The Kantian Person/Thing Principle in Political Economy

Abstract

Normative ethical theories are usually divided into two broad categories: (A) utilitarian theories, and (B) rights-based (or deontological) theories. Bergson-Samuelson welfare economics is a well-known example of a utilitarian normative economic theory [Bergson 1966; Samuelson 1972]. In Samuelson's memorable phrase, cash value of a doctrine is in its vulgarization, and cash value of welfare economics is to be found in wealth maximization of Law and Economics approach to jurisprudence. Immanuel Kant and Ronald Dworkin are classical and modem examples of ethical and juridical thinkers using a rights-based approach [Dworkin 1978, 1985]. The labor theory of property and democratic principle of self-government are rights-based theories with direct economic implications when applied to production [Ellerman 1984, 1985, 1986]. The theory sketched here integrates labor theory of property and democratic theory into a Kantian framework. There are at least two non-equivalent versions of the categorical imperative found in Kant's writings. The first version is generalization or universality principle: Act only on that maxim through which you can at same time will that it should become a universal law [Kant 1964, p. 88]. The second version is personhood principle: Act in such a way that you always treat humanity, whether in your own