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His
theory is an attempt at removal of some of the shortcomings
of Rawls' theory. Dworkin takes a so called envy-test
as the criterion of just distribution. This test says that
distribution of goods is not satisfactory if after it a person
envies someone else because a bundle of resources he has received.
This problem is resolved with the help of an auction in which
everyone gets the same initial amount of money that enables
him to bid for all the resources that are at disposal of this
community. The meaning of this procedure is to ensure that
an individual must sacrifice more of his initial resources
to get a good that is highly valued by others, and much less
if he bids for something that is not so popular. However,
such an auction could satisfy the envy-test only if there
were no great differences among people in respect of their
personal abilities and talents. Since this is not so, and
since Dworkin wants to prevent that anyone suffers or profits
because of his (undeserved) natural abilities, a new procedure
must be introduced. Thus, the auction is supplemented by insurance.
That is, it is supposed that people in the moment of auction
do not know whether they have some mental of physical handicap,
whether talents they posses are in demand on the market or
not, and the like. In such circumstances everyone rational
would like to buy insurance against these risks, so one part
of their initial sum intended for the auction would be used
for this purpose too. The amount invested for insurance would
go to the common fund from which those who turn to be handicapped
or insufficiently talented would be supported. The main ambition
of this theory is to remove impact (on the distribution of
goods) of the factors that are not under control of individuals
and to allow influence only of such ones that are under personal
control. Dworkin's scheme has to be implemented in practice
by complex tax and money-transfer system of the welfare state.
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