Comment by opo
8 hours ago
Marginal utility tends to diminish as you consume more of a good, but you can't compare utility between individuals. Utility is ordinal, has no common scale and is subjective. It doesn't make sense to try and claim that redistribution will always maximize the total wellbeing of society.
I agree: there is no precise, objective way to compare the utility of two arbitrary wealth distributions, and redistribution does not always maximize the total well-being of society.
Yet I assert it's useful to ask if the status quo—one person has >$1T and many others don't have enough for basic needs like shelter, medicine, and food—is optimal or if it'd be better to redistribute some of this.
* We don't need the ability to quantify or rank all wealth distributions, just compare some of immediate relevance. That's much easier, in the same way that even though the halting problem is undecidable, we can prove some realistic program A will halt and some realistic program B may not.
* We don't need objectivity. Democracies decide many subjective things by majority vote (sometimes 2/3rds or whatever), directly or through representatives. I don't always agree with the outcome, but it's the system we have here in the US/California, and I assert it's better than a dictatorship or requiring 100% consensus to take any action.