11.18.10 Econ

11.18.10 Econ - Econ 11/18/10 Egalitarian income parade =...

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Econ 11/18/10 Egalitarian income parade = everyone has the same average income The one-hour U.S. Income Distribution Parade Total income in each country is 200,000 dollars In Marxville = everyone has the same income (1 st Quintile, 2 nd Quintile, 3 rd … 5 th all have the same income, all hold 20% of total income) Buffettville = only the 5 th quintile has 100% of the income, everyone else receives 0% of the income Middleville = income is not equally distributed, everyone has income though (1 st Quintile 4%, 2 nd Quintile 7 %, 3 rd 15% of total income, etc. etc.) Perfect equality line is where y = x line where y axis is Income % and X-axis is Population % The closer an income distribution graph moves to perfect equality, the closer it gets to equal income distribution Marxist believes that the only reason other people have more money than others is because of misallocation of property. For perfect income equality, Marxist argued that we should avoid property rights. Only after that we can have perfect income equality
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11.18.10 Econ - Econ 11/18/10 Egalitarian income parade =...

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