Distributive Justice: The Right and Wrong of Our Present Distribution of WealthRyan, John A. (John Augustine)
PhilosophyChristian
Distributive Justice: The Right and Wrong of Our Present Distribution of Wealth
Ryan, John A. (John Augustine)
Economic history; Income distribution -- Moral and ethical aspects; Wealth -- Religious aspects
The method of ascertaining specific productivity which has been
described in the last paragraph is thought by Professor Clark to
receive confirmation from the fact that it leads to the same
conclusion as the first and more direct method; namely, that the
specific productivity of labour is expressed in the product of the
marginal labourer. As a matter of fact, this conclusion is yielded by
both methods; for the specific productivity of the first labourer
appeared as eighty units, which was also the specific productivity of
the second labourer, who was the marginal labourer. As we saw in the
second last paragraph, however, the marginal product is not due to
labour alone; hence the verification provided by the second method is
in reality a refutation.
Apparently the majority of economists do not accept Professor Clark's
theory; for of the nine who discussed certain applications of it at
the nineteenth annual meeting of the American Economic Association
only one approved it, three were non-committal, and five expressed
their dissent.[236]
Even if the theory were true its hypothetical character would deprive
it of any practical value. It assumes a régime of perfect competition,
but this assumption is so seldom realised that no rule based upon it
can throw much light on the question of the productivity of present
day labourers.
Even if it were exactly applicable to existing conditions, that is, if
labourers were actually getting their specific products, the theory
would not provide us with a doctrine of just wages. As we have seen in
former chapters, productivity is neither the only nor the highest canon
of justice, whether as regards the comparative claims of capital and
labour, or as regards the claims of different labourers. The contention
that capital ought to command interest because it aids in bringing
forth the product, is neither self evident nor demonstrable by any
process of reasoning. Even if we should concede that the capitalist has
a right to interest by virtue of the productivity of his capital, we
should not therefore conclude that this right is as cogent as the
corresponding right of the labourer. In the former case the productive
agency is not human nor active, but only material and passive; and the
recipient of the product performs no labour as capitalist, but is left
free to get a livelihood by personal activity. The productivity of
labour differs in all these respects, and the difference is ethically
sufficient to justify the claim that the labourer may sometimes have a
right to a part of the specific product of capital. To sum up the
matter in the words of Professor Wicker: "To have proved that the
capitalist gets in interest what his capital produces is not to have
proved that the capitalist gets what he has earned. To have proved that
the landlord gets what his land produces is not to have proved that the
landlord earns his distributive share.... Economics is not ethics;
explanation is not justification."[237]
Public-domain text, read in full here on John Shaqi.
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