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Accounting Quote by John Rawls

“There is a divergence between private and social accounting that the market fails to register. One essential task of law and government is to institute the necessary conditions.” quote by John Rawls
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“There is a divergence between private and social accounting that the market fails to register. One essential task of law and government is to institute the necessary conditions.”

John Rawls

About This Quote

Source Book: A Theory of Justice, 1971

Markets miss the gap between individual and societal costs; law must create conditions to address it.

In simple terms: Markets ignore social costs; law must intervene.

Key Takeaway

Implement policies to align private and social interests.

Themes

economics law justice public policy

Mood

analytical concerned

Type

philosophical policy

When to use this quote

  • tax reform
  • environmental legislation
  • corporate governance

Key Concepts

externalities government regulation social welfare

Questions to Reflect On

  • What mechanisms can bridge private and social accounting?
  • How can law incentivize responsible behavior?
A Different Perspective

Political resistance may hinder reforms.

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