Utilitarianism

As I read his Utilitarianism, I want to like John Stuart Mill. He seems like such a clever man, but he is a victim of his Enlightenment Age. Attempting to fabricate order created by science’s encroachment on the absolutes of religion and the shifting sentiments toward monarchies, Mill tries to replace this moral compass with Jeremy Bentham‘s utility.

£1 ≠ £1

The problem is that despite (sort of) dispensing of religious doctrine, Mill was still fettered by the dogma of virtue ethics of dignity and duty. To this, he adds happiness. Not to go full-on Foucault, but these are concepts leveraged, like religion, to maintain power—take an elevated system in a constructed society, and the duty becomes a burden to the bottom, save for pretence of duty and dignity at the top.

I’ve had an issue with the concept of virtue and all of its offspring: duty, justice, and so on. I’ll likely write about this later. I expect that I’ll be reading Mill’s On Liberty next, so stay tuned.

Ignoring my contention that Utilitarianism is baseless, I have two other issues, using economic examples, each related to prospect theory (pdf):

  1. Regressivity: A person with less money values an incremental dollar more than a person with more money.

  2. Loss to gain asymmetry due to risk aversion: A person values losing a dollar more than earning a dollar, ceteris paribus.

Pareto efficiency, a cornerstone of Classical economics, does not take this into account. For this theory, all dollars are created (or perceived to be) equal, so it doesn’t matter whether person A, who earns £10,000 p.a., or person B, who earns £100.000 p.a.,  gets £100, but in the real world, person A would give it a higher value, so a transfer from A to B would be an inferior transaction to a B to A transaction.

This said, person B values the £100 more than having gained the amount, but it is not clear how to reconcile (in order to reach perceived parity) what the fair equilibrium would be, allowing that equality of outcome might not be the desired outcome.

Anarchy, State, and Utopia

I’ve been reading Robert Nozick‘s Anarchy, State, and Utopia because it was recommended by Ian Shapiro. Although I am only about a quarter way through, and he seems to have tried to hit all the angles; unless I missed it, perhaps hits these bits later on.

He thoroughly raises issues and works to resolve them, but, as with Descartes with his Discourse, Nozick seems to exogenously accept certain aspects in an appeal to tradition sort of way. With Descartes, he stripped all belief in the truth of his senses, but then he injects God into the equation from out of nowhere. For Nozick, he just takes property and value as given.

I understand that the Western Enlightenment tradition has a thing for life, liberty, and property—especially Libertarians—, but these are just philosophical notions derived from nowhere. (Wittgenstein, stage left) That he uses utility theory instead of prospect theory as a foundation can be forgiven, but that is shaky ground, too.

And so it goes…