Concept of Fairness

Marginal Revenue Product

Fairness of Outcome

The concept that workers' wages should equal their Marginal Revenue Product (MRP), which is the value of what they produce. If wages are less than the MRP, workers may become dissatisfied.

Diamond vs Water Paradox (Fairness of Outcome Concept 2)

The idea that even if wages equal the MRP, it may not necessarily be fair. This concept questions whether the MRP truly represents societal value, as seen in the Diamond Water Paradox.

Pay of Athlete vs Teacher

Specialization of Work

John Rawls' theory of justice (Fairness of ______ )

John Rawls' theory of justice, which focuses on ensuring that the worst-placed person in society can still live sustainably. Rawls did an experiment called a Veil of Ignorance, where income distribution is determined without knowledge of one's own position in society. Everyone chose a distribution where everyone can live sustainably

Robert Nozicks opinion

Fairness of Process

Robert Nozick's belief that the most important aspect of a society is freedom, and any voluntary agreement between parties is fair, regardless of the outcome.

anything that is a voluntary agreement between two parties is fair

(someone kills all buffalo that creates living, say you got a place to stay, technically ‘fair’)

Amartya Sen’s Development as Freedom

Fairness of Process

The concept of Equality of Opportunity, which emphasizes the importance of equal opportunities for all individuals, regardless of the outcome. Amartya Sen's Capabilities approach aims to increase freedom and ensure that outcomes are not influenced by unequal starting positions.

• purpose is to increase freedom or ability to choose what they want to do

• make sure any outcome between people is not due to unequal starting positions

• Any outcome is fine; as long has everyone has Equality of Opportunity

Intergenerational Mobility

The extent to which a child's opportunities and income are dependent on their parents. Higher intergenerational mobility indicates a society with greater equality of opportunity.

Liberalist view of Marginal Revenue Product

competition between employers will ensure that its close

if there isn’t a monopoly, people will leave to companies that pay better

For a liberal, they think that this is an important way to think about fairness

competition between free market

Marxist View of Marginal Revenue Product

would argue that the extent to which this is true depends on conditions in the labour market

There is a multitude of things that impact wages

structures in place so the wage remains way lower than the marginal revenue Product

Unemployment rates, Social Assistance Rates

situations with high unemployment, Marxist argues that because of the desperateness of people, wages will not go up, can just employ someone else for less

What liberals argue about use value

Use value is exchange value

Packback Question: Is Income Inequality between genders growing or decreasing?

• Comparing to 1960’s, the Income Inequality is decreasing

• Starting at 2000’s, Income Inequality is increasing/stagnant

• If not a liberal, social value is determined by our societal standards

• Nursing, Childcare

  • Feminized Occupations

• Occupational Choice: Women are overrepresented in occupations that traditionally pay less

• These occupations are valued less in our society