Abstract
Economists since Pareto have sought to demonstrate that governmental redistribution to assist the poor increases overall welfare in society. This paper addresses the general issue of redistribution but focuses on two recent efforts to justify redistribution in the context of constitutional political economy. It is argued below that income insurance and other proposed rationale for redistribution overlook or minimize information and incentive problems endemic in all governmental programs to assist the poor. Two reasons for opposing legislated redistribution are discussed—the first rooted in pragmatic considerations, the other based on principle. The conclusions are twofold: (1) purported justifications for redistributive policies are inconsistent with methodological individualism, and (2) it is problematic as to whether imposing such an obligation on the public-at-large even at the constitutional level will improve the welfare of the poor and the non-poor.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Ashcraft, R. (1992) “Liberalism and the Problem of Poverty.”Critical Review 6: 493–516.
Bastiat, F. (1964)The Law. Irvington-On-Hudson, N.Y.: The Foundation for Economic Education, Inc.
Bovard, J. (1983) “Feeding Everybody: How Federal Food Programs Grew and Grew.”Policy Review 26: 42–51.
Brozen, Y. (1966) “Welfare Without the Welfare State.”The Freeman (December): 40–52.
Buchanan, J.M. (1975) “The Samaritan's Dilemma.” In: Phelps, E. (ed)Altruism, Morality, and Economic Theory. 71–85. New York: Russell Sage.
de Jouvenal, B. (1952)The Ethics of Redistribution. Introduction to 1990 reprint by John Gray. Indianapolis: Liberty Press.
Economic Report of the President (1993) Washington, D.C.: U.S. Government Printing Office.
Friedman, J. (1992) “Postlibertarianism is Not Libertarianism: Rejoinder to Nove.”Critical Review 6: 605–09.
Gwartney, J.D., and Wagner, R.E. (1988) “Public Choice and the Constitution: A Madisonian Perspective.” In: Gwartney, J.D., and Wagner, R.E. (eds)Public Choice and Constitutional Economics. Greenwich, Connecticut: JAI Press Inc.
Hayek, F.A. (1979)Law, Legislation, and Liberty, Vol. 3: The Political Order of a Free People. Chicago: The University of Chicago Press.
Hayek, F.A. (1976)Law, Legislation, and Liberty, Vol. 2: The Mirage of Social Justice. Chicago: The University of Chicago Press.
Hazlitt, H. (1973)The Conquest of Poverty. New Rochelle, N.Y.: Arlington House.
Heyne, P. (1994)The Economic Way of Thinking. 7th ed. N.Y.: Macmillan Publishing Company.
Hochman, H., and Rodgers, J.D. (1969) “Pareto Optimal Redistribution.”American Economic Review 59: 542–57.
Kliemt, H. (1993) “On Justifying a Minimum Welfare State.”Constitutional Political Economy 4 (2): 159–72.
Lee, D.R. (1991) “The Politics of Poverty and the Poverty of Politics.” In: Doti, J.L., and Lee, D.R. (eds)The Market Economy: A Reader, 262–69. Los Angeles, California: Roxbury Publishing Company.
Lee, D.R., and McKenzie, R.B. (1988) “Helping the Poor Through Governmental Poverty Programs: The Triumph of Rhetoric Over Reality.” In: Gwartney, J.D., and Wagner, R.E. (eds)Public Choice and Constitutional Economics. Greenwich, Connecticut: JAI Press Inc.
Lee, D.R., and McKenzie, R.B. (1987)Regulating Government: The Positive-Sum Solution. Lexington, MA: D.C. Heath and Co.
Murray, C. (1984)Losing Ground. N.Y.: Basic Books, Inc.
Nozick, R.N. (1974)Anarchy, State, and Utopia. New York: Basic Books, Inc.
Pasour, E.C., Jr. (1990)Agriculture and the State: Market Processes and Bureaucracy. New York: Holmes and Meier.
Pasour, E.C., Jr. (1981) “Pareto Optimality as a Guide to Income Redistribution.”Public Choice 36: 75–87.
Pasour, E.C., Jr. (1991) “The Samaritan's Dilemma and the Welfare State.”The Freeman 41: 208–11.
Pigou, A.C. (1962)The Economics of Welfare. 4th ed. New York: St. Martin's Press.
Plattner, M.F. (1979) “The Welfare State v. the Redistributive Society.”The Public Interest (Spring): 28–48.
Robbins, L. (1935)On the Nature and Significance of Economic Science. London: Mcmillan.
Rothbard, M.N. (1978)For a New Liberty. Rev. ed. New York: Collier Books.
Schansberg, D.E. (1993) “Review ofThe Tragedy of American Compassion by Marvin Olasky.Public Choice 77: 684–86.
Schumpeter, J.A. (1954)History of Economic Analysis. N.Y.: Oxford University Press.
Thomson, D. (1992) “Generations, Justice, and the Future of Collective Action.” In: Laslett, P., and Fishkin, J.S. (eds)Justice Between Age Groups and Generations. New Haven: Yale University Press.
Wagner, R.E. (1993)Parchment, Guns and Constitutional Order. Brookfield, Vermont: Edward Elgar Publishing Co.
Wagner, R.E. (1989)To Promote the General Welfare: Market Processes vs. Political Transfers. San Francisco, California: Pacific Research Institute for Public Policy.
Wagner, R.E. (1986) “The Welfare State, Capital Formation, and Tax-Transfer Policies.” In: Lee, D.R. (ed)Taxation and the Deficit Economy. San Francisco, California: Pacific Research Institute for Public Policy.
Wessels, J.H. (1993) “Redistribution From a Constitutional Perspective.”Constitutional Political Economy 4 (3): 425–48.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Pasour, E.C. Redistribution and constitutional political economy. Constit Polit Econ 5, 81–98 (1994). https://doi.org/10.1007/BF02393257
Issue Date:
DOI: https://doi.org/10.1007/BF02393257