Property-Owning Democracy: Rawls and Beyond features a collection of original essays that represent the first extended treatment of political philosopher John Rawls' idea of a property-owning democracy. Offers new and essential insights into Rawls's idea of "property-owning democracy" Addresses the proposed political and economic institutions and policies which Rawls's theory would require Considers radical alternatives to existing forms of capitalism Provides a major contribution to debates among progressive policymakers and activists about (...) the programmatic direction progressive politics should take in the near future. (shrink)

This chapter contains sections titled: The Indictment Background Institutions for Distributive Justice A Non‐Capitalist Property‐Owning Democracy Economic Democracy ED Versus POD POD Modified References.

This chapter contains sections titled: Introduction The Republicanism of Rawls's Liberalism: An Open Question Property‐Owning Democracy Justice and Stability Tocqueville on the Ills of Democratic Personality The Republican Response Some Objections Conclusion: Lessons for Republicans and Liberals References.

A collection of original essays that represent the first extended treatment of political philosopher John Rawls' idea of a property-owning democracy.

This chapter contains sections titled: Property‐Owning Democracy Before Socialism: The Rise of Commercial Republicanism Property‐Owning Democracy at the Socialist High Tide (i): Progressive Conservative Origins Property‐Owning Democracy at the Socialist High Tide (ii): Liberals and Labour Revisionists Property‐Owning Democracy at the Socialist High Tide (iii): James Meade Property‐Owning Democracy After Socialism? Rawlsian and Neoliberal Lineages References.

Justin Holt argues that the Rawlsian requirements for justice are, contrary to Rawls’ own pronouncements, better met by socialism than ‘property owning democracy’, both of them preferring both to just plain capitalism, even with a welfare state tacked on. I suggest that Rawls’s ‘requirements’ are far less clear than most think, and that the only clarified version prefers the capitalist welfare state.

John Rawls says: “The main problem of distributive justice is the choice of a social system.” Property-owning democracy is the social system that Rawls thought best realized the requirements of his principles of justice. This article discusses Rawls’s conception of property-owning democracy and how it is related to his difference principle. I explain why Rawls thought that welfare-state capitalism could not fulfill his principles: it is mainly because of the connection he perceived between capitalism (...) and utilitarianism. (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...

It is argued that only the embedding of Rawlsian political liberalism within a republican framework secures the content of his view against Cohen's critique of Rawlsian special incentives. That content is fully specified in the form of a property-owning democracy; only this background set of institutions (or one functionally equivalent to it) will secure the stability of Rawls's egalitarian principles. A liberal-republicanism, rather than political liberalism alone, offers deeper grounding for our commitment to a property-owning (...) democracy as a privileged political economy for the expression of our egalitarian ideals. (shrink)

This chapter contains sections titled: From Liberalism to Republican Liberalism Cohen's Critique of Rawls A Liberal Republican Political Economy Liberal and Republican Approaches to Effective Political Agency The Republican Alternative Conclusion References.

John Rawls is arguably the most important political philosopher of the past century. His theory of justice has set the agenda for debate in mainstream political philosophy for the past forty years, and has had an important influence in economics, law, sociology, and other disciplines. However, despite the importance and popularity of Rawls's work, there is no clear picture of what a society that met Rawls's principles of justice would actually look like. This article sets out to explore that question.

The political theory of the property-owning democracy can be seen as a way of overcoming the ideological conflict between individualism and collectivism. Rawls offers the contemporary reference-point for this theory. Rawls contrasted the ideal-type of the property-owning democracy with the ideal-type of a capitalist welfare state. However, the terms of that contrast are not well drawn and raise a number of questions, in particular regarding Rawls’s a priori specification of the welfare state. An inductively (...) derived specification of ideal-typical welfare states suggests that horizontal redistribution, in line with the principle of social savings, is more important than vertical redistribution. Rawls’s preference for a social dividend or negative income tax scheme can be contrasted with the use of social insurance, but the latter has a claim to instantiate Rawlsian ideals better than a social dividend. There is a potential problem with the pre-emption of private savings in the welfare state, but this turns out not to be troublesome empirically or conceptually. The irony of the discussion is that those who have interpreted Rawlsian theory as justifying the welfare state have the better of the argument, despite Rawls’s own views. (shrink)

The distinction drawn by Rawls between the ideas of property-owning democracy and welfare state capitalism parallels his distinction between justice-based ‘liberalisms of freedom’ (including his own conception of justice as fairness) and utilitarian- based ‘liberalisms of happiness’. In this paper I argue that Rawls’s failure to attach the same level of significance to essential socio-economic rights and liberties as he attached to the traditional liberal civil and political rights and liberties gives justice as fairness a quasi-utilitarian character, (...) which is incompatible with the fundamental objective of protecting the highest.-order interests of citizens conceived as free and equal. I argue that in order fully to protect these interests, rights to access to non-human capital and productive resources should be assigned the same level of significance as that assigned to the civil and political rights and liberties, and prioritized over the lower-order rights and benefits regulated by Rawls’s second principle of justice. (shrink)

This chapter contains sections titled: Redistributing Wealth, I: Taxing Large Estates and Incomes Redistributing Wealth, II: The Structure of Universal Assets Individual Assets versus Common Wealth Property‐Owning Democracy as an Incomplete Ideal Appendix: Accumulation of Capital Assets Over a 35‐Year Period References.

