Equality and efficiency is there a trade off or they go hand in hand
•Download as PPT, PDF•
0 likes•1,138 views
Is there a trade off or they go hand in hand......?
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Equality and efficiency is there a trade off or they go hand in hand
Similar to Equality and efficiency is there a trade off or they go hand in hand (20)
Recently uploaded
Recently uploaded (20)
Equality and efficiency is there a trade off or they go hand in hand
- 1. In the name of ALLAH who is theIn the name of ALLAH who is the most Beneficent and the Merciful.most Beneficent and the Merciful.
- 2. Prepared by: Usman Sarwar (2443-SE/BSECO/F14)
- 3. 1. Economic Equality 2. Economic Efficiency 3. People Face Trade Offs 4. Life Example 5. What is Equality Efficiency Trade-off ? 6. Is there a trade off ? 7. Equality Vs Inequality 8. Income Distribution and Growth Sustainability 9. Economic Effects of Inequality 10. Advanced economies have steady growth 11. It’s a roller coaster for some 12. Lasting Effects 13. Factors effecting growth spells 14. No trade-off exists
- 4. It refers to equal life chances to provide all citizens with equal minimum of income, goods, and services It looks at the distribution of capital, goods and access to services throughout an economy An important ingredient in promoting and sustaining growth
- 5. An economic state in which every resource is optimally allocated to serve each individual or entity in the best way It relates how well a market or economy allocate scarce resources to satisfy unlimited wants
- 6. Trade off is a situation that involve losing one quality or aspect of something in return for gaining another quality and aspect
- 7. A student faces a trade off between studying for exam or to watch a much awaited movie.
- 8. An equity-efficiency trade off exists whenever activity in a given market may simultaneously increase productive efficiency and decrease distributive equality, or vice versa.
- 9. Many economists believe that there is trade-off between equality and economic growth. Then why do governments try to reduce it? The answer is a simple one: Because there is NO trade-off Every government would want wage gap and inequality if it was good.
- 10. Inequality gives a sudden boost But equality is much better The growth through it might be slow but is sustainable
- 11. Some inequality is essential to the effective functioning of a market economy Longer growth spells are robustly associated with more equality Increased inequality may shorten growth duration
- 12. Social unrest and civil disobedience Limited access to health care and education Volatile incomes, high debts Capital investments skewed towards preferences of the rich
- 13. • Countries in the chart • United Kingdom • United States • Both have a graph that is going uphill smoothly • There are no sudden drops
- 14. • Four countries in the chart • Brazil and Chile have a smooth ride • For Cameroon and Jordan it’s a roller coaster
- 15. •The graph has years in growth spells on y-axis and inequality on x-axis •Clearly it can be seen when inequality is low growth spell lasts longer •And the more the inequality, the less sustainable is growth
- 16. Factors include : •Political Institution •Trade Openness •Exchange rate competitiveness •External Debt •Foreign direct investment •Most important factor is Income distribution
- 17. Inequality might give a sudden boost but it can also create a economic boom similar to 1930s and 2008 Growth this way is not sustainable Equality is better in the long run Growth through equality is sustainable And it actually increases economic growth by a fair margin Therefore there is no trade-off between inequality and efiiciency
- 18. ‘‘..the conflict between equality and economic efficiency is inescapable.’’ -Arthur Okun (1975)