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Joseph Heath (born 1967) is a Canadian
philosopher A philosopher is a person who practices or investigates philosophy. The term ''philosopher'' comes from the grc, φιλόσοφος, , translit=philosophos, meaning 'lover of wisdom'. The coining of the term has been attributed to the Greek th ...
. He is
professor Professor (commonly abbreviated as Prof.) is an academic rank at universities and other post-secondary education and research institutions in most countries. Literally, ''professor'' derives from Latin as a "person who professes". Professo ...
of philosophy at the
University of Toronto The University of Toronto (UToronto or U of T) is a public research university in Toronto, Ontario, Canada, located on the grounds that surround Queen's Park. It was founded by royal charter in 1827 as King's College, the first institution ...
, where he was formerly the director of the '' Centre for Ethics''. He also teaches at the School of Public Policy and Governance. Heath's webpage at the University of Toronto declares his work "is all related, in one way or another, to critical social theory in the tradition of the
Frankfurt School The Frankfurt School (german: Frankfurter Schule) is a school of social theory and critical philosophy associated with the Institute for Social Research, at Goethe University Frankfurt in 1929. Founded in the Weimar Republic (1918–1933), dur ...
." He has published both academic and popular writings, including the bestselling '' The Rebel Sell''. His philosophical work includes papers and books in political philosophy, business ethics, rational choice theory, action theory, and critical theory. He received his
Bachelor of Arts Bachelor of arts (BA or AB; from the Latin ', ', or ') is a bachelor's degree awarded for an undergraduate program in the arts, or, in some cases, other disciplines. A Bachelor of Arts degree course is generally completed in three or four yea ...
from
McGill University McGill University (french: link=no, Université McGill) is an English-language public research university located in Montreal, Quebec, Canada. Founded in 1821 by royal charter granted by King George IV,Frost, Stanley Brice. ''McGill Univer ...
in 1990, where his teachers included Charles Taylor, and his
Master of Arts A Master of Arts ( la, Magister Artium or ''Artium Magister''; abbreviated MA, M.A., AM, or A.M.) is the holder of a master's degree awarded by universities in many countries. The degree is usually contrasted with that of Master of Science. Tho ...
and
Doctor of Philosophy A Doctor of Philosophy (PhD, Ph.D., or DPhil; Latin: or ') is the most common degree at the highest academic level awarded following a course of study. PhDs are awarded for programs across the whole breadth of academic fields. Because it is ...
(1995) degrees are from
Northwestern University Northwestern University is a private research university in Evanston, Illinois. Founded in 1851, Northwestern is the oldest chartered university in Illinois and is ranked among the most prestigious academic institutions in the world. Charte ...
, where he studied under Thomas A. McCarthy and
Jürgen Habermas Jürgen Habermas (, ; ; born 18 June 1929) is a German social theorist in the tradition of critical theory and pragmatism. His work addresses communicative rationality and the public sphere. Associated with the Frankfurt School, Habermas's wo ...
.Biography - Trudeau Fondation
''www.trudeaufoundation.ca''
Heath is the recipient of the
Pierre Elliott Trudeau Foundation The Pierre Elliott Trudeau Foundation (french: Fondation Pierre Elliott Trudeau), commonly called the Trudeau Foundation (french: Fondation Trudeau), is an independent and non-partisan Canadian charity founded in 2001 by friends and family of for ...
Fellowship (2012). In 2013, Heath was named to the
Royal Society of Canada The Royal Society of Canada (RSC; french: Société royale du Canada, SRC), also known as the Academies of Arts, Humanities and Sciences of Canada (French: ''Académies des arts, des lettres et des sciences du Canada''), is the senior national, bil ...
. His popular book ''Enlightenment 2.0'' won the 2014 Shaughnessy Cohen Prize for Political Writing. In 2021 Heath published an op-ed in the Globe and Mail which argued that the acronym BIPOC is problematic in the Canadian context, suggesting instead the acronym FIVM for "Francophone, Indigenous, and Visible Minority".


