Convenient Food Markets (CFM) is a chain of more than 100 convenience stores. The company has faced increasing competition over the past several years, mainly because department store chains have been adding grocery departments and gas stations have been adding full-service convenience stores to their locations. As a consequence, the company has lost market share recently to competitors. The company has set a target minimum rate of return for its stores of 22%.

John Nicholson is the district manager of the 17 CFM stores in Bailingham. Nicholson’s district happens to include the original store, the first in the CFM chain, which opened more than 40 years ago. In fact, Nicholson’s first summer job was as a stock boy at the original store in the year that it opened. After university, he returned to CFM as a store manager, has worked his way up to district manager, and plans to retire in about five years.

CFM leases store buildings, investing significantly in the interior design, display, and decoration. The original CFM store remains profitable, in part because the fixtures and fittings are almost fully depreciated. While the company has invested in significant leasehold improvements in other newer stores, little has changed in the original store since opening day. While Nicholson has a sense of nostalgia for the original store, in reality, sales volumes have been falling and foot traffic has declined significantly in recent years. Fewer people are moving to the neighbourhood, as more and more people are moving to the suburbs.

All 17 stores in the district report to Nicholson, who is evaluated on the basis of average ROI for the stores in his district. For this calculation, the net book value of investment in furnishings and fixtures Page 504represents the operating assets of each of the stores. Operating income after depreciation on leasehold improvements represents the numerator for this calculation.

Nicholson is considering a proposal from a developer to open a new store in a newly developed residential neighbourhood. The developer has completed about 60% of the new homes planned for this neighbourhood and will complete the other 40% within the next 18 months. Due to limited capital to invest, Nicholson realizes that opening the new store would mean closing down an old store, and the original store seems to be the best candidate. To aid in his decision, Nicholson has collected the following information:

Required:

1.Calculate the ROI and residual income for both the original store and the new store.

2. Take on the role of an internal auditor at CFM. Assume that your task is to evaluate the effectiveness of the performance evaluation system for CFM district managers. In this capacity, write a short memo to the CFO of CFM to discuss your findings. In the memo, you should indicate whether you believe Nicholson will want to open the new store, whether your analysis indicates that Nicholson should open the new store, and why or why not. You should also include your observations about the effect of the performance evaluation system on the decisions made by CFM district managers and what might be done to improve it.

Identify 10 APA errors in this written document.

Behavior Modification: An Alternative to Drug Therapy in Treating Hyperactive Children ABSTRACT
The purpose of this study is to determine whether application of behavior modification methods can be an effective and safe alternative to amphetamine therapy in the treatment of hyperactive school children. Sixty elementary age school children who were identified as hyperactive were randomly assigned to one of three treatment groups. It was concluded that additional research is needed to determine the generalize ability of the findings to larger groups and to non-special education classes.

In recent years, the use of amphetamines in treating hperactive children, has caused much controversy and concern. According to some researchers, an estimated 400,000 hyperactive school children are presently being treated with these drugs. Much of the public’s concern has to do with the way in which children are diagnosed. Many children, for example, are being treated with amphetamines solely on the recommendations of school authoritys. Despite the fact that many teachers mistake the normal restlessness of childhood for hyperkinesis. Anohter cause for concern stems from a lack of follow-up studies on the long-term affects of amphetamines.

As an alternative to drug therapy, researchers have begun to focus on behavior modification techniques that are believed to be more safer and more effective over time (Strong, 1974). Strong (1974) conducted a two-year study with an autistic boy and found thast positive reinforcement was significantly more effective than drug therapy in reducing facial grimacing. In another study, this same researcher found token reinforcement to be more effective then medication in increasing adaptive behavior in retarded women.

Behavior modification techniques have also been studied in classroom settings. Smith (1969), for example, was able to reduce ina ppropriate classroom behavior of a ten-year old hyperactive girl by using these techniques. In another study, Nixon (1969) tested the effects of behavior modification in increasing the “on-task performance” of 24 boys who had been diagnosed as hyperactive by there teachers. In the Nixon (1969) study, their was four treatment groups which consisted of various reinforcement techniques and control. Results of a one-way analysis of variance indicated no significant differences between the groups. Although it was reported that some
of the children in each gorup made great improvement in staying on task in learning situations. The Nixon study, however, contained possible sources of error: (1) treatment groups only contained 6 subjects each; (2) there were only 8 treatment sessions;
(3) no instruments were used to evaluate children’s performance; and (4) the children knew they were participating in a study.Widespread use of amphetamines in treating hyperactive children may be a dangerous practice. Moreover, behavior modification techniques have shown to be just as effective in reducing hperactive behavior in children in certain settings.
The sample group for this study will be selected from the population of North Side Educational Center for behaviorally disturbed, elementary-age children. Those children who were diagnosed as “hyperactive” or “hyperkinetic” by the school’s psychologist were cosnidered the population. The stratified random sampling method is to be used to insure that children ages 6 through 12 were represented in the study.

Question 1

The American Pet Products Association conducted a survey in 2011 and determined that 60% of dog owners have only one dog, 28% have two dogs, and 12% have three or more. Supposing that you have decided to conduct your own survey and have collected the data below, determine whether your data supports the results of the APPA study. Use a significance level of 0.05.

Data: Out of 119 dog owners, 70 had one dog and 30 had two dogs.

