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Economics--Moral and ethical aspects, Work ethic, Economic development--Moral and ethical aspects.
publication date
:
1994
lcc
:
HB72.B833 1994eb
ddc
:
174/.4
subject
:
Economics--Moral and ethical aspects, Work ethic, Economic development--Moral and ethical aspects.
Page iii
Ethics and Economic Progress
By James M. Buchanan
UNIVERSITY OF OKLAHOMA: NORMAN AND LONDON
Page iv
OTHER BOOKS BY JAMES M. BUCHANAN
(with Gordon Tullock) The Calculus of Consent: Logical Foundations of Constitutional Democracy (Ann Arbor, 1962)
The Limits of Liberty: Between Anarchy and Leviathan (Chicago, 1975)
Freedom in Constitutional Contract (College Station, Texas, 1978)
Liberty, Market, and State: Political Economy in the 1980s (Brighton, 1985)
Economics: Between Predictive Science and Moral Philosophy (College Station, Texas, 1987)
The Economics and the Ethics of Constitutional Order (Ann Arbor, 1991)
Better than Plowing and other Personal Essays (Chicago, 1992)
Library of Congress Cataloging-in-Publication Data Buchanan, James M. Ethics and economic progress / by James M. Buchanan. p. cm. Includes bibliographical references and index. ISBN 0-8061-2596-9 (hardcover) ISBN 0-8061-2935-2 (paperback) 1. EconomicsMoral and ethical aspects. 2. Work ethic. 3. Economic developmentMoral and ethical aspects. I. Title. HB72.B833 1994 174'.4dc20 93-31846 CIP
The paper in this book meets the guidelines for permanence and durability of the Committee on Production Guidelines for Book Longevity of the Council on Library Resources, Inc.
Copyright 1994 by the University of Oklahoma Press, Norman, Publishing Division of the University. All rights reserved. Manufactured in the U.S.A.
2 3 4 5 6 7 8 9 10 11
Page v
CONTENTS
Preface
vii
Part I Three Lectures
1
Chapter 1. We Should All Work More: The Economic Value of the Work Ethic
5
Chapter 2. We Should All Save More: The Economics of the Saving Ethic
31
Chapter 3. We Should All Pay the Preacher: The Economic Origins of Ethical Constraints
60
Part II Three Papers on the Theme
89
Chapter 4. Externality in Tax Response
91
Chapter 5. The Economics and the Ethics of Idleness
112
Chapter 6. The Simple Economics of the Menial Servant
129
References
147
Index
151
Page vii
PREFACE
There are two parts to this book. The first part contains the revised texts of three lectures presented at the University of Oklahoma in October 1991. The lectures are on a single theme that is summarized in the book's title, Ethics and Economic Progress. The second part contains three chapters written separately which are closely related to the central theme. Two of these chapters were written for presentation as lectures at St. John's University, George Mason University, and the Southern Economic Association and have not been published. The third chapter, "Externality in Tax Response," was published in 1966 in the Southern Economic Journal and has not been previously reprinted. At the time that I wrote it, I did not recognize the generalization of the argument that becomes possible once analysis is shifted out of the neoclassical paradigm embodying universal constant returns. In one sense, the chapter might be used as an introduction to the more complex arguments in the other chapters of the book.
Page viii
The argument of chapter 1 relating to the work ethic has been developed over several stages of sophistication. Earlier versions have appeared. A short summary sketch of the analysis was published in my small book Essays on the Political Economy (Honolulu: University of Hawaii Press, 1989). A somewhat more complete but still informal argument was published as a single chapter in my book The Economics and the Ethics of Constitutional Order (Ann Arbor: University of Michigan Press, 1991). And a more complex and formal variant of the argument, jointly written with Yong J. Yoon, will be published in an edited volume, The Return to Increasing Returns (Ann Arbor: University of Michigan Press, forthcoming). The presentation in lecture form included here is, however, quite substantively different from the alternative efforts.
An early, very different version of the argument in chapter 3 is also included in The Economics and the Ethics of Constitutional Order.
The most controversial argument is probably that presented in chapter 6, where I suggest that Adam Smith's distinction between productive and unproductive labor has more merit than it is normally granted by modern economic theorists. I limit discussion to the labor of menial servants, but it is clear that the argument could be very considerably extended to apply to many other categories of employment. I should like, in particular, to extend the analysis to labor employed in the production of many services, especially those that are supplied collectively or through governmental
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