Equality and Efficiency REV: The Big TradeoffOriginally published in 1975, Equality and Efficiency: The Big Tradeoff is a very personal work from one of the most important macroeconomists of the last hundred years. And this new edition includes ""Further Thoughts on Equality and Efficiency,"" a paper published by the author two years later. In classrooms Arthur M. Okun may be best remembered for Okun's Law, but his lasting legacy is the respect and admiration he earned from economists, practitioners, and policymakers. Equality and Efficiency is the perfect embodiment of that legacy, valued both by professional economists and those readers with a keen interest in social policy. To his fellow economists, Okun presents messages, in the form of additional comments and select citations, in his footnotes. To all readers, Okun presents an engaging dual theme: the market needs a place, and the market needs to be kept in its place. As Okun puts it: Institutions in a capitalist democracy prod us to get ahead of our neighbors economically after telling us to stay in line socially. This double standard professes and pursues an egalitarian political and social system while simultaneously generating gaping disparities in economic well-being. Today, Okun's dual theme feels incredibly prescient as we grapple with the hot-button topic of income inequality. In his foreword, Lawrence H. Summers declares: On what one might think of as questions of ""economic philosophy,"" I doubt that Okun has been improved on in the subsequent interval. His discussion of how societies rely on rights as well as markets should be required reading for all young economists who are enamored with market solutions to all problems. With a new foreword by Lawrence H. Summers |
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American assets attitudes average basic benefits Big Tradeoff billion Brookings Institution capital capitalist citizens coercion collectivized competitive Constitution of Liberty consumer contribution costs deprivation differentials discrimination discussion dollars domain of rights earnings economic inequality economists effort egalitarian Equality and Efficiency equality of income equality of opportunity ethical example fair family income federal financing freedom Hayek incentives income and wealth income distribution income tax individual inefficiency inequality of opportunity interpersonal comparisons issues John Rawls Karl Polanyi labor leakages leaky bucket legislation Lester Thurow liberty marginal product market ethic marketplace Milton Friedman Okun ownership percent political process poor poverty line preference for equality principle programs progressive taxation R. H. Tawney Rawls redistribution reform rewards rich saving and investment society standard tax rates Theory of Justice transfer transgression verdict vote wages welfare workers