Is Social Justice a Mirage?

AuthorHaeffele, Stefanie
PositionF.A. Hayek's critique in "The Mirage of Social Justice" - Critical essay

There is both popular and scholarly concern that the current socioeconomic systems in the United States and other Western democracies are not working, especially for the least advantaged. (1) Discrimination based on race, ethnicity, gender, sexual orientation, and age has declined in recent decades, but some worry that discrimination on these margins is still too prevalent. (2) Issues such as inequality and lack of social mobility are frequentiy debated, but there is no consensus around the nature or extent of or solutions to these social problems. The least advantaged certainly lack economic power and political capital. In response, there have been widespread demands for social justice usually motivated by genuine concern for the least advantaged.

Social justice is about the fair distribution of power and wealth in society (Duff et al. 2013, 321). Demands for social justice thus hope to correct the inequalities brought about by the interaction between powerful market participants and government officials. Proponents of social justice often call for increased equality through equal rights to opportunities or equal distribution of wealth based on merit or the redistribution of wealth (see Reisch 2002; Jackson 2005; Duffy 2010). Policy and social work--through both government welfare programs and private charity--became the major mechanisms for achieving these goals (see Reisch 2002; Duffy 2010).

Developments in the late twentieth century "expand[ed] the range of social justice concerns beyond distributive mechanisms by drawing in issues around recognition, representation, identity, a focus on process alongside outcomes, and inculcating an obligation to challenge the normative dominant governing, economic, and belief systems in which power, privilege, and oppression are enacted" (Duff et al. 2013, 321-22). This view of social justice is not only about redistribution but also about examining the underlying institutions and the dynamics between the privileged and disadvantaged, between the elite and the rest of society. It is no longer primarily about the potential abuses of capitalism, but also about a recognition of discrimination in all aspects of social life (Duff et al. 2013). Therefore, values of social justice today include equality as well as inclusivity, diversity, and multiculturalism (Reisch 2002).

Given the ambitious aims of the proponents of social justice, it is difficult to understand exactly what social justice might look like in practice. Although much of the literature advocates for government intervention to ensure rights and to redistribute income, and many efforts to do so have been enacted, our society still has social injustices. So how can we adjust the current system to effectively address the needs of the disadvantaged? Can we constrain profit and still make progress (i.e., balance the conflicting values of equality and liberty)? Can we constrain special interests from obtaining privileges from government and still provide a broad array of public services (i.e., diminish the power of elites in order to benefit the masses)? Any reforms that attempt to address these issues must arguably be developed from an understanding of (1) the institutional systems that shape our society, (2) the incentives and limitations that influence action, and (3) the unintended consequences that may arise.

F. A. Hayek's critique of social justice, developed in The Mirage of Social Justice (1976), the second volume of Law, Legislation, and Liberty, is perhaps one of the most compelling critiques because it attempts to address the three aspects mentioned in the previous paragraph. Hayek argues that the outcomes of market activity (wealth inequality) cannot be deemed just or unjust. The outcome of the game (who wins or loses) is not an issue of justice, though individuals' actions within the game may be. (3) However, redress against individual actors is the realm of justice rather than of social justice. For Hayek, justice can be carried out only against individuals or individuals gathered in organizations, but not against society and social institutions. Hayek goes on to express that many calls for reform in the name of social justice have led to special interests seeking privileges from government, often in an attempt to keep their current social positions rather than to help the least advantaged. He argues that government should instead stick to universal, generalizable rules (such as the protection of private property and the freedom to pursue one's own goals and interests) that apply to everyone and ensure the functioning of a liberal social order.

Hayek highlights many concerns regarding social justice, but there are tensions or inconsistencies in his approach. (4) Here we argue that although the outcome of a game cannot generally be deemed just or unjust, the referees of the game may be. (5) We also argue that there is at least one scenario where it would be appropriate to call even a fairly played and refereed game unjust. When the rules of the socioeconomic game or the referees favor the powerful, the chances that the least advantaged will rise to the top is thwarted. In this scenario, it is worth reexamining the role and functions of these social institutions, attempting to reform them where possible, and providing redress for the disadvantaged where it makes sense to do so.

In this paper, we examine the concept of social justice by critiquing and expanding upon Hayek's (1976) view. Because his critique focuses on the social justice concerns regarding economic outcomes, we limit our discussion to this aspect of social justice. In the next section, we examine that critique, including the notion that the outcomes of a game can be neither just nor unjust. In the second section, we explore how the rules of a game, the officials empowered to interpret and enforce those rules, and even the results of a game that is fairly played and refereed may in fact be just or unjust and highlight how this argument relates to current calls for social justice and the social institutions involved. We conclude by briefly speculating on what social justice might demand and the potential institutions that can remedy injustices.

The Outcomes of Games Are Neither Just nor Unjust

In The Mirage of Social Justice (1976), Hayek lays out how the market functions, the principles and rules necessary for the maintenance of the market order, and a critique against calls for social justice that interfere with the workings...

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