What are the main economic theories on welfare?

What are the main economic theories on welfare?

The main economic theories on welfare include utilitarianism, Rawlsian theory, and the capability approach. Utilitarianism focuses on maximizing overall happiness, while Rawlsian theory emphasizes fairness and justice. The capability approach, developed by Amartya Sen, looks at individuals' abilities to achieve well-being.

Can you explain utilitarianism in more detail?

Sure! Utilitarianism is a moral philosophy that suggests actions are right if they promote the greatest happiness for the greatest number. In welfare economics, it implies that policies should aim to maximize overall utility, often measured in terms of wealth or resources.

What are the criticisms of utilitarianism?

Critics argue that utilitarianism can justify harmful actions if they benefit the majority, overlook individual rights, and struggle to measure happiness accurately. Additionally, it may lead to neglecting minority interests.

How does Rawlsian theory differ from utilitarianism?

Rawlsian theory differs by prioritizing justice and fairness over overall happiness. It advocates for the 'difference principle,' which allows inequalities only if they benefit the least advantaged members of society, contrasting with utilitarianism's focus on aggregate welfare.