Though liberalism is often discussed as a single political theory, there are in fact two basic forms of liberalism and the distinction between them is of great importance. Both argue against the legal enforcement of private moralityâ€”both argue against the Moral Majority’s views of homosexuality and abortion, for exampleâ€”and both argue for greater sexual, political, and economic equality. But they disagree about which of these two traditional liberal values is fundamental and which derivative. Liberalism based on neutrality takes as fundamental the idea that government must not take sides on moral issues, and it supports only such egalitarian measures as can be shown to be the result of that principle. Liberalism based on equality takes as fundamental that government treat its citizens as equals, and insists on moral neutrality only to the degree that equality requires it.
The difference between these two versions of liberalism is crucial because both the content and appeal of liberal theory depends on which of these two values is understood to be its proper ground. Liberalism based on neutrality finds its most natural defense in some form of moral skepticism, and this makes it vulnerable to the charge that liberalism is a negative theory for uncommitted people. Moreover it offers no effective argument against utilitarian and other contemporary justifications for economic inequality, and therefore provides no philosophical support for those who are appalled at his administration’s economic program. Liberalism based on equality suffers from neither of these defects. It rests on a positive commitment to an egalitarian morality, and provides, in that morality, a firm contrast to the economics of privilege.
In this essay I shall set out what I believe are the main principles of liberalism based on equality.1 This form of liberalism insists that government must treat people as equals in the following sense. It must impose no sacrifice or constraint on any citizen in virtue of an argument that the citizen could not accept without abandoning his sense of his equal worth. This abstract principle requires liberals to oppose the moralism of the New Right, because no self-respecting person who believes that a particular way to live is most valuable for him can accept that this way of life is base or degrading. No self-respecting atheist can agree that a community in which religion is mandatory is for that reason finer, and no one who is homosexual that the eradication of homosexuality makes the community purer.
So liberalism as based on equality justifies the traditional liberal principle that government should not enforce private morality of this sort. But it has, of course, an economic as well as a social dimension. It insists on an economic system in which no citizen has less than an equal share of the community’s resources just in order that others may have more of what he lacks. I do not mean that liberalism insists on what is often called “equality of result,” that is, that citizens must each have the same wealth at every moment of their lives. A government bent on the latter ideal must constantly redistribute wealth, eliminating whatever inequalities in wealth are produced by market transactions. But this would be to devote unequal resources to different lives. Suppose that two people have very different bank accounts, in the middle of their careers, because one decided not to work, or not to work at the most lucrative job he could have found, while the other single-mindedly worked for gain. Or because one was willing to assume especially demanding or responsible work, for example, which the other declined. Or because one took larger risks which might have been disastrous but which were in fact successful, while the other invested conservatively. The principle that people must be treated as equals provides no good reason for redistribution in these circumstances; on the contrary, it provides a good reason against it.
For treating people as equals requires that each be permitted to use, for the projects to which he devotes his life, no more than an equal share of the resources available for all, and we cannot compute how much any person has consumed, on balance, without taking into account the resources he has contributed as well as those he has taken from the economy. The choices people make about work and leisure and investment have an impact on the resources of the community as a whole, and this impact must be reflected in the calculation equality demands. If one person chooses work that contributes less to other people’s lives than different work he might have chosen, then, although this might well have been the right choice for him, given his personal goals, he has nevertheless added less to the resources available for others, and this must be taken into account in the egalitarian calculation. If one person chooses to invest in a productive enterprise rather than spend his funds at once, and if his investment is successful because it increases the stock of goods or services other people actually want, without coercing anyone, his choice has added more to social resources than the choice of someone who did not invest, and this, too, must be reflected in any calculation of whether he has, on balance, taken more than his share.
This explains, I think, why liberals have in the past been drawn to the idea of a market as a method of allocating resources. An efficient market for investment, labor, and goods works as a kind of auction in which the cost to someone of what he consumes, by way of goods and leisure, and the value of what he adds, through his productive labor or decisions, is fixed by the amount his use of some resource costs others, or his contributions benefit them, in each case measured by their willingness to pay for it. Indeed, if the world were very different from what it is, a liberal could accept the results of an efficient market as defining equal shares of community resources. If people start with equal amounts of wealth, and have roughly equal levels of raw skill, then a market allocation would ensure that no one could properly complain that he had less than others, over his whole life. He could have had the same as they if he had made the decisions to consume, save, or work that they did.
