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From: carnes@gargoyle.UUCP (Richard Carnes)
Newsgroups: net.politics.theory
Subject: Redistribution of income and wealth
Message-ID: <186@gargoyle.UUCP>
Date: Fri, 13-Sep-85 18:59:15 EDT
Article-I.D.: gargoyle.186
Posted: Fri Sep 13 18:59:15 1985
Date-Received: Sat, 14-Sep-85 07:56:55 EDT
Reply-To: carnes@gargoyle.UUCP (Richard Carnes)
Organization: U. of Chicago, Computer Science Dept.
Lines: 40

Obligatory stack of nested quotes:

In article <10365@ucbvax.ARPA> mcgeer@ucbvax.UUCP (Rick McGeer) writes:
>In article <746@cybvax0.UUCP> mrh@cybvax0.UUCP (Mike Huybensz) writes:
>>In article <10286@ucbvax.ARPA> mcgeer@ucbvax.UUCP (Rick McGeer) writes:
>>>In article <727@cybvax0.UUCP> mrh@cybvax0.UUCP (Mike Huybensz) writes:
>>>>In article <3520@topaz.RUTGERS.EDU> josh@topaz.UUCP (J Storrs Hall) writes
>>>>>I would absolutely agree that a market
>>>>>would never start a war of agression, but then I think this a good thing.
>>
>>Any basic economics text can explain (via diminishing marginal return)
>>the benefit of redistribution of income.  Clearly redistributing income is
>>not a zero-sum game with respect to social benefits.
>
>Well, now, my basic economics texts must have missed this.  The only effect
>of income redistribution that I remember was an (alleged) countercyclical
>effect, which is not by any means undisputed.  

The following is from A. C. Pigou, *The Economics of Welfare*, 4th ed.
(London: Macmillan, 1948; originally published 1932), p. 89.

	It is evident that any transference of income from a
	relatively rich man to a relatively poor man of similar
	temperament, since it enables more intense wants to be
	satisfied at the expense of less intense wants, must
	increase the aggregate sum of satisfactions.

This is just common sense.  If my rich uncle Jim gave me $10,000 he
would hardly notice it was missing; that's about what he blows on a
good weekend.  But boy would I notice it.  Now if I could only get
Jim to understand this.  And don't tell me you can't have an
aggregate sum of satisfactions unless you wish to concede that
economic growth as measured by increase in GNP is a mere meaningless
number.

This is one reason why I am opposed to state lotteries:  they
redistribute wealth in the wrong direction, besides preying on the
poor.  

Richard Carnes, ihnp4!gargoyle!carnes