New Economic Thinking and Economic Justice

Abstract

The purpose of Value Economics has been to examine some of the issues facing economic theory and practice, with particular emphasis on economics as a moral science, and on the creation of economic value in relation to economic justice. It is proposed that the creation of economic value is a basic principle of economic justice, as it provides a measure of the monetary wealth (NOPAT less cost of capital) available for distribution between the stakeholders in an economic enterprise. In other words, it provides a monetary quantification on which decisions can be made for the distribution of this wealth according to the principles of economic justice regarding the creation of this wealth in a given situation. The chapter looks at some recent developments in distributive and fiscal justice in the work of the OECD’s project Base Erosion and Profit Sharing (BEPS), the Tax Justice Network, and the Center for Economic and Social Justice (CESJ). It summarises the key issues and questions raised by Value Economics, and proposes two “economic value” projects to provide information for answering five strategic questions for new economic thinking. It concludes with some final considerations on how economic value relates to economic justice in responding to the demands of consumer preferences, and the needs of human welfare (eudaimonia).

The ideas of economists and political philosophers, both when they are right and when they are wrong are more powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually slaves of some defunct economist.

John Maynard Keynes