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Yes. I think its an important distinction because deadweight losses represent wealth that is lost to the world, whereas the surplus question is not about creat
by andrewmutz 4y ago
Yes. I think its an important distinction because deadweight losses represent wealth that is lost to the world, whereas the surplus question is not about creating wealth, just moving it around.
We should always strive to eliminate deadweight losses because it makes the world richer. Moving the surpluses around is not making the world richer and is just just redistribution.