Economic Efficiency and Income Differentials
In recent years the relevance and achievements of economic theory have been severely criticised. Some aspects of this criticism certainly deserve great attention. It is said with some justification that economists waste energy on solving technical issues of little or no social importance and that it is the perfection of the increasingly sophisticated and refined tools of mathematical analysis, which takes a growing proportion of their time and energy. It is also true that economics turned its back on the major economic problems and contemporary social conflicts, escaping into the safety of an imaginary world of perfect competition, perfect central planning, etc. Economics does not take up the problems which are relevant and socially painful, but prefers those which promise technically interesting and formally elegant solutions.
KeywordsConsumer Good Economic Efficiency Wage Differential Equitable Distribution Social Equity
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