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Efficiency and economic equality
Author: d. The appearance of Mohammed Saleh
25/02/2015 0:00
In the midst of economic and debate about issues of equality and inequality in income distribution dialogue, there is clear there is a causal relationship between the absolute equality in the redistribution of income and Altdhoralamtaleg in economic efficiency! As someone Economists decades ago, he greater the degree of equality in the distribution of income, the cost Alfrsah
to maximize output or income itself will take to shrink and then decline and deterioration!Often supplied examples of economic models in this regard, which all aim to understand the correlation between maximizing the efficiency and the degree of optimization of economic equality.
Suppose that the national income of the community is something similar to a large piece of cheese, circular yellow, and being prepared on an ongoing basis every year, and the piece that obtained by any of the members of the society represents the contribution of each one of them in the industry or those preparing cheese. Let us assume that the said community decided for reasons of justice and fairness, to get some members of the community on large pieces of cheese and some others on the smaller of the same cheese pieces.
But on the community decided to re-distribute the cheese and in a way that everyone gets an equal cut of the same cheese, regardless of the amount of the contribution of each one of them in the preparation of the large circular disc of yellow cheese, they would reach over time and that the overall size of the cheese may take to subside and contraction from its previous status. And members of the community will find out for themselves, that today's cheese has become smaller than cheese yesterday !.
Here, the fundamental question: Why do you contribute in the making of cheese if you get sufficient and appropriate piece of cheese from my work without making any significant effort in production? The answer very clear and explicit, which is that low cheese ring yellow tablet and shrinking its size is, in essence, that loss in the degree of contribution of individuals in sufficiently productive (no loss in output or annual income as a result of dependency and low contribution to the cheese industry) and the reason for this stems inevitably from the effects harmful to re Distribution of the dysfunctional to stimulate production and suppresses the production and dysfunctional to savings and investment, and not to accept the administrative and regulatory risks leading! Also, shrinking and small cheese pie disk itself also reflects those resources wasted society in the interests of the bureaucratic forces that took over the management of the administrative system for the redistribution of cheese !! But the question remains resounding: What is the size that can be accepted by the society in which the big yellow cheese disk shrink when re-distribution in a manner closer to equality? Will tolerate loss by the community is 10 percent or 20 percent or 75 percent? That the central question facing the main economic decision-makers around the world in search of the ideal size for the distribution of the cheese and the fairness and equality at the lowest possible loss in production efficiency. !!
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Author: d. The appearance of Mohammed Saleh
25/02/2015 0:00
In the midst of economic and debate about issues of equality and inequality in income distribution dialogue, there is clear there is a causal relationship between the absolute equality in the redistribution of income and Altdhoralamtaleg in economic efficiency! As someone Economists decades ago, he greater the degree of equality in the distribution of income, the cost Alfrsah
to maximize output or income itself will take to shrink and then decline and deterioration!Often supplied examples of economic models in this regard, which all aim to understand the correlation between maximizing the efficiency and the degree of optimization of economic equality.
Suppose that the national income of the community is something similar to a large piece of cheese, circular yellow, and being prepared on an ongoing basis every year, and the piece that obtained by any of the members of the society represents the contribution of each one of them in the industry or those preparing cheese. Let us assume that the said community decided for reasons of justice and fairness, to get some members of the community on large pieces of cheese and some others on the smaller of the same cheese pieces.
But on the community decided to re-distribute the cheese and in a way that everyone gets an equal cut of the same cheese, regardless of the amount of the contribution of each one of them in the preparation of the large circular disc of yellow cheese, they would reach over time and that the overall size of the cheese may take to subside and contraction from its previous status. And members of the community will find out for themselves, that today's cheese has become smaller than cheese yesterday !.
Here, the fundamental question: Why do you contribute in the making of cheese if you get sufficient and appropriate piece of cheese from my work without making any significant effort in production? The answer very clear and explicit, which is that low cheese ring yellow tablet and shrinking its size is, in essence, that loss in the degree of contribution of individuals in sufficiently productive (no loss in output or annual income as a result of dependency and low contribution to the cheese industry) and the reason for this stems inevitably from the effects harmful to re Distribution of the dysfunctional to stimulate production and suppresses the production and dysfunctional to savings and investment, and not to accept the administrative and regulatory risks leading! Also, shrinking and small cheese pie disk itself also reflects those resources wasted society in the interests of the bureaucratic forces that took over the management of the administrative system for the redistribution of cheese !! But the question remains resounding: What is the size that can be accepted by the society in which the big yellow cheese disk shrink when re-distribution in a manner closer to equality? Will tolerate loss by the community is 10 percent or 20 percent or 75 percent? That the central question facing the main economic decision-makers around the world in search of the ideal size for the distribution of the cheese and the fairness and equality at the lowest possible loss in production efficiency. !!
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