But of course in the real world people do not start their lives on equal terms; some begin with marked advantages of family wealth or of formal and informal education. Others suffer because their race is despised. Luck plays a further and sometimes devastating part in deciding who gains or keeps jobs everyone wants. Quite apart from these plain inequities, people are not in fact equal in raw skill or intelligence or other native capacities; on the contrary, they differ greatly, through no choice of their own, in the various capacities that the market tends to reward. So some people who are perfectly willing, even anxious, to make exactly the choices about work and consumption and savings that other people make end up with fewer resources, and no plausible theory of equality can accept this as fair. This is the defect of the ideal fraudulently called “equality of opportunity”: fraudulent because in a market economy people do not have equal opportunity who are less able to produce what others want.
So a liberal cannot, after all, accept the market results as defining equal shares. His theory of economic justice must be complex, because he accepts two principles which are difficult to hold in the administration of a dynamic economy. The first requires that people have, at any point in their lives, different amounts of wealth insofar as the genuine choices they have made have been more or less expensive or beneficial to the community, measured by what other people want for their lives. The market seems indispensable to this principle. The second requires that people not have different amounts of wealth just because they have different inherent capacities to produce what others want, or are differently favored by chance. This means that market allocations must be corrected in order to bring some people closer to the share of resources they would have had but for these various differences of initial advantage, luck, and inherent capacity.
Obviously any practical program claiming to respect both these principles will work imperfectly and will inevitably involve speculation, compromise, and arbitrary lines in the face of ignorance. For it is impossible to discover, even in principle, exactly which aspects of any person’s economic position flow from his choices and which from advantages or disadvantages that were not matters of choice; and even if we could make this determination for particular people, one by one, it would be impossible to develop a tax system for the nation as a whole that would leave the first in place and repair only the second. There is therefore no such thing as the perfectly just program of redistribution. We must be content to choose whatever programs we believe bring us closer to the complex and unattainable ideal of equality, all things considered, than the available alternatives, and be ready constantly to reexamine that conclusion when new evidence or new programs are proposed.2
Nevertheless, in spite of the complexity of that ideal, it may sometimes be apparent that a society falls far short of any plausible interpretation of its requirements. It is, I think, apparent that the United States falls far short now. A substantial minority of Americans are chronically unemployed or earn wages below any realistic “poverty line” or are handicapped in various ways or burdened with special needs; and most of these people would do the work necessary to earn a decent living if they had the opportunity and capacity. Equality of resources would require more rather than less redistribution than we now offer.
This does not mean, of course, that we should continue past liberal programs, however inefficient these have proved to be, or even that we should insist on “targeted” programs of the sort some liberals have favoredâ€”that is, programs that aim to provide a particular opportunity or resource, like education or medicine, to those who need it. Perhaps a more general form of transfer, like a negative income tax, would prove on balance more efficient and fairer, in spite of the difficulties in such schemes. And, of course, whatever devices are chosen for bringing distribution closer to equality of resources, some aid undoubtedly goes to those who have avoided rather than sought jobs. This is to be regretted, because it offends one of the two principles that together make up equality of resources. But we come closer to that ideal by tolerating this inequity than by denying aid to the far greater number who would work if they could. If equality of resources were our only goal, therefore, we could hardly justify the present retreat from redistributive welfare programs.
I discussed liberty as based on the concept of neutrality in "What Liberalism Isn't," NYR, January 20, 1983.↩
In a recent article I tried to develop a theoretical standard for redistribution along the following lines. Suppose we imagine that people have an equal risk of losing whatever talents they have for producing wealth for themselves, and are offered insurance, on equal terms, against this risk. Given what we know about people's aversion to risk in the United States, we can sensibly speculate about the amount of the insurance they would buy and the premium rate structure that would develop. We can justifiably model a system of tax and redistribution on this hypothetical insurance market, by taxing people up to the limit of the premiums they would have paid. This would provide more taxes and a greater fund for redistribution than we currently provide, but obviously not equality of result. See "What is Equality? Part II," in Philosophy and Public Affairs, Fall 1981.↩
I discussed liberty as based on the concept of neutrality in “What Liberalism Isn’t,” NYR, January 20, 1983.↩
In a recent article I tried to develop a theoretical standard for redistribution along the following lines. Suppose we imagine that people have an equal risk of losing whatever talents they have for producing wealth for themselves, and are offered insurance, on equal terms, against this risk. Given what we know about people’s aversion to risk in the United States, we can sensibly speculate about the amount of the insurance they would buy and the premium rate structure that would develop. We can justifiably model a system of tax and redistribution on this hypothetical insurance market, by taxing people up to the limit of the premiums they would have paid. This would provide more taxes and a greater fund for redistribution than we currently provide, but obviously not equality of result. See “What is Equality? Part II,” in Philosophy and Public Affairs, Fall 1981.↩