This paper explores how a regime recognizable as a Rawlsian property-owning democracy might be enshrined constitutionally in the context of the U.S. Five specific constitutional amendments are proposed: establishing an equal right to education, establishing a guaranteed social minimum, clarifying the legitimacy of regulating corporate political speech for the sake of political equality: establishing an individual right to a share of society’s productive wealth, and assuring communities of significant size the right to remain economically viable over time. (...) The substance and reasoning behind each proposal is discussed in length, and the paper also briefly discusses why a focus on constitutional amendments may be helpful both in clarifying how a property-owning democracy might be realized in practice and in establishing clear goals for social movements motivated by the aim of establishing a more equitable distribution of wealth, power, and opportunity in the United States. (shrink)

The article argues that Rawls’s property-owning democracy should not be understood as a necessary standard of democratic legitimacy. This position contradicts Rawls’s own understanding to some extent, but a rejoinder with elements of political liberalism is possible. He concedes that justice as fairness is a ‘comprehensive liberal doctrine’ and that a well ordered society affirming such a doctrine ‘contradicts reasonable pluralism’. Rawls makes clear that reasonable pluralism in combination with the burdens of judgment lead to rare unanimity (...) in political life and to the necessity of majority and plurality voting procedures. (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)

This paper examines the distinction drawn by Rawls between the ideas of property-owning democracy and welfare state capitalism, and assesses the strength of the support provided by justice as fairness for the implementation of the kinds of policies that distinguish property-owning democracy most sharply from welfare state capitalism. It is argued first that justice as fairness does not provide strong grounds for the implementation of policies designed to improve access to and broaden the distribution (...) of nonhuman capital, arguably the most important institutional feature of property-owning democracy. It is then argued that the idea of “highest-order interests” provides the basis upon which a powerful case for the implementation of this key policy type may be constructed. (shrink)

This chapter contains sections titled: Why a Politics of Property‐Owning Democracy Is Needed Property‐Owning Democracy and Public Opinion Property‐Owning Democracy Versus the Welfare State, Revisited The Viability of Property‐Owning Democracy The Core Issue: The Morality of Large‐Scale Taxation of the Very Rich From Moral Critique to Mobilization: Who Would Be For Property‐Owning Democracy? Conclusion: Going Public With Property‐Owning Democracy References.

What should a free economic system look like? Socialists have long held that a universal human emancipation requires replacing capitalism with socialism. However, it has recently been argued that Property‐Owning Democracy (POD) safeguards freedom while allowing us to keep key features of capitalism. I challenge that claim by showing that the institutional features that make capitalist workplaces unfree are shared with POD. As a result, POD is insufficient for a free economic system. After discussing a number of (...) objections, I conclude that we should look to more democratic alternatives instead. (shrink)

This chapter contains sections titled: Care and Gender in Contemporary Capitalist Societies Supporting Care and Moving Toward Gender Justice The Consequences of Property‐Owning Democracy for Gender and Care Conclusion References.

This paper supports the personal data platform cooperative as a means of bringing about John Rawls’s favoured institutional realisation of a just society, the property-owning democracy. It describes personal data platform cooperatives and applies Rawls’s political philosophy to analyse the institutional forms of a just society in relation to the economic power deriving from aggregating personal data. It argues that a society involving a significant number of personal data platform cooperatives will be more suitable to realising Rawls’s (...) principle of fair equality of opportunity. (shrink)

This chapter contains sections titled: Worker‐Owned Firms Municipal Enterprises Building Community: Neighborhoods and Nonprofits State and National Innovators Integrated Advances and Further Possibilities3 Challenging the Ideology of Unconstrained Wealth Inequality Conclusion References.