What is the p-value when testing whether your data supports the results of the APPA study? (note: The question asked has been updated)

Question 1 options:

Question 2

A survey of 325 middle school students from a city school district asks, among other things, for students’ gender, whether they prefer cats or dogs, and whether they prefer basketball or football. With these data, we can investigate whether, in this city, girls prefer cats over dogs, whether gender matters in terms of favorite sport, and whether there is a relationship between favorite pet and favorite sport.

Here are part of the data:

Suppose that you plan to use a chi-square test for determining whether there is any gender gap in the preference of certain pets (cats/dogs).

What is the p-value?

Question 2 options:

Question 3

Suppose we have survey data for 1,000 randomly selected local pet owners. We wish to determine if the population proportion of local ferret owners is different from the national average of 6.5%. Out of the 1000 selected pet owners, 85 are ferret owners.

Test whether there is a significant difference between the local ferret rate and the national average.

The p-value is

Question 3 options:

Question 4

Suppose we have survey data for 1,000 randomly selected local pet owners. We wish to determine if the population proportion of local ferret owners is different from the national average of 6.5%. Out of the 1000 selected pet owners, 85 are ferret owners.

Give a 95% confidence interval for the proportion of local ferret owners.

Question 4 options:

Question 5

A high school math teacher believes that male and female students who graduated from the school perform equally well on SAT math test. She randomly chooses 10 male students and 10 female students who graduated from this school. The following are the SAT math scores of the 20 students:

Male: 23, 30, 27, 29, 22, 34, 36, 28, 28, 31
Female: 22, 33, 30, 28, 28, 31, 34, 25, 29, 21

Test the teacher's claim.

What is the p-value?

Question 5 options:

Case Study- Read the case study scenario, answer the questions below, and explain the rationale for your answer.

Glenna, age 38, lost leg function during a motor vehicle accident at age 16. She plays basketball at the community center and teaches aerobic classes for wheelchair-bound people three times a week. She manages a medical equipment rental business since her husband died. Business is not profitable. A physician’s referral was made to the public health department for a developmental assessment.

A nurse heard angry shouting as she stepped toward the porch of the tiny house with peeling paint. The nurse stepped over a broken tread and knocked on the weather-stained door at the end of a ramp. Suddenly a large man burst through the doorway tugging on a T-shirt and muttering. The nurse glanced past the fleeing man. Three children, ages 18 months, 4 years, and 6 years old, knelt on linoleum worn through to the wood. The TV blared a cartoon. No one heard her knock as the children stared at their mother who was crying and holding her cheek. The nurse knocked a second time on the open door and introduced herself. The woman wheeled around to face the other way.

“We are busy. Please come back later,” the woman spoke over her shoulder.

“Pick up the blocks, Chica. Make sure the back door is locked, Stephano and please make a peanut butter and jelly sandwich for your brother and sister.

Not now, Jon. She tells the youngest child, who is banging a block on her wheel.”

The nurse replies, “I can make another appointment, but it will only take a few minutes to assess Jonathan now that I am here. Your physician said you are concerned about his development. If you could answer a few questions I feel sure we can help you. I can help make the sandwiches while we talk.” The nurse’s scan of the living room located a stained spoon and knife near a broken mirror on the coffee table along with a towel, toys, and a magazine. Chica’s hair was uncombed. The boys’ hair hung to his shoulders and looked unwashed.

The mother pulled her robe together over her chest and folded her arms. “You can’t help. Jon is normal but different. You will ask a 100 questions, insult me, and then say there is nothing you can do, just like the doctor did. He made us wait 45 minutes and then says he is going to call someone else. We don’t need that kind of help. Jon is a smart boy with attention problems. I need to clean up. We don’t have time to talk right now.” She raised her voice. “Chica, pass me the cigarettes, will ya? Gracias.”

Jon continued banging his mother’s chair and vocalizing. The children stared at the nurse. Chica looked afraid. Stephano looked hopeful. His dirty pajamas ended well about the ankle.

Create a concept map using case scenarios as a guide. A conceptual map should include pathophysiology, medical diagnosis, signs and symptoms, and risk factors if any. Nursing diagnosis, nursing interventions, medical management (medication and procedures), expected outcomes.

Abe, a 14-year old boy who stoked a fire in a wood-burning stove and was hurt by a subsequent explosion. He was transported to the local burn ICU (BICU). He sustained an 82% total body surface area (TBSA) thermal burn. Abe’s burns included bilateral full-thickness circumferential burns to his legs and feet, arms, and hands, genitalia, and deep partial-thickness burn to his head and anterior trunk.

Before Abe’s arrival to the BICU, the medical team stabilized Abe by initiating cervical spine precautions, endotracheal intubating him, and providing fluid resuscitation and sedation and analgesia with I.V. propofol and morphine via two large-bore peripheral venous catheters.

Once Abe was admitted to the BICU, a right brachial arterial line was placed along with right internal jugular central venous catheter. Initial I.V. fluid resuscitation was calculated based on Abe’s weight of 79 lbs (36 kg), a urinary catheter was placed, and a tetanus injection was administered. The morphine drip was discontinued, an I.V. ketamine drip was started, and wound care began.

Upon reassessment, the nursing staff noted that Abe’s pedal and radial pulses were absent bilaterally, and emergent bilateral upper and lower escharotomies were performed. At this point of care, Abe’s clinical status was critical but stable.

