John Rawls, an American philosopher, considered the broad question of what constitutes a fair system and his answer has implications for the capital markets. His 1971 book, A Theory of Justice identified two principles that would produce a just, moral society.  

Rawls explored the challenges societies would face when adopting these principals. One consideration was whether it was easier to construct fair systems in a wealthy society than in a poor one. He felt wealth was not a requirement—that poor societies can create just systems. In fact, he felt that rich ones could be hindered in their ability to create them because great wealth can create “meaningless distraction at best, if not a temptation to indulgence and emptiness.” 

To create a just society, Rawls believed it is necessary to understand that all people want “meaningful work in free association with others” and for these associations to be regulated “within a framework of just, basic institutions.” The mark of a just system isn’t equality of outcomes. Rather, it is the ability of anyone to self-actualize, as Abraham Maslow famously described in his hierarchy of needs.

The School of Life has a video about Rawls on YouTube that is well worth six minutes of your time.

It opens up by saying “Many of us feel that our societies are a little –or even plain totally—unfair. But we have a hard time explaining our sense of injustice to the powers that be in a manner that sounds rational and without personal pique or bitterness.” 

As the video indicates, Rawls had a practical approach to create a just society: