Can 'inclusive capitalism' pull us back from the brink?

1957 U.S. propaganda poster (NARA)

"Welcome to late-stage capitalism!," DeepKarma tweeted @me earlier this month.

The exclamation was a response to my tweeted complaint that Hertz rental car quoted me a higher price when logged in as a "Gold Plus Rewards Member" than when I compared rates in an anonymous browser.  Dynamic pricing is a known feature of online retailing that rubs people the wrong way yet pours through America's dysfunctional consumer protection sieve.  I did not expect it to be a feature of Hertz's so-called "loyalty program."

Pushing the button of my angst over corporatocracy, DeepKarma's term intrigued me. My subconscience might have remembered Annie Lowrey's "Why the Phrase 'Late Capitalism' Is Suddenly Everywhere" in The Atlantic in 2017, subtitle: "An investigation into a term that seems to perfectly capture the indignities and absurdities of the modern economy."

The term dates to early 20th-century German economist Werner Sombart. Twentieth-century socialists mispredicting the demise of capitalism were fond of the term, which in turn made it unwelcome in polite democratic company.  Now our feverish commitment to deregulation, dismantling of social safety net, and bottom-line-driven abuse of human capital, etc., resulting in, inter alia, an enormous wealth gap and aforementioned charade of consumer protection regulation, have brought the term back into fashion.  I'm an economic conservative, by the way, but there is no free market if people are not free to enter into it and make free choices once they're there.

Coincidentally, I recently mentioned the work (and kind support for my work) of Syracuse law professor Robert Ashford.  It happens that Ashford is a leader of a community of scholars who have for decades been advocating, often screaming into the wind, for economic policy solutions to come from economics itself.

More often than not, the field of economics posits only descriptive research or resorts to classical norms such as laissez-faire regulatory policy without critical introspection.  Ashford is the founder of interdisciplinary "socio-economics," which strives for "inclusive capitalism": in my words, to use economic science to actually make life better for everyone, rather than for some at the expense of others.

A short but steep learning curve is required before one digs into the potential of socio-economics, in the vision of Ashford and colleagues.  Here is an introductory kit:

• Martin Walls, Professor Robert Ashford’s "Inclusive Capitalism" Gains International Support, Syr. Univ. News (Sept. 27, 2017).
• Letter, Economists Endorse Professor Robert Ashford’s Inclusive Capitalism, Apr. 14, 2021.
• Nicholas A. Ashford, Robert Ashford, & Ralph P. Hall, Broadening Capital Acquisition with the Earnings of Capital as a Means of Sustainable Growth and Environmental Sustainability, Eur. Fin. Rev., Oct.-Nov. 2012, at 70.
• Ralph P. Hall, Robert Ashford, Nicholas A. Ashford, & Johan Arango-Quiroga, Universal Basic Income and Inclusive Capitalism: Consequences for Sustainability, 11:16 Sustainability 4481 (2019).

As these titles indicate, the interdisciplinary nature of socio-economics and inclusive capitalism make the sub-field accessible to scholars, for both understanding and participation, in a range of disciplines, both soft and hard sciences, besides law and economics, and also understandable to anyone.  Professor Ashford is always willing to invest time and energy to help potential believers come up to speed, and he is a captivating speaker for conferences and classes.

Springer 'Law and Development' book: Introduction is now free for download

Recently I announced the publication of Law and Development, a new collection of research articles from multi-national and multi-disciplinary perspectives, as well as my own contribution, with Gaspar Kot, on comparative access to private-sector information in South Africa and Poland.  Publisher Springer has now authorized free public download, via SSRN, of the book's Introduction, from the co-editors, Piotr Szwedo, Jagiellonian University, Poland; Dai Tamada, Kobe University, Japan, and me.

Please enjoy our Introduction to Law and Development: Balancing Principles and Values.

Multidisciplinary 'Law and Development' book tackles hard problems from principled perspectives

[UPDATE, March 31, 2020: The Introduction to Law and Development is now available for free download from Springer, via SSRN.]