After escharotomies were completed and Abe was stable, and enteral nasogastic tube was placed in the left nares and feedings began. Abe received standard wound dressing with silver sulfadiazine until his burn wounds were grafted (with the exception of his genital burns).

Abe experienced a slow recovery. Within 72 hours of his admission to the BICU, the first surgical excision and grafting onAbe’s hands, feet, head, and neck were completed. His anterior trunk also required surgical excision and grafting at this time. Nurses explained to Abe’s parents that further excisions and grafting procedures would be performed until all of Abe’s burn wounds were closed. The excisions and grafting on Abe’s arms and legs were completed over the next month. A conservative approach was employed to treat Abe’s genital burn. Initially, all obvious retained material (loose debridement) and contaminated remnants of Abe’s clothing were removed.

Next, the BICU nurses completed a prolonged cooling down procedure with water. During the duration of Abe’s admission, topical antibiotic ointments such as Mupirocin were impregnated into gauze and applied over the perineal area and changed every bowel movement. Scheduled as P.R.N. cleansing as accomplished using 4% chlorhexidine skin wash.

This approach led to the successful healing of Abe’s genital burns. Abe was weaned from the ventilator on the third attempt during his second week in the BICU, and solid foods were introduced gradually.

(1) You wish to retire in 10 years, at which time you want to have accumulated enough money to receive an annual annuity of $13,000 for 15 years after retirement. During the period before retirement you can earn 9 percent annually, while after retirement you can earn 11 percent on your money.
What annual contributions to the retirement fund will allow you to receive the $13,000 annuity? Use Appendix C and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
  

Annual contribution=

(2) Mr. Dow bought 100 shares of stock at $17 per share. Three years later, he sold the stock for $23 per share. What is his annual rate of return? Use Appendix B for an approximate answer, but calculate your final answer using the financial calculator method. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
  

Annual rate of return % =

(3) Franklin Templeton has just invested $9,760 for his son (age one). This money will be used for his son’s education 19 years from now. He calculates that he will need $35,235 by the time the boy goes to school.
What rate of return will Mr. Templeton need in order to achieve this goal? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Rate of Return% =

(4) Juan Garza invested $103,000 5 years ago at 8 percent, compounded quarterly. How much has he accumulated? Use Appendix A for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Future Value =

(5) Jack Hammer invests in a stock that will pay dividends of $3.15 at the end of the first year; $3.60 at the end of the second year; and $4.05 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $65.What is the present value of all future benefits if a discount rate of 8 percent is applied? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

Dividend Present Value

$3.15

3.60

4.05

65.00

Total

(6) Rita Gonzales won the $44 million lottery. She is to receive $2 million a year for the next 17 years plus an additional lump sum payment of $10 million after 17 years. The discount rate is 9 percent.
What is the current value of her winnings? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.(Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Present Value =  

Suppose that you are part of the Management team at Porsche. Suppose that it is the end of December 2019 and a novel coronavirus that causes a respiratory illness was identified in wuhan city, China.

You (as part of the management team) are reviewing Porsche’s hedging strategy for the cash flows it expects to obtain from vehicle sales in North America during the calendar year 2020. Assume that Porsche’s management entertains three scenarios:

Scenario 1 (Expected): The expected volume of North American sales in 2020 is 35,000 vehicles. Scenario 2 (Pandemic): The low-sales scenario is 50% lower than the expected sales volume. Scenario 3 (High Growth): The high-sales scenario is 20% higher than the expected sales volume.

Assume, in each scenario, that the average sales price per vehicle is $85,000 and that all sales are realised at the end of December 2020. All variable costs incurred by producing an additional vehicle to be sold in North America in 2020 are billed in euros (€) and amount to €55,000 per vehicle. Shipping an additional vehicle to be sold in North America in 2020 are billed in € and amount to €3,000 per vehicle.

The current spot exchange rate is (bid-ask) $1.11/€ - $1.12/€ and forward bid-ask is $1.18/€ - $1.185/€. The option premium is 2.5% of US$ strike price, and option strike price is $1.085/€. Your finance team made the following forecasts about the exchange rates at the end of December 2020:

• bid-ask will be $1.45/€ - $1.465/€ if the investors (and speculators) consider the euro (€) a safe haven currency during the pandemic.

• bid-ask will be $0.88/€-$0.90/€ if the investors (and speculators) consider the U.S. dollar ($) a safe haven currency during the pandemic

1. You decided not to hedge Porsche’s currency exposure. Assuming that the expected final sales volume is 35,000, what are your total costs
   a) if the exchange rate (bid-ask) remains at $1.11/€ - $1.12/€? Let’s call this the baseline scenario.

   b) if the investors consider the euro a safe haven currency during the pandemic? How does this compare to the baseline case?
   c) if the investors consider the U.S. dollar a safe haven currency during the pandemic? How does this compare to the baseline case?

2. Assume that you and the Porsche’s management team decided to hedge using forward contracts. Assume that the expected final sales volume is 35,000. What are your total benefit/cost and the percentage benefit/cost from hedging (compared to no hedging)
   a) if the exchange rate (bid-ask) remains at $1.11/€ - $1.12/€?

   b) if the investors consider the U.S. dollar a safe haven currency during the pandemic?

