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Welfarism's Envy Problem Extends to Popular Judgments

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  • Matthew Weinzierl

Abstract

Economists use a welfarist approach to policy evaluation, but doing so can lead to recommendations that violate seemingly wise non-welfarist principles. I explore one example: the proper tax policy response to envy. Using a novel survey, I find that a majority of US respondents are skeptical of envy-based redistribution, even if they are told that its direct effect is to increase welfare. This skepticism is consistent with a long history of judgments by economists, including leading welfarists. Such conflicts between direct welfarist analysis and prevailing normative principles challenge economists to consider modifying our dominant method of policy evaluation.

Suggested Citation

  • Matthew Weinzierl, 2018. "Welfarism's Envy Problem Extends to Popular Judgments," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 28-32, May.
    • Handle: RePEc:aea:apandp:v:108:y:2018:p:28-32
    Note: DOI: 10.1257/pandp.20181001
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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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