Political Science 1020E Lecture Notes - Lecture 12: Distributive Justice, Justice As Fairness, Market Failure
15 Apr 2016
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Document Summary
For utilitarians, the idea of diminishing marginal utility suggests that income should be distributed: Individual corporations and rms own the land, there are private property rights. Goods are distributed by voluntary exchange (laws of supply and demand) People produce on the basis of satisfying people"s needs, not for pro ts. Goods are distributed by central allocation, the state sets the prices. The state controls what gets produced according to a central plan. Some state owned enterprises (soes), collective ownership, government owns key structures such as roads although private property rights apply too. Sale of some goods is prohibited (ex: crack cocaine). Hayek says they may not be perfect but they are the best way to satisfy people"s wants. Markets convey information (allows producers to understand where demands lie through price system) Pareto = someone being made better off without making anyone else worse off. The biggest symptom of market failure is the presence of corporations.