Ideas

The central claim of '' The Rebel Sell'' is that
counter-cultural A counterculture is a culture whose values and norms of behavior differ substantially from those of mainstream society, sometimes diametrically opposed to mainstream cultural mores.Eric Donald Hirsch. ''The Dictionary of Cultural Literacy''. Ho ...
movements have failed, and that they all share a common fatal error in the way they understand society; hence, counter-culture is not a threat to "the system". For example, it is suggested of
Adbusters The Adbusters Media Foundation is a Canadian-based not-for-profit, pro-environment organization founded in 1989 by Kalle Lasn and Bill Schmalz in Vancouver, British Columbia. Adbusters describes itself as "a global network of artists, activis ...
' Blackspot campaign that the shoe's existence proves that "no rational person could possibly believe that there is any tension between 'mainstream' and 'alternative' culture." In the book '' Filthy Lucre'', Joseph Heath criticizes the idea that tax-paying is inherently different from consumption, and argues that the idea of a tax freedom day is flawed:
It would make just as much sense to declare an annual "mortgage freedom day", in order to let mortgage owners know what day they "stop working for the bank and start working for themselves". ...But who cares? Homeowners are not really "working for the bank"; they're merely financing their own consumption. After all, they're the ones living in the house, not the bank manager.


"Market failures" or "Paretian" approach to business ethics

In
business ethics Business ethics (also known as Corporate Ethics) is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business c ...
, Heath advances a new theory, what he calls a "
market failure In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value. Market failures can be viewed as scenarios where indiv ...
s" or "
Paretian Pareto efficiency or Pareto optimality is a situation where no action or allocation is available that makes one individual better off without making another worse off. The concept is named after Vilfredo Pareto (1848–1923), Italian civil engine ...
" approach, which states that "the market is essentially a staged competition, designed to promote
Pareto efficiency Pareto efficiency or Pareto optimality is a situation where no action or allocation is available that makes one individual better off without making another worse off. The concept is named after Vilfredo Pareto (1848–1923), Italian civil engi ...
, and in cases where the explicit rules governing the competition are insufficient to secure the class of favoured outcomes, economic actors should respect the spirit of these rules and refrain from pursuing strategies that run contrary to the point of the competition". The approach is neither akin to the shareholder theory, the
stakeholder theory The stakeholder theory is a theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities like employees, suppliers, local communities, creditors, and others. It addresses morals ...
or to a personal ethics framework. Heath's
market failure In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value. Market failures can be viewed as scenarios where indiv ...
s approach follows from his work in
political economy Political economy is the study of how economic systems (e.g. markets and national economies) and political systems (e.g. law, institutions, government) are linked. Widely studied phenomena within the discipline are systems such as labour ...
. According to Heath, the market is not a system of natural justice. Rather, it is an imperfect but efficient institutional arrangement designed to maximize
social welfare Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
by way of an unresolved
collective action problem A collective action problem or social dilemma is a situation in which all individuals would be better off cooperating but fail to do so because of conflicting interests between individuals that discourage joint action. The collective action proble ...
. In other words, markets are "special-purpose institutions designed to promote efficiency", that need to be "embedded within the broader context of a
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equita ...
, which engages in both market-complementing and redistributive policies to claim to be just."Heath, 2014, p. 10 Since these structured competitions are implemented "for the narrow reason" that, in a reasonably competitive market, they generate social benefits through
positive externalities In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either c ...
, "adversarial ethics" are acceptable in the circumscribed and limited role of markets. Indeed, economic actors engaged in market transaction "must be given a fairly broad exemption from the norms of equality or fairness". However, they must be held accountable to the fundamental principles required to have a competitive and efficiency promoting market. Therefore, "the central role of
business ethics Business ethics (also known as Corporate Ethics) is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business c ...
is ��not to bring in 'outside' moral considerations to condemn the latest outrage, but to clarify and to correct the self-understanding of participants in the market economy �� In order to do so, it has no need to appeal to normative standards beyond those that are already implicit in the institutions of a market economy." Hence, "the overall set of profit-maximizing strategies is partitioned into three categories, separating out the immoral and the illegal strategies from the normatively acceptable ones. The efficiency standard can be used to make both cuts. The 'acceptable/unacceptable' distinction is imposed by the efficiency properties of the market system as a whole. The set of unacceptable strategies can then be subdivided into 'immoral/illegal' using a transaction cost or regulatory cost analysis." In other words, the "basic thrust of '
business ethics Business ethics (also known as Corporate Ethics) is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business c ...
' is ��to discourage firms from taking advantage of market imperfections, even in cases where legal regulation is not feasible." Thus, "the firm should behave as though market conditions were perfectly competitive, even though they may not in fact be. The following list of imperatives provides some examples of the restrictions that this would imply : # Minimize
negative externalities In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either co ...
# Compete only through price and quality # Reduce information asymmetries between firm and customers # Do not exploit diffusion of ownership # Avoid erecting
barriers to entry In theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or ha ...
# Do not use cross-subsidization to eliminate competitors # Do not oppose regulation aimed at correcting market imperfections # Do not seek
tariffs A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and po ...
or other protectionist measures # Treat price levels as exogenously determined # Do not engage in opportunistic behaviour toward customers or others firms"Heath, 2014, p. 37