I am thrilled to announce the publication of Law and Development: Balancing Principles and Values, from Springer, a publication in the Kobe University Monograph Series in Social Science Research (flyer). While I was privileged to serve as a contributor and co-editor, with Professor Dai Tamada (law site), of Kobe University in Japan, this book has been a project of passion for our lead editor, my inspiring colleague and friend, Professor Piotr Szwedo. On the law faculty of the Jagiellonian University (UJ) in Poland, Professor Szwedo serves as head of the OKSPO Center for Foreign Law Schools and co-director of UJ law programs with the Columbus School of Law at The Catholic University of America, and the Université d’Orléans.

Born of an international conference organized by Professor Szwedo at UJ, this ambitious multidisciplinary collection examines the problem of "development" across the world especially from perspectives informed by morality and ethics. Here is the jacket précis:

This book examines the concept of ‘development’ from alternative perspectives and analyzes how different approaches influence law. ‘Sustainable development’ focuses on balancing economic progress, environmental protection, individual rights, and collective interests. It requires a holistic approach to human beings in their individual and social dimensions, which can be seen as a reference to ‘integral human development’ – a concept found in ethics. ‘Development’ can be considered as a value or a goal. But it also has a normative dimension influencing lawmaking and legal application; it is a rule of interpretation, which harmonizes the application of conflicting norms, and which is often based on the ethical and anthropological assumptions of the decision maker. This research examines how different approaches to ‘development’ and their impact on law can coexist in pluralistic and multicultural societies, and how to evaluate their legitimacy, analyzing the problem from an overarching theoretical perspective. It also discusses case studies stemming from different branches of law.

Prof. Szwedo

Prof. Tamada

In organizing the book's 13 contributed chapters, we envisioned and executed on four threads of approach: (1) conceptualizing development, (2) financing development, (3) development and society, and (4) applied sustainable development.  Scholars, lawyers, and scientists who approach development from diverse professional, geographic, and experiential perspectives all will find compelling inroads in this volume, which ranges from the highest echelons of philosophical thinking about the human condition to the most earthbound problems of how many fish swim in the sea.  With DOI links, here are the contents and contributors:

1. “Law & Development” in the Light of Philosophy of (Legal) History, by Tomáš Gábriš, Faculty of Law, Comenius University in Bratislava, Slovak Republic.
2. Populorum Progressio: Development and Law?, by Christine Mengès-Le Pape, University Toulouse, France.
3. Luigi Sturzo’s Socio-economic Development Theory and the Case of Italy: No Prophet in His Homeland, by Flavio Felice, University of Molise, Campobasso, Italy; and Luca Sandonà,University of Trieste, Trieste, Italy.
4. International Financial Aid, Catholic Social Doctrine and Sustainable Integral Human Development, by George Garvey, The Catholic University of America, Washington, D.C., USA.
5. Common but Differentiated Responsibilities for Developed and Developing States: A South African Perspective, by Zuzana Selementová, LL.M. (Cape Town), Valouch, and Attorneys-at-Law, Prague, Czech Republic.
6. Must Investments Contribute to the Development of the Host State? The Salini Test Scrutinised, by Dai Tamada, Graduate School of Law, Kobe University, Japan.
7. Water: The Common Heritage of Mankind?, by Franck Duhautoy, University of Warsaw, Centre of French Civilisation, Poland.
8. Private-Sector Transparency as Development Imperative: An African Inspiration, by Richard Peltz-Steele, University of Massachusetts, North Dartmouth, USA; and Gaspar Kot, Jagiellonian University, Kraków, Poland.
9. Between Economic Development and Human Rights: Balancing E-Commerce and Adult Content Filtering, by Adam Szafrański, Faculty of Law and Administration, University of Warsaw, Poland; Piotr Szwedo, Faculty of Law and Administration, Jagiellonian University, Kraków, Poland; and Małgorzata Klein, Faculty of Geography and Regional Studies, University of Warsaw, Poland.
10. A Comparative Law Approach to the Notion of Sustainable Development: An Example from Urban Planning Law, by Ermanno Calzolaio, University of Macerata, Italy.
11. Challenges Concerning ‘Development’: A Case-Study on Subsistence and Small-Scale Fisheries in South Africa, by Jan Glazewski, Institute of Marine & Environmental Law, University of Cape Town, South Africa.
12. Economic and Social Development in the Republic of South Africa’s New Model of Mineral Rights: Balancing Private Ownership, Community Rights, and Sovereignty, by Wojciech Bańczyk, Jagiellonian University, Kraków, Poland.
13. Sustainable Development as a New Trade Usage in International Sale of Goods Contracts, by Daniel Zatorski, Faculty of Law and Administration, Jagiellonian University, Kraków, Poland.

