Question

Consider the following two income redistribution proposals. Discuss the issues to be considered when thinking about adopting these proposals from the Utilitarian and Rawlsian viewpoints. (3 points each) A) The plan ends of taking $5.6 milllion from the highest 10% income households and $400,000 from the lowest 50% income households and ends up giving $5.5 milllion to the remaining households in the economy. B) The plan takes $7 million from the highest 20% income households and ends up giving $2 million to the lowest 20% households.

Answer 1

Utilitarian viewpoint is moving beyond the scope of one's own interest and taking into account the interest of others where as Rawlsian point of view is promoting the interests of least advantaged members of society and focuses on equality.

Now discussing both proposal:

a) This proposal is somewhat inappropriate because it does not comply with utilitarian and rawlsian, taking 400,000 dollars from lowest 50% income household which making them more non-beneficial category and distributing same income among other category wont bring equality.

b)This proposal is appropriate because it does comply. Lets explain: taking 7 million dollars from highest 20% income households and giving 2 million to lowest households bring reduce the difference between both categories that means promoting the equality.