On 6/26/07, Bill Lear <[EMAIL PROTECTED]> wrote:
I guess you don't care what cost it is for a person to be raped.  Where
is that in your efficiency calculus?  If we include the lives lost in
the conquest of the Americas, that's, what, 50 million people, 10
million, 100 million?  How much do their lives count?  If you say
these are included in "capitalism as a whole" (your phrase), then
shouldn't capitalism as a whole be counted as incredibly inefficient?

using the Kaldor-Hicks efficiency criterion, if the European invaders
could have compensated the losers in the conquest using the benefits
of increased productivity that resulted, then conquest was an
efficiency-enhancing change. The fact that the invaders did not
compensate the invadees is irrelevant to this rule.

using the Pareto criterion, on the other hand, the change was not
efficiency-enhancing: even though the invaders better off, it made the
invadees worse off. Pareto would not approve (though once the change
had occurred, under the same standards it would be verboten to go
back).
--
Jim Devine / "Bong Hits 4 Jesus."

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