In recent years, the psychological causes and consequences of poverty have received renewed attention from scientists and policymakers. In this essay, we summarize new developments in this literature. First, we discuss advances in our understanding of the relationship between income and psychological well-being. There is a robust positive relationship between the two, both within and across countries, and in correlational and causal analyses. Second, we summarize recent work on the impact of “scarcity” and stress on economic preferences and decision-making. Our view of this literature is that the evidence is relatively weak. Third, we summarize evidence on the impact of psychological interventions on economic outcomes. Light-touch psychological interventions, such as videos that aim to raise aspirations, have shown some promise in encouraging investment and improving economic well-being. Similarly, psychotherapy and pharmacological mental health treatments have positive effects on economic outcomes. Relative to the effects of cash transfers, these impacts are small in absolute terms and large in per-dollar terms. We conclude by discussing whether a psychological poverty trap is plausible.

This essay addresses tensions within political philosophy between group rights, which allow historically marginalized communities some self-governance in determining its own rules and norms, and the rights of marginalized subgroups, such as women, within these communities. Community norms frequently uphold patriarchal structures that define women as inferior to men, assign them a subordinate status within the community, and cut them off from the individual rights enjoyed by women in other sections of society. As feminists point out, the capacity for voice and exit cannot be taken for granted, for community norms may be organized in ways that deny women any voice in its decision-making forums as well as the resources they would need to survive outside the community. This essay draws on research among the Gond, an indigenous community in India, to explore this debate. Given the strength of the forces within the community militating against women’s capacity for voice or exit, the question motivating our research is: Can external organizations make a difference? We explore the impacts of two external development organizations that sought to work with women within these communities in order to answer this question.

A free world is one in which human beings can live free, self-directed lives. A great obstacle to such a world is severe poverty, still blighting the lives of half of humankind. We have the resources, technologies, and administrative capacities to eradicate severe poverty, but doing so requires some restructuring of existing social arrangements. We might begin with the current regime governing innovation, which has monopoly markups as its key funding source. Such monopoly rents encourage the quest for innovations, but also greatly impede their diffusion. This headwind harms the poor, who cannot afford monopoly prices and whose specific needs innovators thus tend to ignore. It also works against potential innovations whose benefits would mostly go to third parties whom buyers care little about. Both problems can be much alleviated through a supplementary alternative reward mechanism that would enable innovators to exchange their monopoly privileges on any patentable technology for impact rewards based on the social benefits achieved with it. By promoting innovations and their diffusion together, international impact funds would bring substantial gains in justice and cost-effectiveness, especially in the pharmaceutical and green-technology sectors.

As in other sciences, an economic experiment is an artificial situation created by a researcher for the purpose of answering one or more scientific questions. Experiments of various types are used in economics to understand the causes of poverty and how it might be alleviated. The methods can identify causal relationships between variables and thereby isolate factors that can lead to poverty as well as to document the behavioral consequences of poverty. Experiments can also be used to provide test beds for proposed policies to alleviate poverty. This essay describes a variety of ways in which experiments have been employed to understand and combat poverty. A line of laboratory experiments that considers which economic institutions are conducive to economic growth is discussed in detail. The results show that decentralized markets are conducive to allowing an economy to operate as efficiently as it can. However, in an economy with a theoretical “poverty trap,” the market works more efficiently if accompanied by a democratic voting process and freedom of communication.

Until recently, economics conceived of poverty solely as a lack of material resources. This view likely captures the reality of poverty experienced by many people around the globe. However, two waves of behavioral economics demonstrate that the narrowing of people’s external environments may change people themselves: poverty lowers the quality of decision-making and poverty and oppression may depress the capacity to aspire. Poverty and a history of oppression also change how individuals are perceived. To overcome these effects may require helping people acquire new mental models. This essay discusses key findings from behavioral economics, the implications for agency, and some interventions with promising outcomes. We hope to inspire scholars and policymakers to think more deeply about the nature of poverty and oppression and to consider policies that target the psychological and sociological factors that create cycles of poverty.

Egalitarian commitments have often been thought compatible with practices that are later identified as inegalitarian. Thus, a fundamental task of egalitarianism is to make inequality visible. Making inequality visible requires including marginalized people, questioning what equality requires, and naming inequality. At the same time, egalitarianism is a movement for change: egalitarians want to make things more equal. When egalitarians seek change at the institutional level, the two egalitarian tasks are complementary: making inequality visible is part of campaigning to make things better. However, at the level of social norms there is a dilemma because making inequality visible can make things worse. Making inequality visible can reinforce unequal norms and fail to address intersectionality. The case of gendered pronouns illustrates this dilemma.

