Question

1. Consider the utilitarian (Benthamite) social welfare function and the Rawlsian social welfare function.
   1. Which one is more consistent with a government that redistributes from the rich to the poor? Which is more consistent with a government that does not do any redistribution from the rich to the poor?
   2. Reconsider your answer to part (a). Show that either of the two social welfare functions can still be consistent with government redistribution from the rich to the poor. (Hint: think about the shape of the utility function).

Answer 1

Social Welfare Function:

Social welfare function refers to a task that rates social states according to their desirability or indifference. Any variables that affect society's economic welfare are part of the function. The social welfare function represents potential patterns of mutual choices.

Answer and Explanation:

1. The Rawlsian communal (social) wellbeing function is more dependable with the redeployment from the wealthy to the unfortunate by a government. This is because the social welfare function is reluctant to take risks, making it easy for the government to redistribution.

2. The Utilitarian social welfare is more dependable, with no reallocation from rich to poor by a government. This is because this social welfare function advocates for equal treatment of people regardless of their primary utility level.

3. Redeployment from rich to poor is consistent in the utilitarian social welfare function in that the feature needs taxes that minimize incentives to participate in productive activities. The charges required in the task are regular, which makes redistribution consistent. Rearrangement from the well-off to the less fortunate is constant in the Rawlsian social welfare function in that it focuses more on economic inequalities. Economic patterns are predictable, which enables the consistency in the redistribution.