In Justice as Fairness, Rawls presents a case for property-owning democracy (POD) which heavily depends on a favourable comparison with welfare state capitalism (WSC). He argues that WSC, but not POD, fails to realise ‘all the main political values expressed by the two principles of justice’. This article argues that Rawls’s case for POD is incomplete. He does not show that POD is superior to other conceivable forms of WSC. In order to present a serious contender, I (...) sketch what I call a realistically utopian welfare state (RUWS) that (a) guarantees the fair equality of political liberties and opportunity and that (b) maximises the situation of the worst.-off via a kind of participation income. The main aim of the article is to give credibility to the claim that RUWS is not obviously worse than POD by Rawlsian standards and therefore deserves a fair hearing in further research. (shrink)

The idea of a 'property-owning democracy' became central to John Rawls's re-evaluation of his theory of justice. This article traces the origins of Rawls's concept of `property-owning democracy' first to the writings of the economist James Meade and then to those of early twentieth-century British conservatives, focusing on the question of how the meaning of democracy was defined and re-defined throughout this history. I argue that Rawls inherited a discursive matrix from the British (...) conservatives in which the notion of 'property-owning democracy' refers to the limits that should be set on democratic practices to make democracy compatible with the needs and interests of property-owners. In addition to tracing the genealogy of the idea of a 'property-owning democracy', the article points toward more recent attempts, partially inspired by Rawls's 'political turn', to re-examine the distribution of property-ownership from the perspective of what is required for viable democratic deliberations. The article ends with an addendum lamenting the fact that when George W. Bush's administration adopted the British ideas and policies associated with 'property-owning democracy' it chose to omit 'democracy' altogether and to describe its initiative as 'ownership society'. (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)

This paper discusses what type of sociological context is appropriate for Rawls’ ‘property-owning democracy’. Following certain suggestions offered by Rawls and in the work of Joshua Cohen, it explores, in particular, the kind of fraternity and social interaction suitable for citizens in Rawlsian society and the role of the state in engineering these bonds. Utilising a normative framework based on Rawls’ discussion of a property-owning democracy and various data sets, the paper argues that bonds (...) of social trust, active participation in trade unions and enrolment in public schools, and the use of state policy to organise a mixture of public, cooperative, and private economic institutions would be suitable for a Rawlsian society to adopt because it appears that these structures are favourably connected to the ends of Rawlsian justice. (shrink)

In this article I show why investment practices matter for a property-owning democracy (POD) and how political philosophers can analyse them. I begin by documenting how investment practices influence income distribution. Empirical research suggests that investments that force corporations to maximise shareholder value, which I refer to as ‘shareholder value investing/ increase income inequality. By contrast, there is evidence that socially responsible investing (SRI) could bring society closer to a POD. Following that., I sketch how financial regulation (...) fosters investment practices and discuss how SRI could be boosted if regulation attempted to influence investment decisions, although many people in the public discourse would see this as exceedingly patronising. Finally, I outline how political philosophers can evaluate financial regulation. I argue that drawing on Hegel or Rawls helps to justify efforts to influence investment decisions and that proponents of a POD should therefore develop and support regulatory ideas which foster SRI. (shrink)

Im this paper I argue that Rawls distinguishes two different ways in which a system can be inconsistent with justice as fairness. The first concerns those systems that are based on principles that simply deny justice as fairness, as in the case of capitalism. The second concerns systems that, while pursuing aims similar to those of justice as fairness, are structured in ways that cause them to work very differently from their intended aims. Following Esping-Andersen’s identification of different “worlds” of (...) welfare states, I will show which specific kind of welfare state falls under Rawls’s first argument. (shrink)

Christian Schemmel makes a strong case that John Rawls underplayed the capacity of robust ‘universal welfare states’ to realise in practice liberal egalitarian principles of justice, and that improvements upon the best existing welfare states will more plausibly take the form of movement in the direction of democratic socialism rather than the more individualist regime that Rawls called a property-owning democracy. Nonetheless, I do not believe it follows from these arguments that highly unjust, deeply flawed welfare states (...) such as the United States should first focus on developing a universal welfare state and leave thoughts of property-owning democracy to the side for the foreseeable future. (shrink)

Journal of Political Philosophy, EarlyView.

The dramatic events of the crisis have reignited debates on the independence of central banks and the scope of their mandates. In this article, I contribute to the normative understanding of these developments by discussing John Rawls’s position in debates of the 1950s and 1960s on the independence of the US Federal Reserve. Rawls’s account of the central bank in his property-owning democracy, Democratic Central Banking, assigns authority over monetary policy directly to the government and prioritizes low (...) unemployment over price stability. I contrast DCB with Central Bank Independence, which requires that the central bank is independent of the government and pursues low inflation. I evaluate DCB by asking whether justice as fairness requires democratic control of the central bank and argue that it does not. Instead, so I argue, the choice between DCB and CBI should be justified in terms of the difference principle. By reflecting on central banking in a property-owning democracy, I cast new light on the Rawlsian realistic utopia of a just capitalist society, while also investigating democratic objections to today’s independent central banks. (shrink)