Abstract
For this discussion paper, I would like to focus mostly on Feldstein's argument of tackling poverty instead of inequality and why this is a dangerous perspective. To begin with, Feldstein's argument concerning the Pareto principle refers to the economic concept of Pareto superiority, which assumes an allocation of resources that helps at least one person while keeping everyone else at least as well off as before. Pareto efficiency, on the other hand, assumes an allocation where no one can be made better off without making at least one person worse. Thus, Feldstein suggests that we live in a Pareto superior society, where we have not yet achieved maximum efficiency. In other words, we have not reached our full productive potential and thus the increase in wealth among the rich should be seen merely as an advance towards pareto efficiency carried out by the upper stratum of society.
