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Lecture 9

ECON BC 2075y Lecture Notes - Lecture 9: Positional Good

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ECON BC 2075y
Belinda Archibong

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Rawls Theory of Justice Part II
Two principles of justice
Difference principle/maximin criterion
Critique of Rawls
Education- College degrees as a positional good?
What matters is not how much you have but how much you have relative to other
Everyone has a college degree now → unemployment rose
Unequal outcomes in terms of education
Education only valuable when it creates a differentiation between you and other
Argument→ inequality in things like education is necessary
Scarcity in degree creates value
Widening gap between income of parents investing in education
Is Inequality Bad?
Social divide
Spatial clustering by state, neighborhood, etc
legal/ social
Network effects/externalities
The more people use something, more useful it comes
Cars and public transport, Telephones and interviews
Radio, tv, internet and participation in social inclusion
Effects of inequality that have nothing to do with poverty
Inequality between top 10%
Take out loans to compete w/ other richer ppl around you
Effects of Inequality- Crime
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