Social Welfare, State Intervention, and Value Judgments

In: The independent review: journal of political economy, Volume 11, Issue 1, p. 19-36

Abstract

Discusses, under the rubric of 'new welfare economics', the value judgments seemingly inherent in state intervention in the redistribution of wealth through social welfare. The question is raised of whether state economic intervention based on value judgments is justified. The theses of such theorists as Nicholas Kaldor, John Hicks, & Vilfredo Pareto are drawn to examine this question, before going on to another, which must be addressed mathematically,"Can the state enhance economic efficiency -- or what is the same, increase society's income -- without a value judgment that favors some & harms others?" It is concluded that there is a way to resolve these questions: postulate a "social welfare function" indicating a society's preferences. Figures, References. J. Stanton