ECON 1100 1nd Edition Lecture 35 Outline of Last Lecture I. Incomea. Laborb. Capitalc. TransferOutline of Current Lecture I.RedistributionCurrent LectureI. RedistributionWhy is income lost in redistribution?Taxes: it costs something to run redistribution (not large part)People hide money to receive helpLack of efficiency: incentive effects keyHow much to redistribute?Various factors to considerHow high is the level of absolute povertyWhy does one have less than otherLevel of relative povertyRich may/may not want to give to poorWhy should rich person give money to poor?Robert Nozick – Anarchy, Utopia and the StateAnti-redistributionaryThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Equal redistribution doesn’t matter, how you get there doesFair way = fair & vice versaUnfair if forced to do something against willVolunteering to participate = goodJohn Rawls – A Theory of JusticeSuppose before you’re born, a greater power pulls you to outer space to look at the world and a spin a wheel to decide your fate – you’ll be either rich or poorRearrange income to maximize well-being of minimum (worst off/poorest) person in
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