How Does Justice Relate to Economic Welfare?

Abstract

This paper argues—contra some Austro-libertarians—that whether a given exchange is welfare-enhancing or welfare-diminishing does not depend on whether that exchange is just or unjust, respectively. Rather, we suggest that in light of our two thought experiments, Austro-libertarianism has at least a pro tanto reason to conceive of justice and welfare as two logically distinct ideals. This would in turn, most interestingly, predict the possibility of (a) just but welfare-diminishing exchanges and (b) unjust but welfare-enhancing ones. Upon considering possible rejoinders to our points, we suggest that Austro-libertarians abandon a justice-based notion of welfare.