Political Science 1020E Lecture Notes - Lecture 4: Externality, Justice As Fairness, Risk Aversion
5 Nov 2015
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Document Summary
Concept is a central idea of what justice is. Why society cannot be just or unjust: actions, intentions, agency. Why redistributing wealth in the name of social justice could be wrong anyway: liberty, efficiency. Production for profit: incentive to perform is monetary gain. Distribution by voluntary exchange: no one is forced to do a job they do not want to. Free competition: things that cannot compete do not last, improvements need to be made. Markets, by themselves, don"t always function efficiently. The cost or benefit of producing these goods is externalized. Cost nothing to consumer, who would rather not have them (ie. pollution) Goods with positive externalities that cost nothing to the consumer, who wants them. Public goods: if provided, benefit all (ie. street lights) Make it illegal (or more costly) to produce some goods with negative externalities. State provides public goods and taxes citizens to pay for them.
