Premium Essay

Defending the One Percent

In:

Submitted By Alejavida
Words 1161
Pages 5
The article “Defending the one percent” by N. Gregory Mankiw (Journal of Economics Perspective-volume 3, number 27-Summer 2013-Pages 21-34) is an attempt to analyze some reasons for not having an equal distribution of income, regarding special attention to the one percent of the people with the highest income. This issue has been debated for decades and has kept the attention of many economists. Since this disparity leads to inequality, the role the Government has been subject of analysis in order to stablish the level of involvement and the mechanism to solve the problem via taxation.
The paper starts pointing out an example of disruption of a utopic economy where a new entrepreneurial idea has come up. In this case, everyone wants the new product, but there is only one provider; therefore, the demand exceeds the supply and the entrepreneur ended up being richer that the others. This unequal redistribution of well-being started as a voluntary exchange, so there are two questions the author brings up, related to contribution of the entrepreneurial to the alteration of the public policy and whether or not this policy should remain unchanged. This is a reflection of what has been happening in the United States where the income has grown, but not in a uniform way across the income distribution, which leads to the question for policymakers to make taxation more progressive.
The second issue in the paper is related to inefficiency as a result of inequality. Taking as example the Pareto criterion, no-one could possibly object, since there is a way of make people better off without making others worse off. However, the author also refers to Kaldor - Hicks criterion which states that inequality is inefficient in the sense of shrinking the size of the economic pie this is assuming that if the top 1 percent earns an extra $1, in some way, that reduces the income of the

Similar Documents

Premium Essay

Defending the Use of Tax Credits for Historical Preservation

...Defending the Use of Tax Credits for Historical Preservation Historical establishments serve as reminders of the past to help people understand where they came from and to understand where they are headed. People feel more connected to a community when they can see visual reminders of a community’s evolution. One way in which to promote the maintenance and improvement of historical establishments is to offer benefits, such as Tax Credits, to property stakeholders. Keeping and renewing these Tax credits is vital to the future of historical preservation in our cities, states and country. Tax credits for historical preservation help create jobs, improve local economies through higher household income, are good for local communities, and are good for the environment. Some people would argue against Tax credits because they believe they hurt industries not related to historical preservation and is too much of a burden on tax payers. The biggest benefit to supporting historical preservation tax credits is in the number of jobs it creates. Historic preservation is more labor intensive than new construction, and is proven to create more and better-paying jobs. Since 1978 the investment in federally supported tax credits has created approximately 2.35 Million jobs which include 121.25 billion in Gross Domestic Products. These jobs were mostly created in the construction sector but also created jobs that impacted the service, manufacturing and retail trade sectors. Indirectly...

Words: 1165 - Pages: 5

Premium Essay

Cone And Offenhetorical Analysis

...For instance, an example of facts the authors use is when they tell the reader that EpiPen raised their price on treatment by 500 percent and that pharmaceutical companies do not produce lifesaving medicine’s that are non-profitable (Crone, Offenheiser, 2016). Logic is used when saying that for change to occur in the United States the “president must stop defending industry profits and work to reform how we pay for medical research to ensure that all patients’ needs are addressed” (Crone, Offenheiser, 2016). Expert opinion was used when the author’s informed the reader that Ban Ki-moon, the secretary-general of the United Nations, industry, government, academic and civil society experts, including Oxfam International’s executive director, recommended ways to reduce drug prices and develop new drugs and research (Crone, Offenheiser, 2016). The authors then showed how the Obama administration (U.S.) tried to devalue the panels recommendation’s by calling their work “deeply flawed” (Crone...

Words: 561 - Pages: 3

Premium Essay

Hbs Case

...The HBS Case Method Pioneered by HBS faculty and one of the highlights of the HBS experience, the case method is a profound educational innovation that presents the greatest challenges confronting leading companies, nonprofits, and government organizations—complete with the constraints and incomplete information found in real business issues—and places the student in the role of the decision maker. There are no simple solutions; yet through the dynamic process of exchanging perspectives, countering and defending points, and building on each other's ideas, students become adept at analyzing issues, exercising judgment, and making difficult decisions—the hallmarks of skillful leadership. Page Content Over 80 percent of cases sold throughout the world are written by HBS faculty, who produce approximately 350 new cases per year. Simply put, we believe the case method is the best way to prepare students for the challenges of leadership. How the HBS Case Method Works When students are presented with a case, they place themselves in the role of the decision maker as they read through the situation and identify the problem they are faced with. The next step is to perform the necessary analysis—examining the causes and considering alternative courses of actions to come to a set of recommendations. To get the most out of cases, students read and reflect on the case, and then meet in learning teams before class to "warm up" and discuss their findings with other classmates. In class—under...