There are three distinct forces that conspire to produce a great deal of economic misery. We can refer to them, for convenience, as misfortune, unfairness, and improvidence. Political philosophers have often shown an interest in one or another of these, but seldom all three. Furthermore, those who do acknowledge all three have often felt driven to collapse them into one root cause of inequality. My goal in this essay will be to argue that the three are independent of one another, but more importantly, that they each require distinct remedies. This is important for egalitarians because it defeats any attempt to develop a “one-size-fits-all” policy aimed at creating a more equal society. This analysis helps us to understand several of the tensions that arise in our attempts to combat inequality that are often obscured by an overemphasis on the power of redistributive taxation as well as generalized inattention to the way that successful welfare states achieve meaningful progress in promoting greater equality.

There are various egalitarian moral doctrines. They differ in the requirements they impose on institutions and social practices and on individual conduct. This essay sketches two versions of egalitarian social justice and claims that the requirements they impose should strike us as reasonable, all things considered. One is welfarist egalitarianism, a cousin of classical utilitarianism. This version requires bringing about good quality lives for people and fair (equal) distribution of this good across persons. A notable feature of welfarist egalitarianism is that it accommodates the seemingly antiegalitarian claim that it does not matter in itself how one person’s condition compares to that of another, so a fortiori it does not matter in itself whether or not one person’s condition compares to that of others in the one particular way of being equal. The other version is relational or freedom-oriented egalitarianism, which holds that we should above all ensure that people are free to live as they choose and relate as equals, without social hierarchy. In the latter half of the twentieth century, John Rawls developed a powerful articulation of relational egalitarian justice. This essay sketches the two rival egalitarianisms with a view to showing their respective moral attractiveness and to suggesting that the welfarist version has greater moral attraction.

Ever since the publication of G. A. Cohen’s essay “If You’re an Egalitarian, How Come You’re So Rich?” the matter of personal responsibility for the amelioration of economic disadvantage has become a question for egalitarian political philosophers to wrestle with both theoretically and personally. This essay examines “the demands of equality” in light of an egalitarian philosophy that focuses on human flourishing. I consider Cohen’s call for personal commitments to the egalitarian project to show both the power and problems of his approach and propose an alternative view, where individuals’ concern for living well involves an engagement with the demands of equality, but also some respite from its strictures.

This essay explains the prevalence of egalitarian beliefs among academic philosophers, individuals who enjoy significant wealth and privilege. I argue that their egalitarianism does not present a “paradox of conviction,” as G. A. Cohen contends, but follows logically from the institutional structure of academic philosophy. This structure creates a “veil of insignificance” wherein philosophy is a moral performance that incentivizes the adoption of egalitarian beliefs. Philosophers also view the world from behind what is termed a “veil of privilege” that incentivizes a public commitment to egalitarianism as a means of distancing themselves from the role of privilege in their life and encourages the hubristic assumption that the practical problems of socialism can be easily overcome with effort or ingenuity. Identity-protective motivated reasoning means that evidence conflicting with egalitarian beliefs is avoided, ignored, or dismissed. These dynamics are reinforced by established actors who gatekeep the profession.

G. A. Cohen is justly acclaimed for his penetrating and searching critique of the commanding Rawlsian liberal paradigm in contemporary political philosophy. He is also well known for his fervent advocacy of a radical view of economic equality, namely, that “justice requires (virtually) unqualified equality itself.” This essay focuses on two issues at the heart of Cohen’s critique, namely, his argument that economic equality is a moral as well as a political responsibility, and his interrogatory question: “If you’re an egalitarian, how come you’re so rich?” I take up critics’ objection that Cohen’s arguments for what economic egalitarianism requires are overly morally demanding. I also present a puzzle about the critical reception of Cohen’s work: Given the amount and quality of engagement with his arguments on what egalitarianism would look like in a future just society, how come there’s been such scant attention to his reflections on the predicament of the “rich egalitarian” in current-day unjust society? The essay culminates in a tentative answer to this question.

It is widely accepted among political philosophers that distributive justice should be promoted by the state. This essay challenges this presumption by making two key claims. First, the state is not the only possible mechanism for attaining distributive justice. We could rely alternatively on the voluntary efforts and interactions of individuals and associations in civil society. The question of what mechanism we should rely on is a comparative and empirical one. What matters is which mechanism better promotes distributive justice. We cannot settle the question a priori in favor of the state. Second, several considerations suggest a presumption in favor of relying on civil society.

I argue for an egalitarian conception of market exchange that places the idea of equal power at the center of a procedural evaluation of markets. I explain the fundamental concept of equal power in markets and show that the egalitarian conception gives us a remedial basis for society shaping markets so that they allow a significant place for worker participation in firms. I use the phrase “worker participation” to mean that workers participate in the authoritative direction of the firm. This can include collective bargaining and worker management to introduce the kind of flexibility that is desirable in regulating market economies. Worker participation is a remedy to the presence of rigidities in markets that strongly favor authoritarian firms and that follow from and maintain unequal power in markets. The argument differs from the traditional argument that draws a parallel between state and firm, and so does not entail a general requirement of worker participation. It allows for some degree of participation of owners of capital also in the governance of firms.

