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economic equity

Published on Dec 14, 2015

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PRESENTATION OUTLINE

economic equity

Mr. melkonian

when we say 'equity' in economic terms...

distribution that is fair

sometimes we're saying let's share the wealth!

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other times, rewards to be proportionate

with effort/workload

this gets conflicted in a hurry

marx

having an economy where people share would bring out the best in them
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capitalism

income inequity is the norm... self-interest, accumulation of wealth
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prevailed in all successful nations

always huge disparity in incomes however
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canada has been pretty good

compared to the states - decent Human development index (HDI)

27,600

median individual income canada (middle value)

35,000

mean individual income (average)

which of the two is more representative?

outliers

no one likes outliers...

quintile

one fifth of population for each bracket of wealth
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wild disparity

not as bad as the united states, but still embarassing
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60% of canadians get 30% of total income

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40% of canadians get 70% of the income

reasons for income inequality

capitalism is efficient at producing goods and services

but it breeds inequality in income 
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anyone can get in at any time

to address any market need

people also can suddenly stop caring

and your item becomes obsolete overnight

people have different physical/mental abilities

all of us can play basketball... not many like this guy

alzheimer's might be cured

high demand, low supply =high income

people differ in degree of education/training

people expect attending post-secondary to make up for time lost-be sure you're actually learning...

some people are willing to work longer/harder than others

even in the same occupation - different people place different values on leisure/income

assumption of risk/responsibility usually rewarded

risk premium - brave entrepreneur, dangerous occupations

luck

inherit, marry, lottery

health

sudden injury/sickness 

family background can affect future earning

on average, these kids will make more money- inheritance, connections, passing of business

market power =higher income

big guys generally crush smaller ones
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discrimination... reversed

regional economic disparity

people in newfoundland make less money than people in ontario
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test wednesday!

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