00:01
Hello students, so today we will be discussing few statements or few comments that are being made by the individuals or the government or the statisticians who have relevant interest in the context of income inequality and income distribution in a nation.
00:24
So let's start.
00:26
So our first comment or a statement is that in doing everyone, with equal income will make for every unequal enjoyment and satisfaction.
00:38
So, this statement is a wrong statement because the distribution of income can ensure equal enjoyment and satisfaction.
00:49
If the marginal utility theory is being used, okay, so if the marginal utility theory is being used, then it can be argued that by equalizing the incomes.
01:18
If equal incomes are there in a nation of all the individuals, then there is a possibility that the total utility for all the individuals is maximized.
01:34
So the total utility for all the individuals can be maximized if there is an equal income distribution.
01:40
So this assumes that everyone has identical diminishing, marginal utility in money schedules.
01:52
So, therefore, if everyone is endowed with equal income, and this would make equal enjoyment and satisfaction.
02:04
Okay? so let's discuss our second comment or a statement that says equality is a superior good, the richer we become, the more of it we can afford.
02:17
So the statement could be explained as the, that the lessening of poverty in a nation, would provide a host of economic benefits to a fluent members of the society.
02:30
It could include social, peace, physical security and perhaps the intangible satisfaction of living in a more equitable society.
02:38
Therefore, the more affluent or the more richer you become, then there is a willingness by an individual to spend more.
03:14
As they can purchase these products.
03:20
Okay? so next comment we would be discussing is that the mob goes in search of bread and it means it employs is generally to rig the bake teas.
03:35
So the mobs that commonly exhibit are marked preference for present over their future consumption.
03:42
So, many conservatives have contended that the income redistribution schemes are resulting from democratic decision -making power that is making the suffer from the similar failing by decreasing the incentive to accumulate capital in order to provide present consumption to the poor.
04:05
So this could be meant that the redistribution schemes are not being followed.
04:12
Are not being guided properly and misguided, though then it may or may not be the situation.
04:35
Okay, so our next statement is that some freedoms may be more important in the long run than freedom from what from want on the part of every individual...