3. As the CFO, you decided to hedge using option contracts. Assuming expected final sales volume is 35,000, what are your total benefit/cost and the percentage benefit/cost from hedging (compared to no hedging)
   a) if the exchange rate (bid-ask) remains at $1.11/€ - $1.12/€?

   b) if the investors consider the U.S. dollar a safe haven currency during the pandemic?

4. Assume that the Scenario 2 (Pandemic) took place in 2020 and the euro became a safe haven currency during the pandemic. What are your euro cash flows if you did not hedge, hedged using forward contracts, and hedged using option contracts?

5. Assume that the Scenario 2 (Pandemic) took place in 2020 and the U.S. dollar became a safe haven currency during the pandemic. What are your euro cash flows if you did not hedge, hedged using forward contracts, and hedged using option contracts?

6. Based on the calculations in Part B, do you believe that it is a good policy to hedge Porsche’s currency exposure? Why?

QUESTION 1

1. A multilingual individual with extensive atrophy is still able to perform within normal limits on most measures of cognitive ability. This is an example of

   		Brain reserve
   		Cognitive reserve
   		Inhibition Deficit
   		Transmission Deficit

2 points   

QUESTION 2

1. 80-year-old female presents with a brain 19% smaller than when she was 40 and a reduction in dendritic/synaptic spines. Is this an example of Healthy Aging?  

   Yes

   No

2 points   

QUESTION 3

1. Many of the linguistic changes associated with healthy aging can be attributed to a reduction in:

   		Episodic memory
   		Semantic memory
   		Working memory
   		Procedural Memory

2 points   

QUESTION 4

1. 120-year-old female presents with declining scores on sustained attention and recalling new information. Yet she walks 10 miles a day and is a lifelong vegetarian. Is this an example of healthy aging?

   Yes

   No

2 points   

QUESTION 5

1. 65-year-old female presents with a decline in coherence scores, as well as a reduction in syntactic complexity. Semantic memory did not demonstrate any decline. fMRI demonstrated a shift from utilizing episodic memory to using more semantic memory. On measures of working memory with distractors, the individual was able to remember 3 items. Is this an example of healthy aging?

   Yes

   No

2 points   

QUESTION 6

1. 90-year-old man presents with attention, memory, working memory, and executive function scores within normal limits. He also scores within normal limits on measures of receptive and expressive language. However, his discourse samples do show a small reduction in the number of vocabulary items produced. Is this an example of healthy aging?

   Yes

   No

2 points   

QUESTION 7

1. A 40-year-old man presents with a decline in divided/alternating attention and executive function. An MRI reveals his brain as shrunk by 5% within the last decade. Is this an example of healthy aging?

   Yes

   No

2 points   

QUESTION 8

1. A theory of aging where the main physiological mechanism focuses on the deterioration of the myelin sheath that covers neuronal axons?

   		Slowed Processing
   		Transmission Deficit
   		Inhibition Deficit
   		Region-Specific Hypothesis

2 points   

QUESTION 9

1. Chronological age is tied to biological age?

   True

   False

1 points   

QUESTION 10

1. A 60-year-old female presents with a decline in divided/alternating attention and executive function, especially inhibition. The individual also presents with no decline in language production, but there is a moderate decline in comprehension. Is this an example of healthy aging?

   Yes

   No

2 points   

QUESTION 11

1. A 65-year-old female presents with cognitive scores within normal limits for attention, memory, working memory, and executive function. She hasn't noticed a change in her language production or comprehension. She claims to read everyday. An MRI revealed several tiny infarcts across the cortex. Is this an example of healthy aging?

   Yes

   No

2 points   

QUESTION 12

1. 75-year-old female presents with declining scores in the recall of novel word lists but scores within normal limits on measures of semantic memory. Measures of attention and executive function show no decline. However, her working memory capacity is reduced to 1 item with distractors and 4 items without distractors. She is able to perform her activities of daily living independently.  

   Yes

   No

2 points   

QUESTION 13

1. Theory of aging that focuses on the atrophy of brain regions, especially the frontal cortex.

   		Slowed Processing
   		Transmission Deficit
   		Inhibition Deficit
   		Region-Specific Hypothesis

WRITE AN APPROPRIATE CONCLUSION TO COMPLETE THE ESSAY BELOW.

The world is currently faced with a global pandemic of the novel Coronavirus disease 2019 (Covid-19) which quickly spread to many countries of the world. Measures were enforced in each country to stop the spread of the virus. One of the measures taken was the abrupt closure of all schools which led schools to explore online teaching methods to continue learning among its students. Several categories of online teaching methods were used, chosen based on the topic, the target students, the requirements of the Ministry of Education and the demands of the users. Online learning methods can mimic actual classrooms, with required attendance at specific times, can be self-paced, or blended, and use a variety of tools to engage students and support learning. Asynchronous, Synchronous and Hybrid online learning are three categories of online teaching methods.

Asynchronous online learning is one category of an online teaching method. It is used to describe types of learning and education that do not happen in the same place or time. This is important because digital and online teaching platforms allow students to access learning materials prepared by teachers at a time convenient to them. Students and teachers can interact continuously through online forums. Examples of asynchronous learning are emails, blogs, online discussion board and game-based activities. According to Keith Bachman, “in times where small instructor-led classrooms tend to be the exception, electronic learning solutions can offer more collaboration and interaction with experts and peers, as well as a higher success rather than the live alternative”.

