Economic inequality and the long-term future
Andreas T. Schmidt (University of Groningen) and Daan Juijn (CE Delft)
GPI Working Paper No. 4-2021, published in Politics, Philosophy & Economics
Why, if at all, should we object to economic inequality? Some central arguments – the argument from decreasing marginal utility for example – invoke instrumental reasons and object to inequality because of its effects. Such instrumental arguments, however, often concern only the static effects of inequality and neglect its intertemporal consequences. In this article, we address this striking gap and investigate income inequality’s intertemporal consequences, including its potential effects on humanity’s (very) long-term future. Following recent arguments around future generations and so-called longtermism, those effects might arguably matter more than inequality’s short-term consequences. We assess whether we have instrumental reason to reduce economic inequality based on its intertemporal effects in the short, medium and the very long term. We find a good short and medium-term instrumental case for lower economic inequality. We then argue, somewhat speculatively, that we have instrumental reasons for inequality reduction from a longtermist perspective too, because greater inequality could increase existential risk. We thus have instrumental reasons for reducing inequality, regardless of which time-horizon we take. We then argue that from most consequentialist perspectives, this pro tanto reason also gives us all-things-considered reason. And even across most non-consequentialist views in philosophy, this argument gives us either an all-things-considered or at least weighty pro tanto reason against inequality.
Other working papers
Critical-set views, biographical identity, and the long term – Elliott Thornley (Global Priorities Institute, University of Oxford)
Critical-set views avoid the Repugnant Conclusion by subtracting some constant from the welfare score of each life in a population. These views are thus sensitive to facts about biographical identity: identity between lives. In this paper, I argue that questions of biographical identity give us reason to reject critical-set views and embrace the total view. I end with a practical implication. If we shift our credences towards the total view, we should also shift our efforts towards ensuring that humanity survives for the long term.
Tiny probabilities and the value of the far future – Petra Kosonen (Population Wellbeing Initiative, University of Texas at Austin)
Morally speaking, what matters the most is the far future – at least according to Longtermism. The reason why the far future is of utmost importance is that our acts’ expected influence on the value of the world is mainly determined by their consequences in the far future. The case for Longtermism is straightforward: Given the enormous number of people who might exist in the far future, even a tiny probability of affecting how the far future goes outweighs the importance of our acts’ consequences…
Quadratic Funding with Incomplete Information – Luis M. V. Freitas (Global Priorities Institute, University of Oxford) and Wilfredo L. Maldonado (University of Sao Paulo)
Quadratic funding is a public good provision mechanism that satisfies desirable theoretical properties, such as efficiency under complete information, and has been gaining popularity in practical applications. We evaluate this mechanism in a setting of incomplete information regarding individual preferences, and show that this result only holds under knife-edge conditions. We also estimate the inefficiency of the mechanism in a variety of settings and show, in particular, that inefficiency increases…