"Public-economic" normative model of the welfare state

Heath advocates the "public-economic" normative model of the
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equita ...
, that is to say a
normative Normative generally means relating to an evaluative standard. Normativity is the phenomenon in human societies of designating some actions or outcomes as good, desirable, or permissible, and others as bad, undesirable, or impermissible. A norm in ...
standard of the appropriate division of labor between the public and the private sector, as superior to the " redistributive" or "
Communitarian Communitarianism is a philosophy that emphasizes the connection between the individual and the community. Its overriding philosophy is based upon the belief that a person's social identity and personality are largely molded by community relati ...
ism" models. According to Heath, the "public-economic" normative model "provides both the best theoretical reconstruction of the existing configuration of
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equita ...
services, as well as the most useful set of principles to guide any proposed expansion or modification of these services".Heath (2011). Three Normative Models of the Welfare State, Public Reason 3 (2): 13-43 Heath describes the three models as such : "The three normative purposes most commonly cited as providing a justification for the scope of
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equita ...
activity are equality, community, or efficiency. These give rise to a corresponding set of models, which I refer to as the redistributive, the communitarian, and the public-economic models of the welfare state. The first sees the central function of the welfare state to be the redistribution of resources, with the goal of making the outcomes produced by the market economy less unequal. The second considers the central problem, central function of the welfare state to be that of imposing limits on the scope of the market, in order to resist the commodification of certain domains of interaction. The last model regards the welfare state as playing a role essentially complementary to that of the market. According to this view, the welfare state corrects market failure, either through regulation, subsidization and taxation, or the direct provision of goods and services." Heath further explains the "public-economic" model this way : "The “classical liberal” state creates the market economy through the institution of
property rights The right to property, or the right to own property (cf. ownership) is often classified as a human right for natural persons regarding their possessions. A general recognition of a right to private property is found more rarely and is typically h ...
and civil contract. The “welfare state” then emerges in those areas where liberal markets fail to produce optimal outcomes. This can take the form of
regulatory agencies A regulatory agency (regulatory body, regulator) or independent agency (independent regulatory agency) is a government authority that is responsible for exercising autonomous dominion over some area of human activity in a licensing and regulati ...
(in cases where the rules of marketplace competition need to be adjusted),
state-owned enterprise A state-owned enterprise (SOE) is a government entity which is established or nationalised by the ''national government'' or ''provincial government'' by an executive order or an act of legislation in order to earn profit for the governmen ...
s (typically in sectors where efficient competition cannot be organized), and public services (in cases where a system of effective property rights cannot be instituted, or where the transaction costs associated with a system of voluntary exchange would be prohibitive). According to this view, the welfare state essentially does the same thing as the market – both are in the business of enabling mutually beneficial forms of
cooperation Cooperation (written as co-operation in British English) is the process of groups of organisms working or acting together for common, mutual, or some underlying benefit, as opposed to working in competition for selfish benefit. Many animal a ...
to emerge – it merely organizes the transactions under somewhat different terms. ..The economic model of the welfare state should therefore be interpreted as the view that the state should strive to resolve
collective action problem A collective action problem or social dilemma is a situation in which all individuals would be better off cooperating but fail to do so because of conflicting interests between individuals that discourage joint action. The collective action proble ...
s in cases where it can do so more efficiently than other institutional forms." Heath advances that this model has "considerable explanatory power" for these state activities : 1) control of natural
monopolies A monopoly (from Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situation where a speci ...
, 2) control of imperfections in existing markets, 3) public provision, 4) the
social safety net The social safety net (SSN) consists of non-contributory assistance existing to improve lives of vulnerable families and individuals experiencing poverty and destitution. Examples of SSNs are previously-contributory social pensions, in-kind and fo ...
, 5) minority public goods and 6)
governance Governance is the process of interactions through the laws, norms, power or language of an organized society over a social system ( family, tribe, formal or informal organization, a territory or across territories). It is done by the g ...
failures. Heath notes that "there is nothing incoherent about a hybrid “redistribution and public goods” view of the
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equita ...
. However, the amount of actual egalitarian redistribution that goes on in a typical
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equita ...
is often dramatically overestimated. This is because many theorists treat the social safety net, which is essentially a set of government-run insurance programs, as a system of redistribution, and hence as governed by an egalitarian logic."