Synchronous learning is another type of online teaching method. This is live online learning from various places with many learners. Here an instructor teaches virtually not physically. One of the most important advantages of synchronous learning is that it would provide a better classroom environment because of the variety of media used for the personal contact. Since students of this age are very tech savvy it becomes very easy for them to adopt to the classes using their own devices. Secondly, it helps the students learn at their own pace, time and distance is also not an issue. This would mean that time and space are overcome with the help of technology. Thirdly, they also have a variety of materials which would suit the learning style and speed of the learners. However, the disadvantage is that there is a rigid schedule which one cannot break or miss. This would make people more stressed if it is accompanied by technical difficulties. Nevertheless, synchronous learning has changed the face of learning amidst the pandemic.

Finally, another class of the online teaching method involves hybrid online learning. Hybrid online course includes a combination of the asynchronous and synchronous learning systems. The goal of the hybrid teaching method is to combine the best elements of online teaching and teaching traditionally to give the best experience of learning. Students would be required to meet face to face and have classes online, due to the CoronaVirus disease persons will be assigned by the Lecturer to meet in small groups and a face to face class will be given on a specific day. According to PennState, research and effective practice has shown that this teaching method gives students the opportunity to learn class work before and after it was taught, leaving powerpoint presentations and providing readings online can ensure this.(PennState University, n.d)Students who don't understand what was taught in class can go back and look at previous which is a major help. This method is flexible and allows both students and teachers to balance their work, social life and other activities a lot better.

The Limits of Redistribution and the Impossibility of Egalitarian Ends

By JEREMY JACKSON AND JEFFREY PALM

ABSTRACT

One of the many dangers of the modern egalitarian philosophy is that it hides its true
objectives behind the guise of social justice. Adherents would insist that they reject the
materialistic values of their free-market foes. However, not far below the surface
commitment to relational equality and disruption of social hierarchy lies their true motive:
material equality. The modern egalitarian is shifting from a focus on equality of relationships
to a focus on equality in quality of life and more comprehensive measures of well-being
(Arneson 2000). Whether the egalitarian desires to create policies that lead to equality in
distribution of wealth or to equality in well-being, it does not matter. Both are impossible
ends. Inequalities in wealth and well-being are due in part to inequalities in the distribution of
social capital, which can be neither removed nor transferred from one individual to another.
Thus, inequalities in wealth and well-being are the inevitable result of a system reliant on
humans autonomously making decisions.
Page 9 of 21

The Origins of Egalitarianism

1. Egalitarianism as an academic school of thought did not actually begin to concretize
until the post–World War II era, although certain basic ideas go back as far as biblical
times (equality of souls but not “earthly” equality) (Anderson 2014). Many of
egalitarianism’s roots are traceable to a particular understanding of the philosophy of
altruism: the idea that a person has but two options in life—to sacrifice one’s self in the
service of others or to sacrifice others in the service of one’s self (Kelley 1991, 2009).
From this understanding of altruism, egalitarians derive a fundamental
misunderstanding of “the zero-sum game.” Because they mistakenly think of all goods
and services as slices of a (finite) pie, they deduce that for one person to gain, another
must lose. From this either–or conception of altruism, egalitarianism concludes that the
only moral thing to do is to sacrifice one’s self in the service of others (Kelley 1991).

2. Karl Marx himself was no egalitarian, yet many of his ideas have helped to shape
modern egalitarianism. His focus on conflict and the exploitation of the subjugated
worker, derived from his misconceptions of the labour market and the means of
production, contributed to the mid- to late-nineteenth-century push for a shorter
workday and higher wages (Anderson 2014). This push then fed into Otto von
Bismarck’s creation of the first modern welfare state in Germany in an effort to combat
Marx’s more revolutionary socialism. Anthony P. Mueller states that “social policy was
foremost national policy and the social security system was primarily an instrument to
lure the workers away from private and communitarian systems into the arms of the
State” (2003).

3. By the early 1940s, which saw the publication of the Beveridge Report in the United
Kingdom in 1942 and Franklin Roosevelt’s suggestion of the “Second Bill of Rights” in
1944, contemporary crystallization and acceptance of the principles of “distributive
justice” had taken place (Roosevelt 1944; Anderson 2014; “The Welfare State” 2016).

4. Philosopher John Rawls, another one of egalitarianism’s most prominent historical
standard bearers, was himself not strictly an egalitarian. However, his seminal work, A
Theory of Justice (1971), is counted among the most foundational of contributions. In
this volume, Rawls explains his most influential concept, the “difference principle,”
which “gives expression to the idea that natural endowments are undeserved” (Wenar
2012). Rawls felt (as do the so-called luck egalitarians) that just because a person is
more intelligent or a naturally gifted musician or better looking or raised with better
values, or something else, it does not entitle him or her to be better off than others. To
Rawls, being more successful than others by using one’s natural endowments (or by
any other means) can be justified only if people who are worse off are made better off
because of that success.

