Unequal income distribution, a market failure?Watch
Agreement of conditions-t
Great minds eh Paw!
Linda (plus the other IB'ers) :
The IB syllabus doesn't say that inequality is a market failure per se, merely that inequality of income and weath is a possible cause of market failure. It all boils down as to the goals of individual governements really and you are free to argue that income equality is a 'good' thing as you long as you discuss both sides of the 'case'.
We take saving to be an economic bad over here, we don't even dispute if it's good or not. I find it wierd that people defend or even talk about the economic plus points of saving.
Thats cus you are in a recession. If you have problems with inflation savings can be quite a plus as it decrease aggregate demand.
If there's a serious infaltion no one would keep their money in the bank, so it wouldn't help you much in practice.