Publications


Popular books

* Heath, Joseph '' The Efficient Society: Why Canada is as Close to Utopia as it Gets'' Viking, 2001. * Heath, Joseph & Potter, Andrew '' The Rebel Sell: Why the Culture Can't be Jammed'' Capstone, 2005. * Heath, Joseph '' Filthy Lucre: Economics for People Who Hate Capitalism'' HarperCollins, 2009. . Also published under the title ''Economics Without Illusions: Debunking the Myths of Modern Capitalism'' Crown Publishing Group, 2010. * Heath, Joseph ''Enlightenment 2.0: Restoring Sanity to Our Politics, Our Economy, and Our Lives'' HarperCollins, 2014. * Heath, Joseph ''The Machinery of Government: Public Administration and the Liberal State'' Oxford University Press, 2020. * Heath, Joseph ''Cooperation and Social Justice'' University of Toronto Press, 2022.


Academic books

* Heath, Joseph ''Communicative Action and Rational Choice'' MIT, 2003. * Heath, Joseph ''Following the Rules: Practical Reasoning and Deontic Constraint'' Oxford University Press, 2008. * Heath, Joseph ''Morality, Competition, and The Firm: The Market Failures Approach to Business Ethics'' Oxford University Press, 2014. * Heath, Joseph ''Philosophical Foundations of Climate Change Policy'' Oxford University Press, 2021.


References


Sources

* Heath, Joseph (2014). ''Morality, Competition, and the Firm : The Market Failures Approach to Business Ethics''. Oxford University Press.


External links


University of Toronto profileAcademia.edu profileVideo (with mp3 available) of conversation between Heath
and
Will Wilkinson Will Wilkinson (born 1973) is an American writer. He was born in Independence, Missouri, and grew up in Marshalltown, Iowa. He graduated from the University of Northern Iowa in 1995, received an M.A. in philosophy from Northern Illinois Univers ...
on
Bloggingheads.tv Bloggingheads.tv (sometimes abbreviated "bhtv") is a political, world events, philosophy, and science video blog discussion site in which the participants take part in an active back and forth conversation via webcam which is then broadcast on ...
{{DEFAULTSORT:Heath, Joseph 1967 births Living people McGill University alumni Northwestern University alumni University of Toronto faculty 20th-century Canadian philosophers 21st-century Canadian philosophers