Verified Document

Equality Efficiency Arthur Okun Argues That A Essay

Equality Efficiency Arthur Okun argues that a clear line must be drawn between dollars and rights. At the heart of his argument is that there is an inherent conflict between the two in a capitalist democracy, and politicians can only resolve this conflict through "The Big Tradeoff." With respect to rights, Okun notes that they are fundamentally different from dollars in that they are inalienable and equally distributed, and that as such they cannot be bought and sold, nor distributed in any other manner. Rights, therefore, must be held outside the market, otherwise they will have a price and lose their inalienability. Dollars are different because they are not inalienable, and they can be traded or used as incentive. He thus argues that they two are fundamentally distinct from one another, and must be held separate as a result. There can be no blending of the two, or rights will no longer have the same meaning in society.

Okun believes that dollars often transgress on rights. He views the conflict between the two arising from a system where everybody has the same rights, but where economic outcomes are dramatically different. He sees uneven economic outcomes as representing "uneasy compromises rather than fundamental inconsistencies." This makes the study of economic outcomes under equal rights to be an economic one, since it very specifically involves making tradeoffs where the conflict exists. It is here that Okun sees dollars as transgressing over rights. One example that he cites is within the

Theoretically, everybody has the same rights under the law, but those with the money can exert greater influence over the implementation of the law, and that gives them "more" rights than those without money. Thus, dollars transgress upon rights. Okun sees the legal system as being one of the most important areas where the rights afforded to all Americans by law are expressed differently to different socioeconomic classes. A similar situation would be the funding of public schools through property taxes, something that inherently means wealthier areas will have better-funded schools than areas with a low property tax base.
Okun's view that dollars sometimes infringe on rights is accurate, and there are many more examples that can be cited. The underlying principle is that when a public good that is supposedly a right of all Americans is subject to market forces -- be they property values, legal fees or something else -- then dollars are put in a position to infringe on the rights of those who do not have the same amount of dollars. His assertion that "a clear line must be drawn between dollars and rights" is more of a personal opinion that he holds. Each democratic society must choose for itself what tradeoffs are appropriate. This,…

Cite this Document:
Copy Bibliography Citation

Related Documents

Critical Thinking Analysis of "Equality
Words: 1030 Length: 4 Document Type: Term Paper

In an economy that is based primarily on private enterprise, public efforts to promote equality represent a deliberate interference This passage posed crucial questions from the reader, one of which is the determination of the terms "split-level institutional structure" and "capitalistic level" for better comprehension among readers, especially those who does not have any background in economics. Apart from this fault in Okun's conceptual framework, this passage also failed to

Home Loans for Low Income People
Words: 3197 Length: 12 Document Type: Term Paper

Low Income Home Loans as Public Policy Since World War II, the United States government has developed public policies that aim to increase opportunities for home ownership through direct housing grants, loan guarantees, and targeted tax breaks (Dye, 2001). For many low-income families, these policies enabled them to purchase a home. Many of these policies were focused on providing assistance to low-income people. The Housing Act of 1959 expanded the Federal Housing

Economic Democracy Comparing and Contrast
Words: 1653 Length: 5 Document Type: Term Paper

Instead Dahl assumes the notion that it would be best to have "a system of economic enterprises collectively owned and democratically governed by all the people who work in them," meaning that he differs from the notions of Okun and the Friedman's by proposing something radically different to promote the ultimate goal of democracy (Dahl 92). Neither equality nor freedom is necessary to fix the relationship between the economy and democracy, but rather a completely different

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now