ECON BC 2075y Lecture Notes - Lecture 5: Pareto Principle, 2Degrees, Externality
29 Sep 2016
School
Department
Course
Professor
Document Summary
Example of alt-right and rise of right wing nationalism. Efficiency vs empathy circular system / externalities. Govt can act in way to change or shape our preferences into something else. Try to deal with positive and normative but have trouble with the morals of it because it"s personal. If people aren"t happy it has to do with pareto efficiency preferences. You can"t do something without upsetting someone else. Ex. alt right - even though not most benevolent source of beliefs. When considering most efficient outcome, only narrow group"s well being/ preferences actually matter. Nothing to distinguish whose preferences take precedence. The case of immigration, immigrants and welfare. Marvin goes to store to get cheap bread. Sam prevents marvin from getting bread for some reason and marvin dies. Metaphor of how us is preventing immigration. Pareto efficient nobody else can be made worse off. Pareto principle: pareto efficient states are better than non pareto efficient states.
