THE PUSHPIN PUNDIT

 

 

Ronald Dworkin’s Utilitarianism 

(posted July 2, 2006)

 

 

            When would Ronald Dworkin provide less compensation to a person with a greater disability, while providing more compensation to a person with a lesser disability?

            Short answer:  When utilitarianism would do so, since Dworkin’s system of “hypothetical insurance” is essentially a form of utilitarianism.  See Chapter 7 of my book Distributive Justice and Disability: Utilitarianism against Egalitarianism.

 

Long and roundabout answer: 

            Last semester I taught Will Kymlicka’s excellent textbook, Contemporary Political Philosophy.  Kymlicka is fair to utilitarianism, but utilitarianism is not his favorite theory of distributive justice; in fact, it is not even his second-favorite theory.  Kymlicka believes that Rawls improves on utilitarianism, and that Dworkin improves on Rawls.

            Kymlicka endorses Dworkin’s principle that (to simplify) unchosen disadvantages should be compensated.  Kymlicka also endorses the means by which Dworkin proposes to effect compensation, the system of “hypothetical insurance.”  There is a problem, however:  Dworkin’s hypothetical insurance reaches results that are inconsistent with the principle of compensating for unchosen disadvantage.  Kymlicka realizes that hypothetical insurance is not really the same as compensating for unchosen disadvantage, but he fails to realize how much daylight there is between the two; he fails to realize that hypothetical insurance is in fact a return to utilitarianism.

            In setting compensation for disability, the system of hypothetical insurance asks the following question:  To what extent would people insure against various kinds of disability, from a situation of equal material resources, assuming that they knew the frequency of disability but did not know whether they themselves were or would become disabled?  The average level of insurance coverage that hypothetical insurance buyers would buy for a disability then becomes the actual level of compensation for that disability.

            Suppose a painful disability, D1, that affects one out of every 1,000 people.  A treatment is available that will completely and permanently alleviate the pain, but it is very expensive: the cost of the treatment is twice the initial equal share of resources.  Presumably, hypothetical insurance buyers would buy enough insurance so that they would be able to afford the pain-relieving treatment if they happened to have the D1 disability when the veil of ignorance was lifted.  (The cost of this insurance would be approximately .002 times the initial share of resources.) 

            Now suppose another disability, D2.  This disability also affects one out of every 1,000 people, and it is even more painful than D1 (though it does not prevent people from working).  Unfortunately, there is no current treatment for D2, and there is very little likelihood of ever finding a treatment.  Presumably, then, hypothetical insurance buyers would insure against D2 at a far lower level of coverage than against D1:  as there is no treatment for D2, compensation for that condition would be far less beneficial. 

            It is theoretically possible, of course, that hypothetical insurance buyers would insure against D2 at a higher level of coverage than against D1; maybe insurance buyers would take an attitude of maximum risk-aversion, and would seek to make their worst-off state (D2) as good as possible.  But in considering Dworkin’s system of hypothetical insurance, we are likely to assume that hypothetical insurance buyers would not be maximally risk-averse (and by “we” I emphatically mean to include Dworkin himself).

            So Dworkin’s system would provide far less compensation to people with a greater unchosen disadvantage (disability D2, which is more painful), and would provide far more compensation to people with a lesser unchosen disadvantage (disability D1, which is less painful but is treatable).  Dworkin would provide far less compensation to people who are worse off, and far more compensation to people who could benefit more.  This is not egalitarianism, but rather a kind of utilitarianism. 

            It is because Dworkin’s hypothetical insurance is a kind of utilitarianism that Dworkin can achieve an intermediate position on compensating the disabled, avoiding the extremes of zero redistribution and virtually unlimited redistribution. 

            There are many complications to Dworkin’s theory, and I have glossed over them in this post.  So I repeat what I said in the Short Answer:  See Chapter 7 of my book.

 

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