Kim- Blog Post 4

 I personally found Rawls on the difference principle very convincing, and reading section 13 in A Theory of Justice felt like a 'eureka' moment. In this section, Rawls makes an argument on how social order should be established. He claims that the "higher expectations of those better situated are just if and only if" the betterment of those more well off is to the "advantage of those less fortunate."(pg. 65)


The difference principle stands in stark contrast to pure utilitarianism. From a utilitarian point of view, the best distribution is achieved at Pareto efficiency: the point at which there can not be a better position economically. However, utilitarianism allows for "larger inequalities."(pg. 67) The difference principle in contrast states that inequality is justifiable "only if the difference in expectation is to the advantage" of people who are less off. (pg 88). He gives two cases when applying the difference principle. The first case is one in which the well-being of the unskilled worker is maximized, meaning that nothing can be done to "improve the situation of those worst off." (pg. 68) The second case occurs when decreasing the well-being of those better off would result in decreasing the well-being of the "least advantaged." (pg. 68) As long as we are maximizing "the expectations of most disadvantaged," the difference principle allows for inequalities. (pg 70)


I thought that this was a very interesting argument that currently reflects the mindset of a lot of current economic policymakers. One of the most notable is the quantitative easing policies enacted by the Federal Reserve after the 2008 financial crisis and most recently during Covid-19. Both situations seem to apply to case 2 in which inequalities have increased excessively but the decrease in expectations of those better off would have probably had catastrophic results on the representative unskilled worker. Yet he claims "how unjust an arrangement is depends on how excessive the higher expectations are." The inequalities present today seem excessive, but they seem necessary as well. I am curious to know if the current situation reflects "higher expectations of those better situated" as just. (pg. 65)


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