Introduction
Wealth distribution has been a matter of discussion for the longest time. Equality in the society makes it a major concern. For this reason, the study of economic distribution and its implications is important in order to understand the implications of unequal distribution. The following paper attempts to give some instances of problems faced in current economic distribution. Consequently, in order to gain different perspectives on distributive justice, the investigation uses insights from Nozick and Rawls. The contrast in their opinions gives a proper layout of different distributive justice positions. In the same way, the contrast opens way to viewing Rawls two principles of justice. It gives significant relation to the veil of ignorance perspective and how it relates to equality of opportunity. Consequently, the exploration looks to find the right ways to distribute money in the United States.
There are several factors that could be identified as problems of the current economic distribution. The economic distribution problems can be divided into micro economic problems and macro-economic related implications. One of the problems in current economic distribution is externalities relating to economic progress. In essence, externalities include the deregulation activities of different governments. Therefore, the access to manipulation of externalities is one of the hindrances to the economic progress and inequality in wealth distribution. Secondly another economic distribution problem identifiable is the issue of monopoly. Monopoly affects small scale industries by mitigating any potential market exploration potential. The phenomenon of monopoly causes inequality since it reduces the value of equal opportunity in the society. Another factor that causes problems in economic distribution is volatile prices. Instability in prices causes the people to have to find ways to increase their income in order to cope with the new prices. In essence, volatile prices cause inequality and poverty margins to increase because more people seize to afford the basic essentials they need in life and their quality of life is reduced significantly.
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In the same way, other macro-economic factors that cause problems to the current economic distribution include unemployment. Income is gained only through some sought of income from employment or investment. For this reason, the lack of employment also causes an increase in the poverty margin due to the lack of enough funds to circulate. Consequently, unemployment also causes significant margins in the distribution of wealth. Another problem in the economic distribution is instances of recession. Recession causes the economic welfare of states to reduce and thereby reducing the wealth of the nation. It leads to an amplification of problems related to inequality and unemployment. Lastly, another problem that could be identified to cause economic distribution problems is inflation. Inflation leads to volatile prices that are transferred to people who cannot afford the important resources.
The academicians Rawls and Nozick give different views on distributive justice. In essence, Rawls puts it that a society should be more communal in its distribution of wealth. Essentially, he suggests that the distribution mechanisms should be conducted in ways that maximize the basic rights of the people. The perspective held by Rawls holds the ‘robin hood’ phenomenon of taking from the rich and giving to the poor. Distribution of fortune in this manner allows the people with fewer resources to share in the bounty of people with surplus resources (Rawls, 1985). The tenet held by Rawls hold it that instead of giving advantage to the rich because they are rich, justice should be used as a platform to maintain equality between different parts of the society. In essence, instead of taking from the rich, Rawls suggests that governments should ensure that the wealth held by the rich helps improve the lives of the poor as much as possible (Rawls, 1985). That is, the resources utilized by the rich should be used to help the poor as far as possible.
On the other hand, Nozick puts it that individual rights are important in proper distribution of wealth. According to Nozick, as long as the transactions held by different people are fair and legal, each of the participants is responsible for the share they get in the transaction (Nozick, 1974). In this way, it cannot be said to be unfair to gain wealth through legal means. There is no obligation to share such wealth in this case. As far as possible, the Nozick perspective hinges on the views of capitalism. Capitalist nations promote industry and innovation from each member of the society. Essentially, the opportunity to enterprise mitigates the inequality activities. In this way, the contrast between Rawls and Nozick appears on their views of wealth. Rawls views wealth as a right while Nozick views the same as a utilization of capitalism opportunities (Nozick, 1974). The contrast is also observed on the basis of equality as a right. Novick therefore believes that expecting the rich to share their wealth with the poor is an injustice and is immoral.
The views held by Rawls can be usually summarized into two basic principles. The principles touch on the basis of political justice and social justice. The first of the principles states that each person is to have equal right to the most extensive system of civil liberties compatible with the same liberties for all. The first principle indicates that the people should have equal access to the same basic civil resources. In essence, the access to civil liberties should not be contingent on anything except promoting equality in the society. In the same way, the second principle touches on the social and economic inequality factors. It states that activities should be arranged in a manner that they benefit the least advantages in the society and that they be attached to offices that uphold the highest levels of equality. The second principle tries to hold it that resources be distributed to people who require them the most. Essentially, building more hospitals in poverty areas ensures that the cost of healthcare is reduced by reduced demand. In the same way, the second principle holds it that political arrangements on administrations should focus more on the equality of service factor. Offering equal services in public offices ensures that the implications of inequality are reduced.
Proper distribution of resources requires an evaluation of the problems causing current economic distribution problems. The problems mentioned earlier can be solved separately by employing different strategies for each. Essentially, micro-economic problem are relatively easier to address that macro-economic ones. For this reason, a review of the micro economic solutions will be done first. The issue on monopoly could be mitigated by carefully regulating the production industry. Regulating competition will ensure that all the producers have equal opportunity to present their products and services to the market. In the same way, regulating competition ensures ethical practices in transaction as well as transparent transactions. In the same way, the externalities affecting the economy should be structured more in ways that enable the promotion of globalization. In this way, nations as well as citizens will be able to interact in a broader way and to ensure more enterprise. Deregulation activities will open more opportunities for poor people to travel for jobs and income while investing in their countries. The rise and falling of prices can only be regulated by ensuring lasting enterprise and equal opportunity for sellers. The volatile prices will stabilize because demand and supply will always be in equilibrium.
On the other hand, the distribution of money in the United States can also be addressed by mitigating unemployment. Rawls ideas can be borrowed by ensuring that wealth is put into use in order to increase employment opportunities. One major way to improve the lives of the poor is to ensure constant income. The only way to do this is to ensure that wealthy people increase the amount of enterprise they employ in their resources. Employing more resources will increase industry and lead to more income generation and money circulation. Apart from addressing unemployment, inflation can be mitigated by ensuring quality lives for citizens as described in the unemployment section. Ensuring that money circulated remains at equilibrium enables the money distributed I the economy to meet people’s needs according to their efforts.
References
Rawls. J. (1985). A theory of justice. Philosophy and Public Affairs. Vol 14(3), 223-252.
Nozick. R. (1974). Anarchy, state, and utopia. New York: Basic Books Publishers.
