What are these normative economic rights?

Allocation, Distribution, Scale, and Depth

One of the important contributions of the ecological economists to the overall economic dialogue has been their emphasis on this notion of economic scale, which they generally define as a measure of the physical volume of matter-energy throughput, or the efficiency with which the economy is using the sources and sinks of the ecosystem. When they introduce the idea of scale, they typically do so in contrast to the more widely accepted ideas of economic allocation and distribution.

As they see it, economics must address the perennial questions of allocation, distribution, and scale, seeking the appropriate means via market, state, etc. to the desired ends of efficient allocation, fair distribution, and sustainable scale. (Herman Daly, Beyond Growth, 45-60; Robert Costanza, et.al., Ecological Economics, 80-83) Clearly, there are some value judgments being expressed in the crisp adjectives they choose to define their desired ends, so I will often adopt a more transparently normative, but deliberately ambiguous term like right allocation, right distribution, and right scale. As I presented in Sustainable Growth, I think we can benefit from the recognition of a fourth facet to economic development: that of economic depth.

What is Right? Who Decides?

Assuming for the sake of discussion that we can adequately define and measure degrees of economic allocation, distribution, scale, and depth, what can we say about right allocation, right distribution, right scale, and right depth? Given the positive economic truths, what are these normative economic rights? Who decides?

Because the ecological economists have already put a proposal on the table for three out of the four normative judgments, it might be useful to start with this. As they see it, economics must seek the appropriate means via market, state, and social processes to the desired ends of efficient allocation, fair distribution, and sustainable scale.

(Herman Daly, Beyond Growth, 45-60; Robert Costanza, et.al., Ecological Economics, 80-83) Continue reading "What is Right? Who Decides?" » Posted by Daniel O'Connor Permalink Comments Welcome to Catallaxis!