Capitalism and Human Progress
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Description
This chapter discusses the relationship between capitalism and progress and ends with a discussion of three mechanisms for reducing some of the problems associated with markets. A familiar argument says that markets must advance progress under ideal conditions because they guarantee Pareto optimality. It is shown here that for a variety of reasons—among them the incommensurability of values, the incommensurability of persons, and the fact that history matters—Pareto optimality is neither necessary nor sufficient for progress. Capitalism—understood as the pervasive use of markets—appears, under modern conditions, to lead to greater material inequality, butwhat is problematic is (a) the absolute lack of certain basic resources and (b) the social and political inequalities associated with great differences in wealth. These last can be mitigated by the familiar state mechanisms of law regulation and tax incentives, but also by professional business norms sustained by a concern for one’s honor.
Source Publication
Performance and Progress: Essays on Capitalism, Business, and Society
Source Editors/Authors
Subramanian Rangan
Publication Date
2015
Recommended Citation
Appiah, Kwame Anthony, "Capitalism and Human Progress" (2015). Faculty Chapters. 108.
https://gretchen.law.nyu.edu/fac-chapt/108
