Metsfanmax wrote:BigBallinStalin wrote:That's just not true. 1. You can't measure this in order to know that what you're saying is true. Try "adding happiness" and compare the responses across individuals. 2. Individual's marginal utilities over anything can differ because it depends on each person's opportunity cost, which also varies. You're asking us to make interpersonal comparisons across the values that could have been gained by each individual. Who knows what that value may be. Using your argument, it could be the case that a marginal utility of a dollar to rich guy X is greater than the MU of $1 to poor guy Y. You've switched from 'value' to 'utility', but let's assume you'll stick with utility. You can't interpersonal comparisons of utility because it's cardinal utility which assumes that utility is comparable across individuals. It's like assuming: "assume I'm right. Then, my conclusions follow."
Again, your focus on the individual leads you astray. It's entirely possible that any given person who makes $100,000 may value the next dollar as much as someone who makes $10,000. But when you're discussing national (tax) policy, you are forced to average over all those utility functions. And, on the average, the value of the marginal dollar will be substantially greater to the person with the lower income than the person with the higher income. You can focus on the fringe cases if you want, but th
en you're no longer interested in maximizing utility (in other words, if I hurt a few millionaires who really do care about every cent I make, that's ok because I'm still immensely increasing the quality of life for many very poor people, and so utility is still increased).
Do you really want to insist that I prove that the average person making $10,000 values a marginal dollar more than the average person making $100,000?
For example, would you say that the utility of a person with "basic needs + $1" is greater than the utility of a person with ā99% basic needsā? With your current position, you must say, āYes.ā But how do you know this? You're presuming that you have an unexplained knowledge of each personās utility function. Youād have to assume that U = f(x,y,z) (whatever that may be) holds for all individuals. You have yet to demonstrate that this is true. Another implication of your stance is that ārich people have more utility than poor people,ā but this is false because it doesnāt follow that having an income greater than ābasic needsā leads to greater utility for all individuals. You lack a valid means for making interpersonal comparisons of utility because cardinal utilityāmeasured in whatever formāwould fail to capture each personās utility in a form suitable for making such comparisons. Obviously, there are people with incomes of ā< basic needsā who have greater utility than a person with ā> basic needs.ā
"Do you really want to insist that I prove that the average person making $10,000 values a marginal dollar more than the average person making $100,000?"
If you wanted to be guided by valid reasoning, sure. If not, then why should people take your flawed argument seriously?
The underlined doesn't follow. I can still be pro-utility-maximization while not favoring your approach. You're just assuming that the your favored policies actually do maximize the utilities of people temporarily within an arbitrary category.
If you rely on arguments which are not valid, then you shouldn't assume you're actually helping poor people.
Metsfanmax wrote:Also, you're still ignoring the biggest problem of your approach:
How does your approach compare their loss to those who make <= $10k per year? That is, how do you compare the loss incurred by the person who has "basic needs +$1" to the gain by person Y who has "x% of basic needs"? You're still transferring wealth from obviously poor people ("basic needs + $1") to poorer people ("99% basic needs").
This is why we have a progressive tax system. The lower you are on the "basic needs" scale, the less your wealth is redistributed to those below you. A properly designed redistribution scheme of this kind would take that into account, and would never allow you to become poorer than the person you're giving your wealth to. Someone with basic needs +$1 is going to be a net receiver of tax revenue, not a net contributor, so discussing what happens to their input dollar is meaningless.
I know how a progressive tax system works, but that's not what is applied consistently because there are other taxes as well--e.g. sales tax, 'fees' imposed by bureaucracies, etc.--regardless of your income. Why does that matter? Because the assumption of a "properly designed redistribution scheme" is impractical; you'd get similar outcomes in the variety of taxes of today.
Also, there's expansionary monetary policy which causes inflation, thus hurting people of all income categories. At this point, you're against expansionary monetary policy in order for your scheme to work, so your scheme becomes incoherent too.
Then, progressive tax system along with subsidies to the poorest category creates perverse incentives (people get rewarded for remaining > "basic needs," which again is an arbitrary concept).
In turn, you would be pushing some people in the 2nd poorest category into the poorest category. If you're not going to be practical, then there's no way around this unintended consequence.