5. On the face of it and according to their own descriptions, egalitarians have differing
ideas with respect to defining the concepts “justice” and “equality.” However, all
schools of egalitarian thought lead to the same ultimate goal: distribution. Most
egalitarians do not actually advocate equality of outcomes because most realize that a
rigid insistence on the tall being made short or the intelligent being made less so would
lead to disastrous consequences. What they want is what they consider to be “fair”
distribution (Kelley 1991). So their basic notions of equality hinge on whether
distribution is just or in the case of relational egalitarianism that societal relationships
are just. However, before discussing the two broad categories of luck egalitarianism
Page 10 of 21
and relational egalitarianism, we must say a few more words regarding the concept of
justice.

6. To many libertarians and classical liberals, the claim that a free market, an impersonal
mechanism governed by the laws of nature, is either just or unjust is absurd. This
claim is evidence of a complete misunderstanding of how the market functions. As
Hayek aptly points out, such claims amount to nothing other than anthropomorphism
(1998, 62, 75).

7. However, those who advocate free markets certainly cannot claim to have ever
actually seen them. Much of the egalitarians’ perceptions of injustice are the symptoms
of the very root causes that such advocates devote the bulk of their work to exposing,
refuting, and denouncing. This feature of the justice problem is twofold: on the one
hand, egalitarianism incorrectly concludes that the corruption observed is simply the
way free market capitalism works; on the other hand, some market advocates
inadvertently defend the corruption as though it were free-market capitalism. It is
imperative to acknowledge that which is correctly perceived as unjust as such and
simultaneously to point to its being but a symptom of corruption that is rooted in
government intervention in the market. It must always be stressed that this corruption
is not a product of free-market capitalism because it then becomes possible to
illustrate the clear distinction between calls for justice that are grounded in reality and
those that are founded on anthropomorphism.

8. Unfortunately, this distinction does not usually carry much weight in the view of the
egalitarian, who frequently finds it completely irrelevant. As David Kelley (1991) points
out, every form of “social justice” rests on the belief that individual ability is a social
asset, a collective good. John Rawls wrote, “Injustice, then, is simply inequalities that
are not to the benefit of all” (1972, 62). On this point, Rawls and Hayek tend to agree.
“The most common attempts to give meaning to the concept of ‘social justice,’” states
Hayek, “resort to egalitarian considerations and argue that every departure from
equality of material benefits enjoyed has to be justified by some recognizable common
interest which these differences serve” (1998, 80).

9. Luck egalitarianism—what Murray Rothbard (1995) refers to as “old” or “classical”
egalitarianism—is more overtly concerned with distribution of income and wealth. It
holds that no one should have to be worse off just because they were born into
unfortunate circumstance or were the victim of a natural disaster or made a mistake in
business or are unintelligent or something else. Rothbard terms this egalitarianism
“old” because modern-day egalitarians have realized the limitations of using the mere
poverty of individuals as moral leverage for their demands for justice.

10. Relational egalitarianism (sometimes referred to as “democratic egalitarianism”) has
been discovered to be a much more effective means of moral intimidation when it
comes to insisting that justice be done. Rothbard (1995) terms this viewpoint “new
group egalitarianism.” The significance of the “group” distinction will become clear as
we delve a bit deeper into its meanings.

11. The new-group egalitarians are concerned primarily with social hierarchies—
specifically, domination and subjection, honour and stigmatization, and high and low
standing in the eyes and calculations of others (calculations as in government policy,
for example) (Anderson 2014). However, one must always remember that these
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egalitarians employ this technique to rationalize, justify, and affect their ultimate goal of
distribution. Sometimes they assert that just distribution is what is necessary in order
to bring about just social relationships. At other times, they assert that policies to affect
just social relationships are necessary to bring about just distribution. Whether the cart
comes before or behind the horse makes little difference; the end result is always
governmental use of violence, coercion, and central planning to affect distribution (of
other people’s money) (Rothbard 1995).

12. Groups such as ethnic minorities, genders, laborers, elders, the young, and virtually
any other group conceivable conveniently fit into one or more of the social hierarchies
listed earlier (Rothbard 1995). New groups are readily added to the seemingly endless
list whenever anybody says the magic word injustice, and anyone who would oppose
(re)distribution to one of these groups must be considered an oppressor. Rothbard
sums it up nicely by paraphrasing Joseph Sobran: “[I]n the current lexicon, ‘need’ is
the desire of people to loot the wealth of others; ‘greed’ is the desire of those others to
keep the money they have earned; and ‘compassion’ is the function of those who
negotiate the transfer” (1995, 53). The insidiousness of relational egalitarianism lies in
its approach to distribution. Egalitarians have erroneously concluded that the cause of
economic difficulties is rooted in the unjust social hierarchies. Therefore, it follows
(they conclude) that in order to affect just distribution, they must design a system that
eliminates the unjust social hierarchies (Sowell 2005, 249–66).

