The debate over income redistribution is a very old one that raises the passion of many people. By definition, income redistribution means that some people will be made worse off in order to make others better off. The central argument against the redistribution of income relies on efficiency. Labor, like any resource, is paid its marginal product. Some people have skills and talents that yield a high marginal product, and others do not. This is considered the cruel fate of the marketplace. A person’s marginal product can always be improved by learning a new skill that has a higher marginal revenue product than their current skill. However, in the end, … Continue reading Karl E. Case, Ray C. Fair