Transition from Classical to Neoclassical Utilitarianism

Jul 9, 2024

Transition from Classical to Neoclassical Utilitarianism

Introduction

  • Classical Utilitarianism - Jeremy Bentham's doctrine.
  • Neoclassical Utilitarianism - Late 19th, early 20th century.
  • Key Figure - John Stuart Mill.
  • Rights-Utility Synthesis - Combining utilitarian efficiency and individual rights.

Developments Across Disciplines

  • Political theory, economics, and philosophy saw parallel transitions.
  • Economics Evolution
    • Vilfredo Pareto - Central figure in developing neoclassical economics.
    • Other contributors - Marshall, Edgeworth.
    • Impact on understanding markets, legitimacy, and distributive justice.
  • Moral Philosophy
    • Emotivism and Stevenson - Ethical claims as expressions of emotions.
    • Historical Context: Hobbes criticized Aristotle; Hume and Bentham had similar utilitarian views emphasizing shared human psychological structures.

Emotivism and Relativism

  • Stevenson's emotivist doctrine:
    • Ethical statements express emotional reactions.
    • Radically questioned whether people have the same utility functions.
    • Seen as moral relativism.

Neoclassical Economics Explained

  • Core Concepts
    • Indifference Curves: Trade-offs between goods like wine and bread.
    • Diminishing Marginal Utility: More of a good, less additional utility it provides.
    • Ordinal Utility: Rank ordering preferences without precise measurement.
  • Pareto’s Principle
    • Pareto Superior: Move towards situations improving utility for at least one without harming others.
    • Pareto Inferior: Moves that make all worse off.
    • Pareto Optimal: No change can improve one's utility without reducing another's.
    • Implications: No interpersonal utility comparisons.
  • Edgeworth Box Diagram
    • Visualization of trade-offs between two individuals' utilities.
    • Contract Curve/Pareto Frontier: Where no further beneficial trades can be made.
  • Application to Redistribution
    • Pareto says no scientific basis for some redistributive moves.
    • Bentham’s principle allows redistribution for increasing overall utility.

Comparative Analysis

  • Classical Utilitarianism (Bentham)
    • Measures utility, supports redistributive politics.
    • Vulnerable to critique—ignores individual differences.
  • Neoclassical Utilitarianism (Pareto)
    • Cannot scientifically justify redistributions, respects individual utility variations.
    • Pro-market status quo friendly, less radical than classical.
    • Fetishizes differences among people, e.g., disabled person not contributing utility.

Conclusions

  • Shift from classical to neoclassical represents a move from radical redistribution to status quo maintenance.
  • Prepares the ground for studying John Stuart Mill’s harm principle in political theory.