On The Wealth Gap Analysis
One of the presidential candidates that I have been truly following is Bernie Sanders. I follow him because his politics and visions are closer to mine than the rest of the candidates. Even though I do mostly agree with his entire platform, but one of his central policies that I have found questionable is “On the wealth gap”. “On the wealth gap” policy briefly will help reduce economic inequality. The policy sounds really great and can improve the economic well-being of the poor, but will that encourage society to work hard to get the most it can from its scare resources? As a future international political economist, I know that society faces tradeoff between efficiency and equality when government policies are designed. Even though I am for
equality policies, it does not mean I should ignore the tradeoffs that are involved in those policy decisions. Mr. Sanders will achieve his goals by designing several policies that will equalize the distribution of economic wellbeing. For instance, guaranteed employment and universal income policies are some of his policies that will try to help members of society who are most in need. With the pursuit of greater equality, these policies reduce efficiency. Because employment will be guaranteed for all, job market and firms will stop looking for the best labor that will do the work efficiently. Meaning individual will no more strive to attain their best potentialities. Also, in case employers fire those who are not skillful or those who are no more needed for the job, it means welfare system or unemployment insurance will be guaranteed to those individuals. Basically, these kinds of policies reduce the reward of working hard to achieve goals. At the beginning of this class, I have learned in one of the Ten Principles of Economics that people face tradeoffs and making decisions requires trading off one goal against another. Using this trading off concept to analyze Mr. Sanders’s policy plan, I am certain his policies will definitely face some trouble when implementing.
equality policies, it does not mean I should ignore the tradeoffs that are involved in those policy decisions. Mr. Sanders will achieve his goals by designing several policies that will equalize the distribution of economic wellbeing. For instance, guaranteed employment and universal income policies are some of his policies that will try to help members of society who are most in need. With the pursuit of greater equality, these policies reduce efficiency. Because employment will be guaranteed for all, job market and firms will stop looking for the best labor that will do the work efficiently. Meaning individual will no more strive to attain their best potentialities. Also, in case employers fire those who are not skillful or those who are no more needed for the job, it means welfare system or unemployment insurance will be guaranteed to those individuals. Basically, these kinds of policies reduce the reward of working hard to achieve goals. At the beginning of this class, I have learned in one of the Ten Principles of Economics that people face tradeoffs and making decisions requires trading off one goal against another. Using this trading off concept to analyze Mr. Sanders’s policy plan, I am certain his policies will definitely face some trouble when implementing.