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Pareto
If we can make one person better off without making anyone else worse off, do it.
EFFICIENCY is king. If there’s a loser, compensate. If no compensation … no guidance I give to others because I’m happy
Utilitarian
The greatest happiness for the greatest number
U1 + U2 + … + U150000000 If utility shows marginally
decreasing returns to income, can trade off utility
I give to others if their gain is greater than my loss.
Notice: ends justify means
Two “Utilitarians”
Singer If we can prevent a great deal of misery
without sacrificing anything of comparable moral value, we should.
Each person has a duty to maximize SWF Give 5%, 25%, a lot more, to reduce hunger.
Two “Utilitarians”
Singer If we can prevent a great deal of misery
without sacrificing anything of comparable moral value, we should.
Rawls Veil of ignorance 1 – Be free 2 – Choose the distribution to make the least
happy person as happy as possible Max(U1), then max (U2), then max (U3),
then….
Non-Utilitarian
1 – Deontology: the study of duty This is what you ought (not)
to do This is what a good person
would do. Doing something you should that
you don’t want to? How holy!
I give because I ought to.
Non-Utilitarian
1 – Deontology: the study of duty
2 – Virtue Ethics: the virtuous person Who are you becoming? “Not virtuous acts, but being a virtuous
person” – Schiller I give because I want to be a
compassionate person.
Non-Utilitarian
1 – Deontology: the study of duty2 – Virtue Ethics: the virtuous person
3 – Rights Duty holder and duty bearer Charity vs. Entitlement vs. Right
India ~2001
“Non”-Utilitarians s
1 – Deontology: the study of duty2 – Virtue Ethics: the virtuous person3 – Rights
4 – Sen capabilitiesDevelopment is capability or freedomTransform resources into valuable activitiesMulti-dimensional
Non-Utilitarians
1 – Deontology: the study of duty2 – Virtue Ethics: the virtuous person3 – Rights4 – Sen capabilities
5 – NozickFreedomIs the process fair?Was the start fair?
INEQUALITY AND POVERTYIn our Classroom!
Inequality: Kuznets
Richest/PoorestRichest 1 / Poorest 1 = 42/0Richest 10%/Poorest 10% = 119/0.3 ~ 376
R25%/P25% = 275/47 = 5.9
Inequality: Gini
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 310.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Poverty line
Right now, 26 points/46 At end of the semester, 60/100
Headcount ratio: 68% Poverty gap: 46% Pov gap squared: 31%
Nozick says
You all started fairly. The process that
determines grades was fair and impartial.
The grades as they stand are equitable.
Karl Marx - Egalitarian
No student owns their own points. The entire class owns all points.
“From each according to his ability, to each according to his need.”
Marxism in Practice
Now the distribution has
Marxism in Practice
Now the distribution has
everyone flunking.
Marxism in Practice
Now the distribution has
Marxism in Practice
Now the distribution has
everyone flunking.
Marxism in Practice
Now the distribution has
Marxism in Practice
Now the distribution has
everyone flunking.
Marxism in Practice
Now the distribution has
Marxism in Practice
Now the distribution has
everyone flunking.
Marxism in Practice 20% of the points go to the government. Now the distribution has everyone flunking.
Winston Churchill:The inherent vice of capitalism is the
unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.
Rawls – Poorest of Poor
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 310.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Robin Hood – Help Least-Poor
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 310.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Before and After
A
C
D
F
A B
C
D
F
Singer
What is my duty to help my fellow students who aren’t doing as well as I am?