Positive and Normative concepts - “Fairness”

 Are the government’s economic policies fair?

 Is that a testable, positive economic statement? You might be considering this question at the very start of an economics course, or you might be further on, and carefully considering issues surrounding inequality in the distribution of income and wealth.

The short answer is ‘no’ – it’s a normative statement. The concept of ‘fairness’ is entirely subjective. The statement cannot be tested. Consider this text which I've adapted from The Economist:

It isn’t surprising that Britain’s coalition Government should have seized upon the slogan “tough but fair” to describe its programme of higher taxes and even sharper spending cuts. A sense of fairness, as any parent knows, develops irritatingly early on and children seem hard-wired to demand it. Yet the fact that everyone believes in in fairness is a clue to what’s wrong with the notion. “Fairness” suits the coalition so well not just because its meanings are all positive, but also because they are wide ranging. To one lot of people, fairness means establishing the same rules for everybody, playing by them, and letting the best man win and the winner take all. To another, it means everyone getting equal shares. These two meanings are not just different: they are opposite.

That doesn't mean you can’t be cross about rising inequality in the distribution of wealth (you probably should be), a point which is communicated clearly and effectively in this Guardian animation video clip. But as an economist, it’s difficult to make the case for “fairness”, until you establish what you mean by the term.

If you want to review the topic, there’s a game here, and a helpful introduction and questions here.