Political Science 1020E Lecture Notes - Lecture 4: Pareto Efficiency, Effective Demand, Market Failure
10 Dec 2016
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Document Summary
Social justice the distributions and burdens of social cooperation: duty for charity morally good, cannot be forced. Rawl says justice is the most important truth of systems. Justice is so important, demands of justice can be forced. Justice is connected to duties, meant to identify the most important duties. Nobody intends the distribution of wealth in society. Society is not an agent, social justice is a mirage. Why redistributing wealth in the name of social justice would be wrong anyway: Liberty: everyone should have their own choices to make without interference. Efficiency on the market: state planned redistribution is inefficient distorts market outcomes. Private property rights: individual firms owned (land, labour, technology, raw materials) Right to use what you own, right to destroy it, sell it (many options) Distribution by voluntary exchange: free exchange on the open market, laws of supply and demand. Markets convey information: through the price system what to produce, what is demanded.
