Thursday, August 16, 2018

Rationality and the Distribution of Wealth

While the common uses of 'rational' and 'ration' seem unrelated, the term 'analogy' suggests a common origin, i. e. 'logos', Greek for 'reasoning'.  Accordingly, the splitting of 'proportionality' from 'inference' is a subsequent development of an original radial concept of the Ground-Consequent relation, i. e. Inference is typically conceived as merely linear.  So, a distribution that is based on proportionality is, as the term 'ration' connotes, as rational as any deductive process.  Hence, when Smith attributes to the Invisible Hand the power of transforming the self-indulgent spending of the wealthy into a distribution of "equal portions", he is conceiving it as Rational, regardless of the lack of evidence verifying that attribution.  Nor does Mill's Utilitarianism salvage the putative Rationality of Capitalism, since its Greatest Happiness formula does not distinguish between different distributions of the same quantity of Happiness.  So, the standard concept of 'rationality' in Capitalist theories is well short of the full meaning of the term.

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