Political Science 1020E Lecture Notes - Lecture 12: Externality, Distributive Justice, Friedrich Hayek
18 Oct 2016
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October 18, 2016: for utilitaria(cid:374)"s, the idea of di(cid:373)i(cid:374)ishi(cid:374)g (cid:373)argi(cid:374)al utility suggests that income should be distributed, to the happiest people, relatively equally, so that it minimizes net welfare, without being taxed, to marginalized cultural groups. A pure capitalist free market: private property rights. Own land, machinery, labor, raw materials, etc: production for profit. Motive that drives system: distribution by voluntary exchange. Buying and selling on the market: free competition. Free for all in terms of who wants to produce what. A planned economy: state owns all major property, production for needs, not for profit. Literal communism each according to their ability, each according to their needs: distribution by central allocation. Rather than voluntary exchanges, state decides prices and who gets what: state controls what gets produced. (ex. railroads, airports, electricity: some voluntary distribution (charity) (ex. food banks, canadian blood drives, etc. : sale of some goods is prohibited. (ex. plutonium, heroine, crack, suitcase bombs, etc. : some state-enforced monopolies.
