Justice and Welfare. A Critique of Amartya Sen's Welfare Economics 1

Schwartz examines some of the consequences of the Arrow Impossibility Theorem for Welfare Economics. The theorem, proved by Ken Arrow in 1950, states that it is impossible for a democratic society to apply universally valid criteria of justice or welfare without falling into contradictions and paradoxes. This means that the search for the common good in a democratic society is impossible. However, the concept of social justice is not completely empty, as personal virtues of acting justly and striving for the common good can be applied within institutional frameworks such as private property or the separation of powers. He argues that institutions and general rules, such as the free market or unilateral free trade, can help avoid the paradoxes and contradictions pointed out by Arrow. By focusing on concrete unjust situations and analyzing possible measures to bring about more justice and happiness, they can sidestep the impossibility of applying universal criteria derived from first principles.