There are three equally-sized distinct subpopulations in Utopolis: unemployed, w

Question

There are three equally-sized distinct subpopulations in Utopolis: unemployed, workers, and retirees. There are four possible social states which result in different utility levels for the three subpopulations:

Q1: Which social states might plausibly be chosen by the government of Utopolis? and Why?

Q2: There is a government election in Utopolis with two candidates: a Rawlsian and a Utilitarian candidate. Each candidate promises to enact one of the social states above.

If the majority of citizens elect the candidate, which social state will be enacted?

Explanation / Answer

Q1. The best state to choose from is state A, because It has the highest number of workers above all other states, and it has the second less unemployment population. Overall, this state will produce the highest utility for the population because the majority of the people is employed, and it means that the income is high.

Q2. First, we need to understand that a Rawlsian candidate will try to protect the less advantaged members of society, that is, he will look for a system where the unemployed and elder will be favoured to obtain votes; on the other hand, the utilitarian candidate will search for the biggest social utility possible. Therefore, if the former candidate wins he will choose a system where the unemployed and elder will be enough to be subject of government help, in this case the state B; and the later candidate will choose state D where the number of workers is the maximum, because the maximum social utility comes from the work.

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