Tuesday, January 3, 2012

Mankiw's arguments on taxation

So far, I do not see the real content of this proposal.


How is it suppose to be determined the social valuation of people's contribution? 

In case of a disagreement, how is it to be settled?

The way it is formulated, it seems to me that it is a rationalization of the outcome of a market economy, adorned with the recognition of the typical market failures.

It seems to be that the emphasizes is put on individual's freedom (I know this seems out of context, but I don't really think it is ; notice the context in which it is introduced, for instance, the references to the competitive equilibrium as the core - if you don't like it, you can walk away) above any sense of ethical criteria leading to compensation.