Fair Trade and justice: a comment on Walton and Deneulin

In this article we first point out that the different conceptualisations of Fair Trade, which are sometimes analytically contradictory, actually form a coordinated set. Understanding the Fair Trade project is impossible without taking these interlinked conceptualisations into consideration. Second, this set basically forms a mechanism of structural, institutional and moral reforms that guide actions. In this way Fair Trade sets out to produce less injustice than is usually the case with the structures and institutions that govern conventional trade. Nevertheless, it does not try to define what a just society is or even to perfectly define ‘fair trade’. This implies the adoption of a comparative justice angle. It is precisely by linking comparative individual situations with the structures that produce these situations that relative justice can find its strength and purpose.     

Repairing the safety net: Is the EITC the right patch?

Using data from the Michigan Panel Study of Income Dynamics, this article estimates the impact of the Earned Income Tax Credit (EITC) on economic risk. Risk is measured through the variance of full income (income holding labor supply constant). The results show that the EITC significantly reduces economic risk, but its effects are weaker dollar for dollar than traditional means-tested programs like Food Stamps. The difference is not statistically significant, however. Moreover, for many middle-class people, the risk-reduction benefits of the EITC exceed the tax burden it imposes. This is less true of means-tested transfers. These results are significant for the politics of antipoverty policy. They show that a real-world antipoverty program can generate enough middle-class economic security to build for itself a solid base of political support.