, I argue that neither the Meadeian/Rawlsian POD model, nor the more recent analysis of the idea of progressive predistribution, provide a clear and convincing account of the distinction between predistributive and redistributive mechanisms. I then argue that a more promising account of this distinction is provided by the idea of the socialization of economic rent through taxation of the rental value of land, and that there are good reasons to think that a shift in the burden of taxation away from production and employment and on to the rental value of land might turn out to be both more genuinely predistributive and more effectively progressive than other possible predistributive mechanisms that have recently been proposed, most notably the aggressive taxation of private inheritances as a means to broaden the distribution of privately owned capital and productive property. (shrink)

The idea of predistribution has the potential to offer a valuable and distinctive approach to political philosophers, political scientists, and economists, in thinking about social justice and the creation of more egalitarian economies. It is also an idea that has drawn the interest of politicians of the left and centre-left, promising an alternative to traditional forms of social democracy. But the idea of predistribution is not well understood, and stands in need of elucidation. This article explores ways of (...) drawing the conceptual and normative distinction between predistribution and redistribution, examining those general categories when considering the roles of public services and fiscal transfers, and looking at the ways in which government policies can empower and disempower different individuals and groups within the economy. This article argues that the most initially plausible and common-sensical ways of drawing the distinction between predistributive and redistributive public policies collapse when put under analytical pressure. It concludes that the distinction between predistribution and redistribution is best seen in terms of the aims or effects of policies rather than a deeper division of policy types, and argues that, once seen in those terms, predistribution is a central concern of social justice. (shrink)

If pursued with serious intent, Pre-distribution has the capacity to create an exciting and radical new agenda for social democracy. But the politics of Pre-distribution cannot be innocuous or uncontroversial. -/- In its more radical forms, predistribution is a potentially radical and inspiring project for social democrats who have come to see the limitations of the old ways of doing things. It’s a project that promises a strategy to deliver abundantly on values of social justice, economic freedom, and equality (...) of opportunity. But it’s a project that involves going head-to-head with entrenched interests, breaking up existing concentrations of wealth and economic power. The politics of Pre-distribution, if taken seriously, simply cannot be a politics without enemies. Labour must decide whether its engagement with pre-distribution is to be limited to tinkering at the edges of neoliberalism, or whether it will instead fully embrace the opportunities of the present moment, decide to be radical, and realise the full promise of the politics of predistribution. -/- . (shrink)

The first book length study of property-owning democracy, Republic of Equals argues that a society in which capital is universally accessible to all citizens is uniquely placed to meet the demands of justice. Arguing from a basis in liberal-republican principles, this expanded conception of the economic structure of society contextualizes the market to make its transactions fair. The author shows that a property-owning democracy structures economic incentives such that the domination of one agent by another in the market is structurally (...) impossible. The result is a renovated form of capitalism in which the free market is no longer a threat to social democratic values, but is potentially convergent with them. It is argued that a property-owning democracy has advantages that give it priority over rival forms of social organization such as welfare state capitalism and market socialist institutions. The book also addresses the currently high levels of inequality in the societies of the developed West to suggest a range of policies that target the "New Inequality" of our times. For this reason, the work engages not only with political philosophers such as John Rawls, Philip Pettit and John Tomasi, but also with the work of economists and historians such as Anthony B. Atkinson, François Bourguignon, Jacob S. Hacker, Lane Kenworthy, and Thomas Piketty. (shrink)

The first book-length study of property-owning democracy, Republic of Equals, argues that a society in which capital is universally accessible to all citizens is uniquely placed to meet the demands of justice. Arguing from a basis in liberal-republican principles, this expanded conception of the economic structure of society contextualizes the market to make its transactions fair. It shows that a property-owning democracy structures economic incentives such that the domination of one agent by another in the market is structurally impossible. The (...) result is a renovated form of capitalism in which the free market is no longer a threat to social democratic values but is potentially convergent with them. It is argued that a property-owning democracy has advantages that give it priority over rival forms of social organization such as welfare-state capitalism and market socialist institutions. The book also addresses the currently high levels of inequality in the societies of the developed West to suggest a range of policies that target the “New Inequality” of the twenty-first century. For this reason, the work engages not only with political philosophers such as John Rawls, Philip Pettit, and John Tomasi but also with the work of economists and historians such as Anthony B. Atkinson, François Bourguignon, Jacob S. Hacker, Lane Kenworthy, and Thomas Piketty. (shrink)

If solutions to the problem of inequality are to be as radical as reality now demands, what is instead required is a reimagining of what would be involved comprehensively to tame capitalism through democratic means. This will involve much further development of the kind of plurality of institutional and policy proposals sketched by Meade, and will involve both the private and public – individual and collective – forms of capital predistribution that Meade advocated. Piketty, like Meade, sees the need (...) for both redistribution and predistribution, and both see that the institutional means necessary to create a more equal society will involve pursuing a plurality of parallel paths. It is closely in keeping with the spirit of Piketty’s Capital that the political and intellectual agenda ahead will be one that economics on its own cannot hope to encompass. It’s a vital agenda, with high stakes, and presents challenges to both academic researchers and political activists. On the success of this endeavour depends nothing less than the prospects for legitimate continuation of our economic system. (shrink)

