Economic Growth and Distributive Justice Part II - Maximize Social Wellbeing

Go to Course: https://www.coursera.org/learn/economic-growth-part-2

Introduction

### Course Review and Recommendation: Economic Growth and Distributive Justice Part II - Maximize Social Wellbeing **Course Overview:** As the world grapples with persistent inequalities and serious economic challenges, Coursera's "Economic Growth and Distributive Justice Part II - Maximize Social Wellbeing" offers a timely and essential exploration of how taxation and equity can shape societies. This course is the second part of a two-part series, building on foundational concepts explored in Part I, and invites participants to delve into complex and pressing questions surrounding economic growth, income inequality, and their correlation with social welfare. **Course Structure:** The course consists of five comprehensive lectures that sequentially build on each other, culminating in a strong understanding of what constitutes an optimal tax and transfer system. Here’s a concise breakdown of the key lectures: 1. **The Excess Burden of Tax**: This lecture takes a closer look at the tradeoff between efficiency and equity within taxation. Through relatable examples, such as babysitting, learners gain insights into how taxation can create excess burdens, distorting social efficiency. 2. **Tax Incidence: Who Bears the Economic Burden of a Tax?**: Here, the course shifts to exploring how marketplace dynamics determine the economic burden of taxes. This is particularly enlightening as it uncovers the often-counterintuitive nature of tax incidence, fostering a greater understanding of economic interactions. 3. **Progressivity: Definition and Ways to Achieve**: This lecture focuses on the significance of progressive taxation. It explains the nuances between marginal and effective tax rates, presenting effective strategies to achieve tax progressivity and its implications for welfare benefits. 4. **Low Income, Low Ability, and the Optimal Income Tax Model**: Continuing the theme of progressivity, this section emphasizes how income levels and economic abilities influence tax strategies, further discussing the optimal income tax model. 5. **Designing the Tax and Transfer System that Maximizes Social Wellbeing**: In the concluding lecture, learners will synthesize the various components explored throughout the course and evaluate the optimal model for a tax and transfer system that drives both economic growth and distributive justice. **What Makes This Course Stand Out:** - **Relevance**: With the increasing discourse on income inequality and social justice, the course addresses major issues affecting societies globally. - **Expert Instruction**: Led by Prof. Margalioth, an expert in economics, participants benefit from robust academic insights and practical applications. - **Interactive Learning**: The course's structure encourages discussion and critical analysis, allowing learners to develop and express their individual perspectives on complex economic matters. **Who Should Take This Course?** Whether you're a student of economics, a policymaker, or simply someone passionate about social justice and equity, this course caters to a diverse audience. It's especially beneficial for individuals looking to understand how economic theories translate into real-world policies that affect everyday lives. **Conclusion and Recommendation:** "Economic Growth and Distributive Justice Part II - Maximize Social Wellbeing" is a thoughtfully designed, intellectually stimulating course that combines crucial economic theories with practical applications. If you are eager to engage with the significant economic questions of our time and strive to understand the dynamics of welfare, taxation, and social justice, this course is a must. I wholeheartedly recommend enrolling in this course on Coursera. It promises not just to educate but to empower you with the tools necessary to make thoughtful contributions to discussions and policies that shape our societies. Don't miss out on the opportunity to expand your understanding of these critical issues!

Syllabus

The Excess Burden of Taxation

Dear students, The first half of the course is behind us, and there's one more half to go. We hope you are enjoying yourselves! In the previous class, we focused on the equity side of the equity-efficiency tradeoff, learning how to measure inequality and poverty. In this class, we will move on to talk about measuring efficiency. We will study the principles of SOCIAL EFFICIENCY, guided by the logic of trade, profitable transactions and the influence of TAXATION. Using everyday examples (have you ever babysitted?!), we will investigate the concept of EXCESS BURDEN, how and why taxes reduce social efficiency, and how this can be measured. So let's begin week 5! Best, Economic Growth and Distributive Justice team

Dear students, This week we will learn how market forces determine who bears the economic burden of a tax. We will follow various classic examples and see how this happens - often in an unintuitive manner, which may be contrary to the legislator’s intention. Best, Economic Growth and Distributive Justice team

Dear students, This week's lecture is all about progressivity. We will learn about the difference between MARGINAL and EFFECTIVE tax rates, how progressivity can be achieved, and how the transfer side of the system (e.g. welfare benefits) can create steep marginal tax rates, in addition to those generated by the tax side of the system. In the second part of the lesson we will begin studying the OPTIMAL INCOME TAX MODEL, in our search for the tax and transfer system that would maximize social wellbeing. Best, Economic Growth and Distributive Justice team

Dear students, This week's lecture will continue our discussion about progressivity. In this second part of the lesson we will begin studying the OPTIMAL INCOME TAX MODEL, in our search for the tax and transfer system that would maximize social wellbeing. Best, Economic Growth and Distributive Justice team

Dear students, Time goes by, as always, and here we are, in our last week of the course 'Economic Growth and Distributive Justice'. We hope that by now you have all acquired sufficient knowledge and understanding in the various issues taught by Prof. Margalioth, enabling you to better analyze the social-economic reality in which you live, and form your own educated views and preferences regarding these issues. The last week of the course will be devoted to the OPTIMAL MODEL OF THE TAX & TRANSFER SYSTEM. Combining all materials taught in the course and applying them together, Prof. Margalioth will present to you what he believes to be the best possible model, through which a government can achieve both Economic Growth and Distributive Justice. Will you agree to adopt it as well? Perhaps you have some other interesting ideas? We will be more than happy to discuss them. Thank you for taking our course. It was our pure delight to have you as our students! So let's begin week 8! Best, Economic Growth and Distributive Justice team