Words: 389 - Pages: 2

Premium Essay

Argumentative Speech Trump

...Argumentative Essay Peter Baker is not only an author of many books but he also is a columnist for the new york times. Mr. Baker tends to focus on one thing when he is writing, and that is politics and with that is Donald Trump. Baker has written many articles on this president but i am only going to give my point of view on three of them, “Trump Says His ‘Nuclear Button’ Is ‘Much Bigger’ Than North Korea’s”, “Trump, Defending His Mental Fitness, Says He’s a ‘Very Stable Genius’”, and “Souring World Views of Trump Open Doors for China and Russia”. Throughout all three of these articles there is but one thing in common, the bashing of trump. All these articles just point out all the bad things that trump has done during his term as president so far. Don't get me wrong there is a lot of things that trump has done that i don't exactly agree with but there is some things that he has done that we as a country benefited from, but that is just...

Words: 949 - Pages: 4

Premium Essay

No Tolerance and No Bulling Policies

...No Tolerance and No Bulling Policies: Why They Do Not Work "Zero Tolerance Policies" were first instated into schools, to enforce suspension and expulsion, in response to students; violating; weapons, drugs and violent act policies that were already in place. Shortly after, schools began to instate “No Bulling Policies” partly to a high suicide rate among teenagers due to bulling. The consequences for violating these policies can now go beyond expulsion, and have legal implications. In theory these policies are a great idea. Unfortunately, these policies are rarely implemented and carried out correctly, causing them to not just be ineffective; but causing them to have adverse effects. We have tried these policies in our schools , it has been proven that they have done more harm than good; it is now time to remove these policies from our schools. The “school to prison pipeline," is a recent national trend where children are pushed out of public schools, and into the juvenile and criminal justice systems. Many of these children have learning disabilities, histories of poverty, and histories of abuse and neglect. There students would benefit from additional educational and counseling services. Instead, they are isolated, punished and pushed out. Many "Zero-tolerance" policies criminalize minor infractions of school rules. Cops in schools are criminalizing behavior that should be handled inside the school. Students of color are especially vulnerable to push-out trends and the...

Words: 1610 - Pages: 7

Premium Essay

Public Administration Career Cluster

...As you know, the government can modify the lives of Americans daily. The government and public administration career cluster propose many different jobs in every career area. There are also many different forms of government. A democratic government means the expression of universal will. If you decide to work in the federal government, you will aid in defending our nation from foreign threats, and deliberate, pass, and compel laws. Finally, the state and local governments approve laws or ordinances and administer key duties to constituents. As I have previously stated, these occupations are all related in that they affect the lives of Americans, and that this specific cluster aims at careers that are exclusive to government and cannot be obtained...

Words: 380 - Pages: 2

Free Essay

Google: Dont Be Evil Unless....Article Review

...garage in Silicon Valley in 1998 to become one of the most powerful technology-driven companies in the world. Google’s philosophy is to offer everyone in the world free access to all information around the world; however, various ethical issues were raised from different quarters against Google’s operations. The first issue raised is the privacy of Gmail provided by Google. Customers complained of Google searching the contents of e-mails and design “customized” ads based on the contents. Another concern is the legal use of keeping information that is sent through Gmail without user being protected by the right given by the Electronic Communications Privacy Act.(Stanwick, P.A. & Stanwick S.D. 2014). The Privacy of Individuals, is the second issue raised against Google, a reporter from CNETNews.com in just 30 minutes obtained and published as much relevant background information on Google’s CEO, Eric Schmidt and leads to Google sanctioning CNET for a year, this reaction contradict the goal of Google to organize information in the World. Google and the Chinese government is another major issue raised, where Google censored internet search results in China to suit the Communist government in China , by filtered out and restricted Chinese populace from having access to some major websites, this is seen as a violation of right, whereas the same Google resisted the request of US Justice Department to make available all the websites to aid defending the Child Online Protection Act of 1998...

