Welfare economics and the theory of social choice normally rest on a philosophical assumption of “welfarism” — that is, the premise that evaluation of a state of affairs can be based solely on individual utilities. This essay explores recent controversies in welfare economics that challenge or transcend welfarism. This summary concentrates on the debate over the reconciliation of individual rights and liberties with utility maximization, the principal topic of the essay. The author’s much briefer discussion of the measurement and evaluation of the standard of living has been omitted.
