On the Ethics of Redistribution

Varadarajan Chari and Christopher Phelan

No 15-6, Economic Policy Paper from Federal Reserve Bank of Minneapolis

Abstract: Analysts of optimal policy often advocate for redistributive policies within developed economies using a behind-the-veil-of-ignorance criterion. Such analyses almost invariably ignore the effects of these policies on the well-being of people in poor countries. We argue that this approach is fundamentally misguided because it violates the criterion itself.

Pages: 5 pages
Date: 2015-07-29
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