31 May 1993

Justice vs Efficiency

Bob Rae said a while back that he was trying to reconcile social justice with economic efficiency.  But that is a false dichotomy.  The issue is not social justice vs. economic efficiency, because that is like saying the issue is social justice vs. social injustice, i.e., which is better.  “Economic efficiency” means profitability.  It does not mean an optimal way of doing things, where by optimal is meant the way that takes all costs and benefits into account, and therefore seeks to have the maximum productivity with the minimum possible costs and the maximum possible benefits.  Therefore, the most costly and destructive way of doing things may in fact be the way that is most “economically efficient.”  Social justice has never been, and will never be, reconcilable that “economic efficiency.”  The best proof that the advocates of economic efficiency have social justice as the furthest thing on their minds is that they can “rationally” ask whether social injustice is economically efficient.

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