Individual preferences about income distributions
Egalitarian Preferences and Envy
Seminar Inequality
SS 2010
Carolin Gärtig
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Introduction
Pareto-efficient income distributions imply no malevolence or
benevolence, they imply egoism and the homo economicus
individual preference function is independent
But aren’t individual preferences also influenced by the welfare of others
and their specific income?
And how could individual preferences be influenced by envy?
Finally, does envy lead to egalitarian preferences?
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Definition
“Envy is pain at the good fortune of others.” (Aristotle)
“Envy aims, at least in terms of one’s wishes, at destroying others’ good
fortune” (Kant)
Envy is the suffering from the relative betterment of others (“rival”)
concerning personal attributes, status or wealth (“good”)
Not necessarily directed at the envied “good” itself but to the fact that
someone else got it
Agreement in science and society that envy is a passive and negative
emotion that people would rather hide than confess (taboo, deadly sin (rel.))
Seen as symptom of the human tendency to evaluate one’s well being
comparatively
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Definition
Envy has aroused controversies in political philosophy
Envy could lead to:
productive reaction: closing gap through emulation
(outdo rival’s advantage)
liberal view
destructive reaction: closing gap through degradation
(undo rival’s advantage)
egalitarian view
Regarding the latter: the “envious preference” here is that neither subject
nor rival has the good
Hypothesis: egalitarian views of justice are motivated by envy
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Envy and Justice – Egalitarian Theory
In egalitarian theory:
Inequalities are bad because they are unjust
Envy is seen as a social phenomenon of an unequal society has to be
reduced through equality
Mass homogeneity is seen more essential for the betterment of society
than individual initiative
By leveling all distinctions, collective peace and unity shall be the result
Basis for socialist, communist theories “fight” of the inferior for an equal
resource distribution
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Envy and Justice – Marx’ point of view
Marx (1844)
“Underdeveloped communism”: envy is a hidden form of greediness
against every private property that appears more wealthy
The envious’ ambition is overall leveling down of private property
“Developed Communism”: no private property only allows public
property
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Envy and Justice – Rawls’ point of view
Rawls (1975)
In the “original position” from which principles of justice are chosen, Rawls
assume the absence of envy
In the second part, envy can occur
Rawls: Envy is harmful - the envious person tends to actions that bring
disadvantages for both sides just to close the gap
Unequal society is to blame for envy – “excusable general envy”
But envy would not pose a threat to his “Theory of Justice” because
liberty and status of equal citizens encourage self-respect
competitive economy will prevent inequalities that raise envy
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Envy and Justice – Liberal Theory
In liberal theory:
Envy cannot be reduced through equality, people will always compare
Not better for the society that neither subject nor rival possesses the good
Envied person will reduce performance to the average to reduce envy
harmful consequences for society (less performance, less innovation)
Egalitarian distribution without regard to individual contribution is unjust
Justice is the adjudication of social goods in proportion to the returns of
each member of the society
Progress demands inequality (and superior minorities) impossible to
develop an economic process, without becoming unequal
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Social Transfers and Envy
Liberal Hypothesis: In modern societies envy expresses in claims for social
justice and political interventionism
Envy is used in politics “envious feeling of inferiority as political tactic”
Example: Progressive Taxation / Wealth Tax: “Dispossession of the superior
fulfill ambition of envious”
Intervention provokes envy in the modern social state
People don’t have to close the gap through own effort but could choose the
destructive reaction (subsidy), depending on what is more promising
destructive consequences do not go back on envy per se but on the
combination with political intervention
(example: USA vs. EU)
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Conclusion
Envy-free society is utopia because:
humans are born with different equipment of given or gained resources
or simply in luck
equal income distribution is impossible
men’s envy is at its most intense where all are almost equal
Political systems that promote egalitarianism regardless of ability,
intelligence, capability, experience are leveling down society in various ways
Envy can have productive consequences in a free market the envious
has to orientate on the welfare of others
Market and competition neutralize envy, emulation is road to social stability
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Thanks for your attention!
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