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I think a system where one persons gets literally all the wealth would also be difficult to enforce or sustain. However, without getting bogged down in the det
by jlongr 7y ago
I think a system where one persons gets literally all the wealth would also be difficult to enforce or sustain.
However, without getting bogged down in the details of the implementation, I think GINI-1 would result in a society where no one has incentive to work because one person gets all of the benefit of that work.
Whereas with GINI-0 everyone benefits from their work, and anyone who produces more value than most others is still incentivized to work because they will still see a marginal gain in wealth, albeit reduced from what they would normally earn in a higher inequality system since it is somehow redistributed equally to everyone.
Perhaps the goal is not GINI-0 but as close as possible to it.
- sokoloff 7y agoHow much extra effort would you personally put in if I guaranteed that you got your “fair share” which just happened to be 4/350,000,000 assuming you had a family of four? If you worked really hard to create an extra $1,000,000 in value, where shall we send your family literally the additional penny?
- mamon 7y agoAnd that's exactly why perfect GINI score is not 0, but around 0.25 - it balances those two goals: ensuring that everyone has their needs met and still has motivation to put in extra effort.