Many government social welfare program redistribute income from the rich to poor. a) does the utilitarian...

Many government social welfare program redistribute income from the rich to poor.

a) does the utilitarian social welfare function support such program? Why?

b) Does rawlsian social welfare function support such program? Why?

In your answer, define each social welfare function, and the answer the question

Solutions

Expert Solution

Social Welfare Function

Social Welfare Function is one of the main and most important functions in Welfare Economics. It helps in ranking the social states of the society as less or more desirable or indifferent for every possible pair of social states. It is the analogos to the consumer theory. Representing the prospective patterns of collective choice as to alternative states is one of the use of a social welfare function.

Utilitarian Social Welfare Function

Utilitarian Social Welfare Function is one of the Cardinal social welfare function which measures social welfare as the total or sum of individual incomes. Income distribution is not taken into account here, which is baseless as here maximising the total income of the people in the society is given importance. Transfer of income whether from rich to poor or vice versa is not distinguished here.Overall welfare is calculated.

If a government redistributes income from rich to poor then in such a situation the Utilitarian Social Welfare function will support this as the total utility of the society will increase as a whole. As it is related to the overall welfare of the society it can be measured by taking the average of inidividual incomes.

Rawlsian Social Welfare function

This welfare function is based on the philosophical thoughts of John Rawl. It measures the welfare of the society on the basis of the welfare of the least well off individual member of the society. Here maximising the income of the poor is given due importance regardless of the income of the other groups.

If a government redistributes the income from rich to the poor then in such a situation the Rawlsian Welfare function will also support this as the aim of this welfare function is to support the poor of the society. It does not value whether the income comes from the rich or any other class but the least well off class of the society is given importance and their welfare is taken into consideration which in turn takes the overall welfare of the society.

Rahul Sunny answered 1 year ago

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