An introduction from the editors ties the work together.  Previews (with abstracts) of each chapter can be viewed from the book's home page at Springer (or from the DOI links above), where also a flyer about the book can be downloaded.  Working on this project has been a tremendous education for me on law and development.  My congratulations and deep gratitude extend to Professor Szwedo, Professor Tamada, and every one of the contributing authors.

Teachable torts: Samsung satellite crash-lands in 'paradigm of reciprocity'

"Strict liability" in tort law is liability without fault.  That is, more precisely, it is liability without regard for fault.  Lawyers and social scientists have much debated the theoretical foundation and doctrinal justifications for strict liability.  After talking recently with a scholar-colleague in Honduras, I think strict liability may be on the rise in a new class of cases in Latin American environmental law.  Meanwhile, we use strict liability, in the United States, in certain classes of tort cases, such as when the defendant is a seller of a defective product, or the defendant was engaged in an "abnormally dangerous" activity, such as dynamiting.

Professor George Fletcher in 1972 posited one theoretical basis for strict liability as the "paradigm of reciprocity":

The general principle expressed in all of these situations governed by diverse doctrinal standards is that a victim has a right to recover for injuries caused by a risk greater in degree and different in order from those created by the victim and imposed on the defendant—in short, for injuries resulting from nonreciprocal risks. Cases of liability are those in which the defendant generates a disproportionate, excessive risk of harm, relative to the victim’s risk-creating activity. For example, a pilot or an airplane owner subjects those beneath the path of flight to nonreciprocal risks of harm.

The downed plane is the paradigmatic paradigm exemplar, albeit tragic.  But space news from a Michigan backyard, where no one was hurt, provides this week a happier occasion to consider the professor's proposal.

Mass. supreme court: MIT owed no duty in suicide case

Today the high court of Massachusetts held no duty, as a matter of law, in a wrongful death case of attenuated duty and causation in which the plaintiff sought to hold the Massachusetts Institute of Technology liable in negligence for a struggling student's suicide.  The court left the door open for proof of a special relationship on different facts.

Tort watchers and university counsel near and far have been awaiting the decision in Nguyen v. Massachusetts Institute of Technology, No. SJC-12329 (May 7, 2018).  The November 7 oral argument in the case is online here.
 
A university-student relationship is not completely outside the custodial scope that gives rise to a duty in tort law in K12, the court held; nor is it completely the same.  Rather, the court "must ... take into account a complex mix of competing considerations.  Students are adults but often young and vulnerable; their right to privacy and their desire for independence may conflict with their immaturity and need for protection."

With regard to a suicide risk, reasonable foreseeability is key to the special relationship/duty analysis.  Relevant factors include whether student reliance on the university impeded others who might have rendered aid, as might occur in a student-residential environment; and, from research by emerita Washington & Lee University Law School professor Ann MacLean Massie, the court quoting,

"degree of certainty of harm to the plaintiff; burden upon the defendant to take reasonable steps to prevent the injury; some kind of mutual dependence of plaintiff and defendant upon each other, frequently . . . involving financial benefit to the defendant arising from the relationship; moral blameworthiness of defendant's conduct in failing to act; and social policy considerations involved in placing the economic burden of the loss on the defendant."

In discussing the flexibility of this analysis, Judge Learned Hand's famous BPL test made an appearance (a test customarily directed to breach rather than duty), off-setting the gravity of a suicide by probability, and balancing the result against the burden on the university of employing effective preventive measures.  The court also emphasized the dispositive nature of actual knowledge: "Where a university has actual knowledge of a student's suicide attempt that occurred while enrolled at the university or recently before matriculation, or of a student's stated plans or intentions to commit suicide, the university has a duty to take reasonable measures under the circumstances to protect the student from self-harm."

In the instant case, "Nguyen never communicated by words or actions to any MIT employee that he had stated plans or intentions to commit suicide, and any prior suicide attempts occurred well over a year before matriculation."  He also strove to partition his mental health treatment from his academic life.

The court upheld summary judgment for the defendant on the tort claims as a matter of law.