ABSTRACT
The economics profession makes a sharp distinction between positive economics, which analyzes the facts, and normative economics, which is based on value judgments. Because positive analysis deals with the facts, it can be scientific, but there is no way to scientifically show that one set of values is any better than another, which distances normative economics from economic science, at least as most economists would see it, and perhaps even relegates it to a matter of opinion. Much to his credit, Leland Yeager has not shied away from normative issues in economics: he has tackled them head-on, and has consistently advocated a utilitarian approach to policy espousal in economics. This paper offers a critical analysis of Yeager’s clear thinking and insightful analysis on normative issues. Yeager’s brand of utilitarianism has much to recommend it. Ultimately, Yeager argues, policy decisions should be judged by their effects on people’s well-being, which is his utilitarian criterion for advocating public policies. Further, Yeager argues, utilitarian arguments underlie many of the alternatives to utilitarianism that others recommend. Perhaps without realizing it, the critics of utilitarianism offer utilitarian arguments to support alternative normative criteria. Yeager says that after careful analysis, people should not be reticent about saying that they recommend particular policies because those policies will increase the well-being of those who are affected by them.
