What Do Economists Mean by "The Declining Marginal Utility of Money

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The Answer is The concept of the declining marginal utility of money refers to the idea that as a person's wealth increases, each additional unit of money they receive provides less and less additional satisfaction or utility. In other words, the more money a person has, the less each additional dollar is worth to them in terms of increasing their overall well-being or happiness.

Economist Amartya Sen and philosopher Martha Nussbaum have used this concept to argue for greater economic equality. They argue that because the marginal utility of money declines as wealth increases, redistributing wealth from the rich to the poor can lead to a more equitable distribution of overall well-being. This is because the same amount of money can provide much greater utility to someone who is poor than to someone who is already wealthy.

Philosopher Harry Brighouse and economist Ingrid Robeyns have also used the concept of declining marginal utility of money to argue for greater economic equality. They suggest that a more equal distribution of wealth can lead to a more just society, as it can help to ensure that everyone has the resources they need to live a decent life.

In summary, the concept of the declining marginal utility of money is used by economists and philosophers to argue for greater economic equality by highlighting the diminishing returns of wealth and the potential for redistributing resources to improve overall well-being and justice in society.

What Do Economists Mean by "The Declining Marginal Utility of Money

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