Saturday, August 13, 2016

More income inequality, please

The notion that income inequality is bad is ludicrous.  Which of the following income distributions do you prefer to which others?

Person               Income               Income               Income               Income
Number             Case 1                Case 2                Case 3                 Case 4
   1                        10                       5                        10                        3
   2                        20                       5                        10                        8
   3                        30                       5                        10                        8
   4                        40                       5                        10                        8
   5                        50                       5                        11                        8

Clearly, Case 1 is the most preferred.  Yet, it has the most income inequality.

The case rank from high income inequality to low is:  1, 4, 3, 2.  This does not comport with what a reasonable person would consider desirable.


Assuming that charity is allowed, but not Government income redistribution, my preference, from best to worst is: 1, 3, 4, 2.

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