The marginal productivity theory of income distribution proposes spending on res
ID: 1106189 • Letter: T
Question
The marginal productivity theory of income distribution proposes spending on resources for production should be based on each resource's marginal contribution to output. In other words, more productive resources will be paid more (better workers have higher salaries). Discuss the ethical implications of this. Feel free to use the following questions to guide your responses.
Should non-productive people be paid very little? Or should they be paid more in order for them to achieve a certain quality of life?
Should highly productive people earn the vast majority of society's wealth and income?
Should resources be passed on via inheritance, despite the fact that they may be going to a non-productive person/use?
Explanation / Answer
Ethical implications of this theory:
Payment according to the productivity means the workers who are more qualified and who are producing more are to be paid more than the workers who are less qualified and who are not able to adopt the new technology.Payingi them less would reduce their morale and they will not work as ecpected. They should be paid reasonable wages for their work. But people who have performed well and who are more productive are to be paid a handsome amount because they have put lots of efforts to perform their job. If they are paid less they would loose their morale and won't give their best outputs. So, payment according to the productity is a good idea. The non-productive people should be paid reasonably so that they can achieve certain quality of life.
The highly productive people should not earn the vast majority of society's wealth and income because this would create problems in the distribution of income. Income distribution if cannot be equal, it should be atleast reasonable i.e., it should not happen that a group of people is getting the major portion of the wealth and the rest are jut given nuts.
Resources should not be passed via inheritance if the person getting it is non-productive. Because he won't be able to do justice with the resource. Resources should be passed on to the derirving and productive person only.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.