Over its entire life, the Internal Revenue Code (like other tax systems) has never tried to tax economic income as such, because of the administrative and liquidity problems that arise from taxing any combination of values consumed and from appreciation (or depreciation) of capital stocks. Instead, the common practice limits tax occasions to a realization of income from sale or other disposition of property. Even then, if the proceeds of the transaction are not cash or marketable securities, as with many corporation reorganizations, taxation is deferred until these assets are converted in cash or marketable securities.

Any effort to eliminate these twin filters by taxing income—and income regardless of realization—will overburden government agencies and private taxpayers, while reducing economic activity. A wealth tax scores even worse by these welfare measures, creating massive problems of evasion and enforcement that will reduce capital formation across the board in the effort to transfer wealth from the ultra-rich to everyone else. A simple tax structure with affordable rates is the only path to economic prosperity.

The distributive justice literature has recently formulated several tax proposals, with limitarians or property-owning democrats proposing new or higher taxes on wealth or capital income intended to decrease the growing wealth gap. This essay joins this debate on inequality and redistributive taxation through the lens of the “benefit principle for public policy.” This principle says that specific rules and institutions are acceptable to the extent that they create benefits for all individuals in society, or at least don’t make anyone worse off. This benefit principle opposes wealth accumulation to the extent that wealth was generated through rent-seeking—that is, income unrelated to economic productivity, which is not embedded in mutually beneficial exchanges. I maintain, however, that ruling out rent-seeking requires not ex post taxation, but primarily a more “predistributive corrective policy,” that is, reconfiguration of market institutions to prevent wealth accumulation through rent-seeking in the first place. The alternative response is, thus, not to tackle inequality as such but to reform the market to promote the occurrence of mutually beneficial exchange.

Liberal egalitarians argue that the state is justified in taxing members of a political community to achieve distributive justice and ensure political equality and regime stability. This involves an uneasy compromise between equality and efficiency, a compromise that many argue has recently been undermined by the growth of unchecked wealth and income inequality. This essay argues that there is also a trade-off between selecting fair processes for taxation and aiming for particular distributive outcomes. The way people accumulate wealth, and the way states tax often matters more than distributive outcomes. Policymakers must allow for the fair assessment of tax liabilities, avoid excessive enforcement costs and prevent political actors from using tax systems to achieve their partial ends. Recognizing these considerations justifies a systematic scheme of taxation while constraining the mechanisms for collecting revenue. I justify this position using comparative analysis, which I contrast with the conceptual intuitionistic approach associated with egalitarianism.

Who should tax multinationals? National political figures sometimes signal their assumptions by making superior or even exclusive claims about who may tax “their” multinational companies, and it is common to hear such companies or their incomes referred to as “belonging” to one nation or another. The rhetoric reflects conventional wisdom about sovereign nations and their assumed entitlements, and is often invoked to curb or even sanction the seemingly excessive tax jurisdictions of some nations. But this conventional wisdom often ignores the fundamental dependence of multinationals on ongoing, extensive, and multifaceted regulatory cooperation involving most of the nations of the world. The goal of this essay is to demonstrate that given this dependence, there are no clear legal or normative boundaries to virtually any asserted tax jurisdiction. The claim provides a solution for neither double taxation nor the problems associated with excessive tax competition, but the essay concludes that recognizing the dependence of governments and “their” multinationals on multilateral cooperation should lead to an increase in focus on how nations go about negotiating the terms of their cooperation on tax.

In this essay, I explore the question of who should determine what an ambiguous tax statute means, the courts or the Department of Treasury. The answer to that question is based on two administrative law doctrines: Chevron and Brand X. Here, I explain why Chevron and Brand X violate the Administrative Procedure Act and are unworkable. Then, using a provision in the tax code, I propose that we return to a standard that is both consistent with the APA and easier to implement: Skidmore.

Lockeans regard taxation as a—perhaps sometimes permissible—infringement of moral property entitlements. This essay discusses whether, or in what form, this charge is defensible. In doing so, it will explore the truth and the limits of the conventionalist reply of Murphy and Nagel to Lockean challenges to taxation. It argues that there is a moral rationale for property conventions that is independent of the question whether and how one can acquire natural, pre-conventional property rights in the state of nature, that this rationale sets a moral standard for how good property conventions are and whether they are justifiable at all, and that once property conventions are in place, people’s moral property entitlements are at least partly determined by these conventions, sometimes even by unjustifiable ones that ought to be reformed. Because taxation can be a part of property conventions, taxation as such is not an infringement of moral property entitlements. But the essay will also argue that some taxation—excessive taxation—does infringe on moral property entitlements. This is because the moral rationale for property conventions sets some standards for what owners should be entitled to, and so excessive taxation will infringe upon moral entitlements that are partly not convention-based.

Taxation is more than one thing. Taxes can be levied in various ways on various things, with varying effects on a culture and an economy, and raising different challenges of justification.