Thursday, November 13

Fairness principle

Utilitarianism – equal economic outcomes
Each individual has same amount of resources.

Problem:

  • It is a tradeoff between fairness and efficiency as transfering wealth from the rich to the poor lead to inefficient use of captial and labour.

Symmetry principle – equal economic opportunity
Individual in similar situation (in terms of their contribution to the economy) get the same value of goods and services.

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