Suppose there are two possible income distributions in a...

Suppose there are two possible income distributions in a society of ten people. In the first distribution, nine people have incomes of $$\$ 30,000$$ and one person has an income of $$\$ 10,000$$. In the second distribution, all ten people have incomes of $$\$ 25,000$$. a. If the society had the first income distribution, what would be the utilitarian argument for redistributing income? b. Which income distribution would Rawls consider more equitable? Explain. c. Which income distribution would Nozick consider more equitable? Explain.

Suppose there are two possible income distributions in a society of ten people. In the first distribution, nine people have incomes of $$\$ 30,000$$ and one person has an income of $$\$ 10,000$$. In the second distribution, all ten people have incomes of $$\$ 25,000$$.
a. If the society had the first income distribution, what would be the utilitarian argument for redistributing income?
b. Which income distribution would Rawls consider more equitable? Explain.
c. Which income distribution would Nozick consider more equitable? Explain.

Key Concepts

Utilitarianism

Utilitarianism is a normative ethical theory that advocates for actions or policies that maximize overall happiness or well-being. In the context of income distribution, a utilitarian argument for redistributing income would focus on increasing the total utility of society by transferring resources from those with a relatively high income to those with a much lower income, thereby potentially yielding greater satisfaction or benefit to the poorer individuals and enhancing overall welfare.

Rawls' Theory of Justice

Rawls' theory of justice, particularly his difference principle, holds that social and economic inequalities are just only if they benefit the least advantaged members of society. According to Rawls, an equitable income distribution is one that maximizes the welfare of the worst-off. In evaluating income distributions, Rawls would favor the one that ensures the highest benefit for the least well-off individual, promoting fairness and equality in opportunities.

Nozick's Entitlement Theory

Nozick's entitlement theory, as part of his libertarian framework, argues that distributions are just if they arise from legitimate, voluntary exchanges without violating individual rights. According to this view, a just distribution is not necessarily equal but is acceptable if it results from free transactions and the initial acquisition of resources is just. Therefore, Nozick would consider income distributions that emerge from free market processes and voluntary exchanges as more equitable, regardless of pronounced inequalities.

Transcript

00:01 In this question, we have two different societies that we're looking at.

00:04 Each of them both have 10 people, but the distribution of income is different.

00:09 Right.

00:09 So on the left, we have nine people that have $30 ,000 of income each with one person that has $10 ,000.

00:15 While on the right, in this society, each of the 10 people have $25 ,000 worth of income each.

00:23 All right.

00:23 So first, let's talk about the utilitarian argument for redistributing.

00:32 The income for the left society.

00:39 Right, so that's this one.

00:40 This is the one where there's an unequal distribution of wealth, and the basic argument behind this redistribution is the law of diminishing returns.

00:51 Right.

00:51 So this is what, if you're familiar with, ppfs, right, that's what causes our curve to be bowed out, right? and that means that basically $1 ,000 matters more to the poor than to the rich.

01:04 Right.

01:05 So once you're at a certain point where you're so rich, say $30 ,000 in the society, getting a bit more or losing a bit more isn't really going to do much to you.

01:14 It's like a drop in the bucket.

01:16 But if you're that one person who's very poor, the $10 ,000 in this case, then getting a little bit more is going to help you way more than it's going to hurt the people who are losing the money.

01:26 So that's the argument for the redistribution of income due to the law of diminishing returns...

Please give Ace some feedback