13. Although unjust social relationships certainly cause an incalculable amount of (often
catastrophic) damage, the currently fashionable notion that these relationships are the
root causes of economic difficulties rather than the other way around is incorrect
(Sowell 2005; Williams 2011). Economic difficulties can always be shown to be the
ultimate root causes of the unjust social hierarchies or relationships. They arise as
resentment for being treated unjustly, as rationalization or justification for treating (or
having treated) others unjustly, as a means of securing the ability to treat others
unjustly in the future, and so on. Upon observing social injustices, we should ask
ourselves what motives the perpetrators might have for their unjust conduct. The
origins of the injustice are never arbitrary. They are economic. They may be
completely immoral and thoroughly unjust, but the fact remains that they exist because
the perpetrators hope to derive some benefit from them (Williams 2011).
Sources of Inequality

14. Regardless of its rhetoric, at its core egalitarianism has as its main goal the elimination
of wealth inequality. It has been argued (Piketty 2014) that wealth inequality itself
comes from one primary source: capital. Yet capital itself can be placed into many
categories. Physical capital includes the factories, buildings, computers, land, and
infrastructure that are ultimately used as the inputs to production. Human capital
comes from the knowledge and creativity possessed by human beings that gives them
the capability to contribute to production. Commonly overlooked but increasingly
recognized as important is the concept of social capital, which refers to the “trust and
norms of civic cooperation . . . essential to well-functioning societies” (Knack and
Keefer 1997, 1283). To the extent that wealth can be taxed and redistributed, the
egalitarian would argue that the desired end of equality of distribution is achievable.

15. Physical capital and the income stream it produces can be taxed from one individual
and transferred to another. Thus, egalitarians conclude that any wealth inequalities
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perpetrated by differences in the distribution of physical capital ownership can be
remedied by the well-intentioned taxing powers. To this end, proposals have
advocated a sweeping global tax on wealth (Piketty 2014) and expansion of the estate
tax (Caron and Repetti 2013). However, taxation and redistribution of wealth will be
able to produce sustained equality in wealth only under a limited set of circumstances.
A wealth tax can be effective if the only sources of wealth inequality are inequalities in
the distribution of physical capital. If there are other sources of wealth inequality, such
redistribution will not be possible with a simple tax system and will be effective only
under continuous management by a totalitarian regime. “So long as the belief in ‘social
justice’ governs political action, this process must progressively approach nearer and
nearer to a totalitarian system” (Hayek 1998, 68).

16. Wealth inequalities caused by differences in the distribution of human capital are more
difficult yet not impossible for the state to overcome. Although it isn’t possible to
directly take one person’s human-capital stock and give it to another, it is possible to
tax the wage income derived from some persons’ human capital in order to provide
educational opportunities for others (Guvenen, Kuruscu, and Ozkan 2013). However,
an increasing amount of evidence has shown that the labor market rewards and
punishes certain noncognitive traits, including personality, with wage differentials
(Heckman 2000; Borghans et al. 2008). An individual’s psychological traits and
characteristics cannot be instilled in others through mere education. The family also
plays a significant role in the development of human capital (Becker and Tomes 1994),
which makes it even more difficult for redistribution to be effective. Rawls himself
states that the family, with its effects on the development of the natural capacities, will
ultimately always stand in the way of “equal chances of achievement,” unless a
solution is found that will “mitigate this fact” (1972, 74; see also Rockwell 2015).

17. Perhaps most problematic for the egalitarian goal of equality of distribution are the
differences in wealth and income that are perpetrated by social capital and networks.
Wage earnings aren’t derived solely from an individual’s human capital. Douglas North
(1990) argues that informal social norms and culture are critical to an understanding of
the sources of prosperity. One way that this idea has been evidenced and measured in
the literature is through the concept of social capital popularized by the works of
Robert D. Putnam (1995, 2001).

18. Social capital itself has proven difficult to define, with no one definition being agreed
upon in the literature. Emily Chamlee-Wright defines it as “a complex structure made
up of community norms, social networks, favours given and received, potluck suppers,
book groups, church bazaars, and neighbourhood play groups” (2008, 45).

19. Even with the complexities and difficulties in measurement associated with social
capital, a large empirical literature has shown that social capital and networks add
significantly to an individual’s labour earnings (Knack and Keefer 1997; Narayan and
Pritchett 1999). Human capital and social capital often function as substitutes
(Boxman, De Graaf, and Flap 1991). Yet not much is known about the production of
social capital, unlike physical capital, with its capacity for direct redistribution, and
human capital, with its capacity for indirect redistribution. We may in a limited sense be
able to tax some of the labour returns to social capital, but it is yet unclear how that tax
income can be used for the creation of social capital. Although we know that there are
great benefits to both the individual and society at large from social capital and that
societies don’t flourish in its absence, we don’t have a well-developed theory or policy
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on how to create social trust and cohesion. Perhaps the most obvious policy
recommendations (as evidenced by the empirical relationships) are among the most
illiberal because social capital is known to be highly related to racial, ethnic, and
religious homogeneity (Alesina and La Ferrara 2000; Portes 2014). As it turns out,
people trust those who are most like them.

20. There is also an empirical literature that links free-market institutions to measures of
social capital and trust. Although some of the results in this literature are mixed,
several papers suggest a positive and causal relationship between economic freedom
and social capital (see, e.g., Berggren and Jordahl 2006; Jackson, Compton, and Min
Maw 2016). In this light, it is possible that inequalities caused by gains from returns on
social capital may to some degree be the kind that Rawls deems acceptable. Social
capital brings about benefits to society as a whole. Yet those benefits are not spread
equally among all of society’s members but accrue in increased quantities to those
with the more favoured social network. The inequality of incomes and wealth could be
taxed away, but this increase in taxation and redistribution decreases economic
freedom, with a resultant deleterious effect on social capital. These inequalities serve
the “social good.” Attempting to redistribute them away may cause the benefits that all
receive to disappear.