Words: 973 - Pages: 4

Free Essay

Tyler

...Finals in what appeared to be one of the greatest series ever. The Spurs were looking for revenge after last year’s heartbreaking defeat after being up 3-2 in the series. In game 6 of last year’s NBA Finals the Spurs looked to have it in control as Tony Parker hit a couple big shots for the Spurs with a two possession lead under a minute to play. But just when you thought the Heat were out and fans were exiting from American Airlines Arena, something special happened. LeBron James hit a huge three pointer to bring the Heat back within 2 and then Kowhai Leonard missed 1 out of 2 free throws to give the Spurs a 3 point lead with just under 20 seconds left to play. Running back on defense everybody in the world knows LeBron is taking this shot and going to try and tie the game to send it to overtime. LeBron misses; the rebound goes to Chris Bosh as he kicks it out to Ray Allen, with Mike Breen on the call as he would say “BANG, TIE GAME.” Ray Allen tied the game with 5 seconds left and from that point on everybody knew the Heat were going to win and tie up the series and eventually win in game 7. Miami would go on to be back to back champions of the NBA. This year however doesn’t seem to be that easy at all as the Spurs are up a commanding 3-1 lead with game 5 back in San Antonio on Sunday night. You could argue on which has been better, whether it’s been the Spurs offense or defense. In game 3 they set an incredible NBA playoff record for shooting 75 percent in the 1st half. But the...

Words: 726 - Pages: 3

Premium Essay

Bullying

...born in England but at a young age moved to Fanore, County Clare, Ireland. You can't get more rural than Fanore, it has one main street, blink and you miss it. In fact the West of Ireland is notoriously rural and unspoiled. Fanore is nestled on the Irish Sea and is 10 miles from Quilty, the village where my Grandmother came from in County Clare. When I heard about this young girl taking her life after being subjected to bullying, it really hit home for me. My heart broke for her. All I could think was that she was like a lamb to slaughter. Thrown into an American High School, there was no way this sheltered child could have coped with such a sea change in culture. The District Attorney when speaking about the South Hadley High School administration, said that they had " a lack of understanding of harassment" when dealing with bullying at the school. So what exactly is bullying? The definition of bullying is "Bullying is a conscious, willful and repetitive act of aggression and/or manipulation and/or exclusion by one or more people against another person or people". (Sullivan 10). But Sullivan further describes bullying to contain the following: * Bullying is abusive and cowardly * Harm is intended. * It is repetitive and can occur over a short or a long period of time. * The person(s) doing the bullying has more power than the ones(s) being victimized. * It is often hidden from people in authority. * Bullies do not expect either to be caught...

Words: 1942 - Pages: 8

Premium Essay

Persuasive Essay Pro Death Penalty

...was reinstated in the 1970s and since then there have been thirty-four states to use it. As of July 1, 2015 there are thirty-one states with the death penalty and nineteen have abolished it. The death penalty should be abolished because there is a better alternative in life without parole, innocent lives are put at risk, and we pay millions each year to fund this process. First off, we have a much better way to punish people for the even most inhumane of crimes and we can find that in using life without parole. With death as a option after they commit such a crime, it is an easy way out of having to truly pay for their crimes. Life without parole is easily a better alternative because no one would want to spend the rest of their life in a prison cell until they died. There is also the option of life with the possibility of parole for an option, even then there is no guarantee for parole. The wait would be...

Words: 848 - Pages: 4

Premium Essay

Girth of a Nation

...Girth of a Nation “We have sparked a global obesity crisis. Way to go, America. Making the world safe for diabetes.” America has kissed the bottom end of the big obesitymeter – now sixty million American adults – thirty percent of the adults in the working age are obese. Problem? Certainly! But, what about the future? Have we treated our children in the right way – or have we led them on to the road of eternal obesity and everlasting oblivion? Well… Some have. Sixteen percent of American children are either overweight or obese. It’s not just the outraging teenagers who become obese; you find obesity as early as the age of two. Scary? Totally! Morgan Spurlock has written “Girth of a nation” as the second chapter of his book “Don’t eat this book” – it’s written in a colloquial language – but still a language containing in large quantities. You can see and example below: “America's growing waistlines are hurting the bottom lines of airline companies as the extra pounds on passengers are causing a drag on planes.” Morgan uses the rhetorical device of pathos – but not as we know it in general, but instead a negative way of pathos. Used in the way that you have no sympathy at all, for the case that Morgan Spurlock is trash talking. Morgan is having a guilt trip on the parents, to the obese children – the parents that led their children eat fast food, and do not require any kind of exercise and healthy lifestyle. In the same way that Morgan Spurlock argues for the irresponsibility...

