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.

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

Answer :-

Utilitarian viewpoint focuses on Greatest Good of Greatest Numbers which means they thinks beyond the scope of individual's interest for Societal Interest. On the other side Rawlsian view point focuses on equality and think about interest of least advantaged class of the society.

Considering both Proposals :

1 ) This proposal is not appropriate according to the utilitarian and rawlsian viewpoint, as taking $ 400000 from the lowest 50% households and distributing it to the economy will make their situation worse and they cannot be given the benefit of economic redistribution by making them more poor thus equality will not come in the society.

2) This proposal is appropriate according to the utilitarian and rawlsian viewpoint because taking 7 million dollers from the highest 20% income households and distributing 2 million dollars from it to low income households will reduce the income gap between these two categories and it insure Equality in the society .