Inequality (1 Viewer)

[jayz]

Any suggestions on the 'possible' social benefits for income inequality, other than ppl will be willing to work harder to become rich and famous (which obviously is aload of BS)

 

[AGB]

that the wealthy will have a higher standard of living.....thats about the only one......also, the one you mentioned of people willing to work harder is more of an economic benefit rather than a social benefit.......

i doubt that you will get asked a question about the benefits of income inequality as there are very very few.........

 

[timmii]

Higher rates of saving ---> greater levels of investment (since mpc decreases as income rises).

Social benefits can be the development of better quality schools/hospitals etc and less pressure on public resources if people who are wealthier are willing to pay more?

 

[mr_speedy]

also higher national saving means less borrowing from overseas = decreased foreign debt

 

[jayz]

true
would u consider this to also be correct?
income inequality could be a benefit, as high income earners will make better use of their resource (i.e. money) as they r generally better educated comparing to lower income earners? (i know this argument is totally flawed, but r there any similar arguments like this, to show that income inequlity has its benefits, for instance, industries operating at technical optimum level (economies of scale) will be more resource efficient than newly promoted industries.

 

[Over97]

workforce more mobile

 

[AGB]

most of the reasons posted have been economic benefits, not social benefits.....

 

[timmii]

another economic "benefit" may be higher levels of consumption...the "keeping up with the jones' " phenomenon...People trying to prove, maintain, improve their social status through conspicuous consumption is more prevalent in societies where there *is* a degree of social stratification...?

Ok i admit it...I'm grasping for straws here

 

[Over97]

economic benefits leads to social benefits my good man

 

[dirty dave]

i dont think there are any social benfits to inequality in the text books

 

[jayz]

Dixon's book's descriptions with inequality~{!/~}s social benefits are considered to be trash arguments by my teacher. However, even though none of Dixon's comments are practically possible in the real world, which theoretical answers would examiners accept in HSC with benefits to social inequality?

 

[dirty dave]

sorry i was mistaken.
social benefits inculde
1 "the argument of equality of opportunity. This inculde everyone having access 2 the same opp"
2, "procedure justice - if the income and wealth distribution is the result of a process, the rules of which everyone regards as fair,then the outcome is also fair and just"

 

[Bambul]

Income inequality in itself is not necessarilly a bad thing if it represents everyone's individual tastes in what job they want to work in and how many hours they put into it (vs leisure time).

So income inequality can be seen as the market functioning properly.

On a separete but somehow related note: there have been studies to see how an increase in income affects people's happiness. They found that when you increase an individuals income, they become happier. But if it's the whole of society whose income increases, then that increase in their happiness does not materialise. This is for income of above US$5,000 p.a. as below this amount people do not compare themselves to society but rather how many of their basic needs they can meet.

 

[jayz]

so, u mean, income inequality increases population's utility?
sounds really weird, but practical, would the HSC examiners accept that as a theoretical answer to a question on soical benefits of inequality?

 

[timmii]

On what Bambul was saying...I think there was a study reported in the Economist last week. In America, people were offered whether they would rather have $100,000 increase in their salary if everyone else got $200,000 or a $50,000 increase if others got a $25,000 increase, most people would take the latter. They did find however that people don't compare their leisure times so competitively. Between taking an additional 4 weeks when everyone else got another 8 weeks, or taking an additional 2 weeks when everyone else got 1, most people chose the former. hmmm sidenote. But i thought it was interesting! Relate it to marks i suppose. 85% feels pretty good until you find out the class average was 90% right?

 

[kt san]

as a social benefit, can us say that by reforcing the status quo, everyone in their place and hierachy, people are more accepting to what they have and appreciate that they're not lower?