The distinction between redistribution and predistribution is now embraced by many political philosophers, like Jacob Hacker or Martin O’Neill. This distinction, we could think, is particularly important for the question of how we react to crises, like the current coronavirus pandemic. If the policies take the form of taxes and transfers, like cash-flow assistance, it is redistribution, one could argue. If the policies are meant to alter pretax incomes, as policies changing the conditions for bankruptcy are, it is (...) class='Hi'>predistribution. This paper shows why that is not so. Re- and predistribution are only techniques of presentation. They are meant to put the emphasis on different ways we can depict the consequences of policies. Both the “pre-” of predistribution and the “re-” of redistribution are misnomers. This paper argues that we cannot establish a strong distinction between policies that are re- and those that are predistributive, as the case of the basic income will show. Given that classical liberals endorsed egalitarian policies, moreover, the idea of predistribution cannot be used by progressives who want to differentiate their social justice platforms from the classical liberal program. (shrink)

Much of the recent discussion in progressive circles [e.g., Stiglitz; Galbraith; Piketty] has focused the obscene mal-distribution of wealth and income as if that was "the" problem in our economic system. And the proposed redistributive reforms have all stuck to that framing of the question. To put the question in historical perspective, one might note that there was a similar, if not more extreme, mal-distribution of wealth, income, and political power in the Antebellum system of slavery. Yet, it should be (...) obvious to modern eyes that redistributions in favor of the slaves, while leaving the institution of owning workers intact, would not address the root of the problem. The system of slavery was eventually abolished in favor of the system we have today which differs in two important respects: the workers are only rented, hired, or employed ; and the rental relationship between employer and employee is voluntary. Today, the root of the problem is the whole institution for the voluntary renting of human beings, the employment system itself, not the terms of the contract or the accumulated consequences in the form of the mal-distribution of income and wealth. (shrink)

There are three distinct forces that conspire to produce a great deal of economic misery. We can refer to them, for convenience, as misfortune, unfairness, and improvidence. Political philosophers have often shown an interest in one or another of these, but seldom all three. Furthermore, those who do acknowledge all three have often felt driven to collapse them into one root cause of inequality. My goal in this essay will be to argue that the three are independent of one another, (...) but more importantly, that they each require distinct remedies. This is important for egalitarians because it defeats any attempt to develop a “one-size-fits-all” policy aimed at creating a more equal society. This analysis helps us to understand several of the tensions that arise in our attempts to combat inequality that are often obscured by an overemphasis on the power of redistributive taxation as well as generalized inattention to the way that successful welfare states achieve meaningful progress in promoting greater equality. (shrink)

Alan Thomas’ Republic of Equals: Predistribution and Property-Owning Democracy sets itself the ambitious task of synthesising neo-republican political theory and Rawlsian justice as fairness. It is...

Limitarianism holds that there is an upper limit to how many resources, such as wealth and income, people can permissibly have. In this article, I examine the conceptual structure of limitarianism. I focus on the upper limit and the idea that resources above the limit are ‘excess resources’. I distinguish two possible limitarian views about such resources: (i) that excess resources have zero moral value for the holder; and (ii) that excess resources do have moral value for the holder but (...) that their claim to such resources is outweighed by other normative concerns. Moreover, I argue that, depending on the values limitarianism seeks to promote, limitarians should care about the number of people with excess resources or the total amount of excess resources (or both), that they can adopt redistributive measures and/or predistributive measures, and that some versions of limitarianism should take into account the distribution of risk among those above the riches line. (shrink)

Thomas Piketty’s Capital and Ideology constitutes a landmark achievement in furthering our understanding of the history of inequality, and presents valuable proposals for constructing a future economic system that would allow us to transcend and move beyond contemporary forms of capitalism. This article discusses Piketty’s conceptions of ideology, property, and ‘inequality regimes’, and analyses his approach to social justice and its relation to the work of John Rawls. I examine how Piketty’s proposals for ‘participatory socialism’ would function not only to (...) redistribute income and wealth, but also to disperse economic power within society, and I discuss the complementary roles of redistribution and predistribution in his proposals, and Piketty’s place in a tradition of egalitarian political economy associated with James Meade and Anthony Atkinson. Having elaborated on Piketty’s account of the relationship between economic policy and ideational change, and his important idea of the ‘desacralization’ of private property, I develop ‘seven theses’ on his proposals for participatory socialism, examining areas in which his approach could be enhanced or extended, so as to create a viable twenty-first century version of democratic socialism. (shrink)

Este artículo analiza en cuatro tiempos el potencial del acceso incondicional a recursos en la conformación de relaciones productivas libres. En primer lugar, defiende una noción de democracia que exige la presencia de recursos incondicionalmente predistribuidos. En segundo lugar, explora el vínculo entre predistribución y poder de negociación. En tercer lugar, presenta el derecho a la existencia como condición para una cooperación social efectiva que merezca la pena ser cuidada. En cuarto lugar, discute el papel de la renta básica en (...) procesos de nacionalización de la vida económica entendidos como expresión de la voluntad democrática de la ciudadanía. This article analyses in four stages the potential of unconditional access to resources in the conformation of free productive relations. Firstly, it defends a notion of democracy requiring the presence of unconditionally predistributed resources. Secondly, it explores the link between predistribution and bargaining power. Thirdly, it presents the right to existence as a condition for an effective social cooperation worth taking care of. Fourthly, it discusses the role of basic income in processes of nationalisation of economic life understood as the expression of the democratic will of citizenry. (shrink)

This paper considers an argument that justice as fairness requires liberal socialism as opposed to a property-owning democracy. It analyses the arguments for departing from Rawls’s principled agnosticism over the choice between liberal market socialism and property owning democracy. It questions the extension of Rawls’s fair value guarantee for the political liberties to all liberty and suggests an alternative interpretation of the kind of predistributive egalitarianism represented by a property-owning democracy.