SOC 102 Lecture Notes - Lecture 13: Group Cohesiveness
Document Summary
Marginal producivity the idea that inequality results because people make unequal contribuions and are rewarded accordingly. Ex: stephen ross and alfred taubman made large contribuions to society and were rewarded. Unequal contribuion=unequal compensaion this seems fair. Siglitz does not agree with marginal producivity. Inequality is necessary for a capitalist system to work. For the economy to grow, people must work harder and smarter. People will only do this if they will receive more money for doing so. Seeing those who are richer causes me to strive for greater wealth through work, savings and investment. First argument is fall people who receive more do not necessarily contribute more. Supports the second argument he believes that inequality does provide incenives. However, our current inequality is far greater than needed to provide incenives and that the current degree of inequality creates signiicant harm. Current inequality is more than what"s needed to to revise those inequaliies, much more harmful than helpful.
