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A. Samuelson, "Evaluation of Real National Income", Oxford Economic Papers (January 1950) and Foundations, Ch. 8. J. de V. Graaff, Theoretical Welfare Economics (1957). This implies certain assumptions about consistent behaviour, absence of certain types of social determination of desires, some similarity of tastes, factor transferability, etc. Few of these assumptions can withstand a more searching critique. But it should be noted that only ordinal utility is involved. With ordinal and interpersonally non-comparable utility the scale used on each axis is arbitrary.

There should be a division of labour between economists and those others, the former recommending improvements in "efficiency" and the latter correcting inequity and injustice which arise from the economists' recommendations. The division oflabour may take either of two forms. We may say that the recommendations of the economists stand without qualifications if we can be certain that those concerned with correcting the distribution have the will and the power always to act appropriately. This may be called the institutional defence.

T. Ferguson and J. Cunnison, The Young Wage-Earner: A Study of Glasgow Boys, Oxford University Press (1951). See Myrdal: "The Trend towards Economic Planning", Manchester School (January 1951 ). Socially sophisticated countries like England, where people know that institutions can be eroded, often refuse to allow rational considerations to erode them. For a recent expression of this view see Milton Friedman, in A Survey of Contemporary Economics, vol. 2, p. ' This, of course, is the classical argument for the greatest happiness principle, for free trade, etc.

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