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Defending the One Percent by Gregory Mankiw

Estudaremos um texto para o nível C1/C2 que trata sobre o debate da desigualdade de renda e as implicações de políticas públicas relacionadas à redistribuição de renda, destacando contribuições e desafios econômicos enfrentados pela sociedade.

Preparation

  1. Is income inequality necessarily bad for society?

  2. How does income inequality impact democracy?

  3. How does technological advancement contribute to income inequality?

  4. Is it possible to achieve economic equality without sacrificing efficiency?

  5. What role should governments play in addressing income inequality?

Reading

In a perfectly equal society, everyone earns the same, ensuring both equality and efficiency. However, the introduction of a new product by an entrepreneur, like Steve Jobs with the iPod, disrupts this balance, creating a vast income disparity. This scenario has unfolded in the US since the 1970s, where average incomes have grown, but disproportionately so for the top 1 percent, raising questions about the role of public policy in addressing income inequality.


Mankiw argues that this inequality results from skill-biased technological changes and the entrepreneurial contributions that drive economic growth. He challenges the view that inequality is inherently inefficient or unjust, suggesting instead that high earners often receive their wealth through significant contributions to society.


The debate over income redistribution hinges on philosophical views as much as economic analysis. Mankiw critiques the utilitarian basis for redistributive policies, suggesting a "just deserts" perspective, where individuals are entitled to the wealth they create through their efforts, barring externalities or public goods justifications for government intervention.


This complex issue intertwines economic realities with political philosophy, where no single approach provides all the answers. Future research may offer more clarity, but fundamental disagreements about the fairness and purpose of income distribution are likely to persist.



The author

N. Gregory Mankiw is a distinguished American economist, recognized for his contributions to macroeconomics and economic policy. As a Harvard University professor, he has significantly influenced both academic circles and policy-making through his work on New Keynesian economics, which integrates microeconomic principles with macroeconomic analysis. Mankiw's tenure as the Chairman of the Council of Economic Advisers under President George W. Bush and his authorship of the seminal textbook "Principles of Economics" underscore his pivotal role in shaping economic education and policy. His research covers a broad spectrum, including monetary and fiscal policy, economic fluctuations, and growth, making him a key figure in contemporary economic discourse.


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