RATIONAL NORMATIVE ECONOMICS VS SOCIAL-WELFARE AND SOCIAL CHOICE

The central part of the social ethics of economics, based on concepts of 'Social Welfare', and the corresponding part of Social Choice Theory, are mistaken approaches. Defining the social optimum as the maximal element of an ordering independent of the possibilities is shown to violate both common concepts of justice, and rationality in the normal sense of the term. Anyway, the social optimum need not be defined for non-existing possibilities and individual preferences. Rationality requires that the optimum be defined by equalities of liberties in a large sense (means, powers, rights, etc.). A number of studies work within this paradigm (liberalisms, equities, inequalities, etc.). The origin of the mistake is to be traced to the political introduction of utilitarianism into English political philosophy.