21. Given the impossibility of equality of distribution, the only option available to meet the
egalitarian end of equality of distribution is complete totalitarianism. Only when every
facet of each individual’s life is completely controlled by the state in a continuous
manner can equality be achieved. If the system is ever left to operate on its own,
inequality in distribution will be the result.
New Directions for Egalitarianism

22. As discussed in a previous section, relational egalitarians may not see equality of
wealth as their most desired outcome. They instead desire equality of social
relationships. To them, equality of wealth has been the most direct path to achieve this
desired end. However, new trends are developing.

23. There has been increased attention in the economics literature on the failings of
policies that target economic growth and income in an effort to make lives better off.
This argument has been the apex of the emerging literature on the economics of
happiness. Ever since the publication of Richard Easterlin’s (1974) work, which
popularized the Easterlin Paradox, some of the literature has set out to explain why
increases in a country’s income do not correlate with higher levels of self-reported
happiness among its citizens. Indeed, now even former Federal Reserve chairman
Ben Bernanke argues that “GDP is not itself the final objective of policy” (2010). The
better objective is well-being (happiness), and the egalitarian now has a new direction
for policy in promoting equality of well-being. Many advocate augmenting the national
measurement of gross domestic product with a national happiness accounting (Diener
2000).

24. In shifting the policy focus away from wealth inequality and toward inequality of wellbeing
(Goff, Helliwell, and Mayraz 2016), a host of interventionist policies are opened
up to the egalitarians’ disposal. Subjective well-being measures are regarded as
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comprehensive measures of quality of life, and they have many correlates. A
nonexhaustive list of correlates (Dolan, Peasgood, and White 2008) includes variables
such as income (Diener and Oishi 2000), education (Blanchflower and Oswald 2004),
environment (Welsch 2006), materialism (Kasser 2003), mortality (Kawachi et al.
1997), employment (Stutzer 2004), personality (DeNeve and Cooper 1999), and even
social capital and trust (Helliwell and Putnam 2004). The shift in focus away from
income and toward a more broadly defined well-being measure can open up a
Pandora’s box of progressive policy proposals.

25. However, the egalitarians’ search for policies to attain equality of well-being may in fact
lead to the unraveling of well-being itself. A large literature demonstrates that
autonomy of individual choice leads to greater subjective well-being (Ryan and Deci
2000; Verme 2009), and an ever-expanding literature links high economic freedom to
greater subjective well-being (Veenhoven 2000; Gropper, Lawson, and Thorne 2011;
Nikolaev 2014; Jackson 2016). The problems this literature presents for the goals of
redistribution are in addition to the inherent difficulties in distributing such fundamental
determinates of well-being as personality traits and psychological characteristics.
Perhaps a more pervasive problem for proponents of policies for happiness is that of
adaptation.

26. Adaptation in the happiness literature refers to humans’ innate ability to adapt to new
circumstances. In fact, one explanation of the Easterlin Paradox is that increases in
income can fail to create increases in happiness because people rapidly adjust to their
higher incomes. Although there may be an initial temporal boost in happiness from
increased income, the effects do not persist in the long run. Adaptation also explains
why poor and impoverished countries sometimes report much higher levels of
happiness than might seem reasonable (Graham 2010). People have a baseline
equilibrium level of happiness, and any deviations from that baseline are short-lived. If
well-being inequalities are taken to be meaningful, then any policies implemented with
the intention of combating them must target an element of well-being that isn’t subject
to adaptation. Among the correlates of subjective well-being, social capital is often
referred to as a prominent candidate policy target that is immune to the problems of
adaptation (Bartolini, Bilancini, and Sarracino 2016). Thus, if egalitarianism pursues
equality in the domain of well-being, it will still find itself trying to accomplish an
impossible task in determining the distribution of social capital.
Conclusion

27. Although egalitarians may be reluctant to admit their focus on equality of distribution in
philosophical debate, this singular policy focus has emerged even among the so-called
new-group egalitarians with their emphasis on social hierarchy. Equality of social
relations, they assert, must begin from the establishment of economic equality of
wealth. Unfortunately for these egalitarians, wealth and well-being are partly
determined by the distribution of social capital. Social capital is distinct from physical
capital and human capital in that it can neither be removed from an individual nor
imputed to another. A sovereign’s inability to distribute social capital results in an
impossible equality of distribution in wealth or well-being short of totalitarian control of
the entire system.

SECTION A

QUESTION 1

1.1 Why is it impossible for equality in distribution of wealth? (2)
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1.2 What is the moral standpoint of egalitarianism? (2)
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1.3 Why did Otto von Bismarck create a welfare state in Germany? (2)
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1.4 According to egalitarianism, what do their basic notions of equality hinge on? (2)
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1.5 What did Hayek accuse the libertarians and classical liberals of when they classified
free markets as just or unjust? (2)
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1.6 On what point does modern day egalitarianism disagree with classical egalitarianism?
(2)
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1.7 What does relational egalitarianism advocate should be removed any unjust system?
(2)
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1.8 On what grounds do egalitarians agree that equality of distribution is achievable? (2)
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1.9 Why is social capital regarded as the most illiberal? (2)
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1.10 According to the text, what is the only way we can achieve equality of distribution? (2)
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1.11 What is meant by the Easterlin Paradox? (2)
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1.12 If egalitarianism pursues equality in well-being, what obstacle will they face? (2)
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TOTAL: 24 marks