Social inequality

Abstract

What happens when two children have to share a cookie? It depends. Chances of getting an equal division are best when one child divides the cookie and the other is allowed to choose first. This is less likely to happen when one child divides the cookie and gives part of it away. This example illustrates the point of a famous thought experiment designed by philosopher John Rawls to explain the ‘veil of ignorance’. Imagine that no one knows what his or her preferences, abilities or position in society will be – because this is covered by a veil of ignorance– what kind of society would we want to live in? This thought experiment invites us to think about fairness, equality and justice. Those who choose to have a society that is very hard on people with few abilities or who are born into a group with a low so cial status, might suffer if they happen to end up as someone with few abilities or belonging to a low-status group. This way of thinking thus helps us transform self-interest into general interest. A similar principle underlies insurances: everybody contributes an equal share, not knowing who will be the one need ing a smaller or larger payment or nothing at all. This justice principle can be threatened when insurances refuse to accept people who are considered high risk (e.g., because they suffer from a chronic illness), or give discounts to those who are unlikely to undergo costly medical treatments (e.g., students).