Spreading the Wealth Around: Reflections Inspired by Joe the Plumber

30 Pages Posted: 24 Mar 2010

See all articles by N. Gregory Mankiw

N. Gregory Mankiw

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

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Date Written: March 12, 2010

Abstract

This essay discusses the policy debate concerning optimal taxation and the distribution of income. It begins with a brief overview of trends in income inequality, the leading hypothesis to explain these trends, and the distribution of the tax burden. It then considers the normative question of how the tax system should be designed. The conventional utilitarian framework isfound to be wanting, as it leads to prescriptions that conflict with many individuals’ moral intuitions. The essay then explores an alternative normative framework, dubbed the Just Deserts Theory, according to which an individual’s compensation should reflect his or her social contribution.

Suggested Citation

Mankiw, N. Gregory, Spreading the Wealth Around: Reflections Inspired by Joe the Plumber (March 12, 2010). Harvard Institute of Economic Research Discussion Paper No. 2182, Available at SSRN: https://ssrn.com/abstract=1574304 or http://dx.doi.org/10.2139/ssrn.1574304

N. Gregory Mankiw (Contact Author)

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