Words: 665 - Pages: 3

Premium Essay

The Revolt of the Mother

...​Vasconcellos Fabiana Vasconcellos ENG 201 – 526 Apr. 20, 2010 Prof. J. Wynter Societies can be stratified in various ways, such as religion, social class, language, race, ethnicity, gender and sex. These distinctions are either socially constructed or born within the individual. Sex; for example, is based on the ascribed status since it is “imposed by nature” (Renzetti and Curran 137) and biologically determined. In contrast, gender is socially constructed since it “refers to the constellation of traits and behaviors that compose the categories masculine and feminine” (Renzetti and Curran 252). These gender distinctions are reinforced by stereotypes that contribute to social inequality and discrimination in the western societies. Throughout history, our society has always complied with gender roles, however today we are walking through a path to reverse them. Having been conformed to mother’s role for 40 years, Sarah Pen the main character in Mary E. Wilkins Freeman’ “The Revolt of the Mother” gains self-confidence to challenge traditional gender roles and reverses them in order to live in a better home. Our society has always characterized men and women in different ways and expected different behaviors from them. “[M]en have generally been the dominant sex and women have been subordinate to them” (Robertson 217). Men are also “strong”, “rational” and “aggressive” while women are “weak”, “emotional”, and “submissive” (Basow 1). These masculine and feminine traits show...

Words: 1466 - Pages: 6

Premium Essay

History 1302 Term Paper

...The United States of America is a declining global power related to the never-ending war, lack of political cohesion and the greed of Americans to self-indulge rather than attempt to make the U.S. a better place as a whole. The U.S. showed its vulnerability when New York City was attacked, the twin towers destroyed and thousands of innocent lives were lost, an event forever known as 911. How could such an event like this happen to the so-called superpower known as the United States of America? As stated on page 2 of the readings, the defense department was not defending their own borders. They were too busy defending other countries. While it is important as a superpower to help others in need, a government should first have all matters of “home” secure before extending a helping hand to others. That is a lesson learned at the expense of New York City. The borders of the U.S. were not secure enough to keep terrorists out. They crossed the U. S. borders, came right in, made their selves at home, blended into society, learned to fly airplanes and used that knowledge to destroy the sense of governmental security Americans had. Post 911, Americans have seen a great lack of political cohesion. President Bush lied to Americans to win support to launch a war on terrorism. In the words of Defense Secretary, Donald Rumsfield, “forget about exit strategies; we’re looking at a sustained engagement that carries no deadlines.” (2). that statement alone should have sent fear into the...

Words: 836 - Pages: 4

Premium Essay

Compensation & Benefits Wk7 Course Project

...Running heading: Course Project Week 7 Course Project Week 7 From a moderately successful retailer to one of the largest retailers in the world Wal-Mart has grown right before our very eyes. As America’s largest employer, Wal-Mart employs over “1.6 million employees” (Wakeup Wal-Mart, 2010). With that said one would assume that this Fortune 500 Company would have a respectable compensation and or benefit plan for their hard working employees, but sadly this is not the case. Unfortunately although Wal-Mart is famously known for their ridiculously price they are also well known for providing disastrous healthcare coverage plans to their employees. For instance Wal-Mart offers low premiums to their employees for their family coverage. Even though this may seem like a dream come true for many, the fact of the matter is that their high annual deductable cancels low premiums out. In fact, theses annual deductibles are so high that most employees find themselves having to pay thousands of dollars before Wal-Mart’s insurance decides to kick in to pay. Regrettably because of this many employees are forced to seek government help in the form of Medicaid and other subsidized care in order to obtain and afford their medical needs. What is even more alarming though is the way Wal-Mart plans to right their employee healthcare wrongs. To offset their current health care plans, Wal-mart executive are proposing the cutting of “retirement benefits by at least $200 million...

Words: 958 - Pages: 4

Premium Essay

Argumentative Essay: Gun Control Doesn T Kill People

...Guns do not kill people. People kill people. The person is the one who pulls the trigger, killing someone. A gun cannot kill a person by itself. Some people disagree, and because of this, there is an issue on gun control, whether people should freely possess them or not. The debate is between making gun laws more or less strict, letting people wield them freely or not.Though the results of laws being less strict are far more acceptable than laws being more strict. Some reasons include that when guns are removed, crime increases, possessing a firearm can help with self defense, and when guns are taken out, gun violence still exists. Primarily, removing guns causes more crimes. Samuel Francis, contributor of Gun Control: Opposing Viewpoints,...

Words: 1066 - Pages: 5