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>This is how the system currently functions It's also the system that makes the most theoretical sense given the First and Second Welfare Theorems, which state
by yetanotherphd 13y ago
>This is how the system currently functions
It's also the system that makes the most theoretical sense given the First and Second Welfare Theorems, which state (or more accurately strongly imply) that any desired outcome can be achieved by the free market, and government redistribution.
"killing the planet" is an externality that can be addressed by environmental legislation (e.g. a carbon tax).
- grecy 13y agoAnd how would you say it's working out for America vs. all the other Developed countries? One has to wonder what the end-game will be,
- yetanotherphd 13y agoThere is a distinction between free-market principles, and the way people on the right use free-market rhetoric to justify redistributing less money from the wealthy to the poor. There is nothing that I have said that would rule out a highly progressive tax system, and a generous welfare system. In fact that is exactly what I would recommend. I don't think the US is particularly free economically. It is true that most developed countries have higher minimum wages and, for example, more powerful unions, but this is not, in my opinion, why they have less inequality. They have less inequality because they have more progressive tax systems, and more generous welfare systems. Also the US has more cultural diversity, and many people (e.g. living in poor rural areas) could earn more money if they were willing to choose a very different lifestyle.