Metsfanmax wrote:No, that's not a straw man. You have to focus on individuals in order for your analysis to make sense. "The poorest" involves some individuals who do move out of that category, but also "the poorest" refers to a group of individuals who will remain in that category. Do you want to help those who have the highest chances of moving to greater incomes? Or do you want to continue subsidizing those who'll remain in the poorest category?
I am not talking about categories of poverty here. I'm not trying to have a discussion on income mobility, so you are straw-manning. Imagine a zero relative mobility world, if you like. I'm only taking about how to move the absolute level of the bottom up,
without trying to make any of them richer than their peers.
Talking about categories is inescapable. You just defined it as "basic needs." You're not making any sense.
So, yes, you want to continue subsidizing those who'll remain in the poorest category?
RE: Underlined, you want 100% wealth equality? Do you understand the implications of that?
Metsfanmax wrote:Your insistence on "absolute" poverty still doesn't make sense because it compares one bundle of goods ("basic needs") to other bundles of goods. You wouldn't know what "basic" means without making a comparison to other goods. So, you are making income comparisons since income is just a proxy of goods. How can you deny that??
You
can compare that bundle of "goods" but that is not the point. I believe there's a minimum access to that bundle of goods that is a moral requisite, which therefore perhaps transcends a normal economic description. I can say that someone should have access to food and water without making comparisons to owning a car, because you can't eat a car. (If you want to give them a car so that they can sell the car and have enough food to eat, though, I'm fine with that.)
Dude, again, your "basic needs"/"minimum access" relies on comparisons of bundles of goods to other bundles of goods. Without comparisons (which is what you are making), then you wouldn't know what "basic" means. My position holds here, but it won't make sense to you because you've been making categories without realizing it.
Metsfanmax wrote:The point about income mobility is that individuals do cross categories, but a focus on categories neglects to factor this is in. Focusing on the poorest category can be less fruitful since more and more subsidies would go to those who remain the longest in the poorest category. You keep ignoring this, which is odd. You do realize how counterproductive your approach can be, right?
Again, you're straw-manning because
I'm not focusing on categories. I'm focusing on whether people have what they need to survive. If the poorest segment of population all had mansions and nice cars, then I wouldn't be nearly as fervent in my hope for such a redistribution scheme.
Obviously, it has been demonstrated that your approach necessitates a focus on categories. " what they need to survive" is a standard which places people into at least two possible categories: those that have what they need to survive, and those that don't.
"Basic needs," "minimum access," and "what one needs to survive" require different amounts of goods. It's impossible to debate someone with a constantly shifting standard.
Metsfanmax wrote:Finally, you don't know that your policy would be helpful because you focus on one arbitrary category. Fifty years ago, your standard would've changed, and 50 years from now, "basic needs" will be greater than the "basic needs" of today. There is no "absolute poverty"; it's a nonsensical term. There's no way of satisfying your position because you'll be stuck on subsidizing that category.
People will need to eat 50 years from now.
Okay, that response fails to address the problems with your argument. It follows that you don't understand the helpfulness (and harm) of your policy. Again, by relying on constantly changing standards of poverty, it is impossible to debate you. PLAYER does this.
Metsfanmax wrote:2. The Social Contract argument is nonsense. You can appeal to any vague thing provided by government and claim, "ah people owe government X-amount of whatever." Who knows how that calculation is done (in reality, it isn't, and current tax rates don't capture it. It's easily the case that government is taking too much for the services it provides--which most (a) don't want, and (b) aren't asked. This goes back voluntary v. involuntary exchange. You can't tell if people demanded goods from government due to the nature of exchange; you magically can though.
This has nothing to do with the social contract. If you don't
use the resources provided by a government, I don't think you owe them anything. But if you do, it's absurd to claim that you can mooch someone else's resources for free and then claim that you don't owe them anything. That would be making a mockery of the property rights you care about.
Sure, free-riding is a problem, but the underlined still holds.
Your position still supports slavery. If you get an education from a school which receives government money, then some portion of people can lay claim to your social capital. You really shouldn't ignore this flaw in your position.
If you don't address this flaw of your argument, then I really don't have to address your other caveats and weird conditions of imagined obligations that are based on nonexistent contracts. Contracts delineate duties, as do real informal rules--e.g. those within a family. Insisting on some flawed set of moral rules is a poor substitute.