Enroll Course: https://www.coursera.org/learn/economic-growth-part-2
The second installment of the “Economic Growth and Distributive Justice” series on Coursera, titled “Maximize Social Wellbeing,” is an absolute must for anyone grappling with the complex economic and societal challenges of the 21st century. If questions of income and wealth inequality, and their intricate relationship with economic growth, keep you up at night, then this course is tailor-made for you. It promises to fundamentally reshape your understanding of the world.
This course builds upon the foundational knowledge of the first part, shifting the focus from equity measures to the crucial concept of efficiency. We delve into the principles of social efficiency, exploring the logic of trade, profitable transactions, and the pervasive influence of taxation. Through relatable, everyday examples, the course demystifies the concept of “excess burden” – explaining why and how taxes can diminish social efficiency and providing methods for its measurement. A particularly insightful lecture tackles “Tax Incidence,” unraveling the often counter-intuitive ways market forces dictate who truly bears the economic burden of a tax, frequently diverging from legislative intent.
The lectures on “Progressivity” are equally illuminating. We explore the distinctions between marginal and effective tax rates and examine how progressivity can be achieved. The course also highlights how the transfer side of a system, such as welfare benefits, can introduce steep marginal tax rates alongside those generated by the tax system itself. This sets the stage for the introduction of the “Optimal Income Tax Model.” This theoretical framework is central to the course’s ultimate goal: identifying a tax and transfer system that maximizes social wellbeing.
The final lectures are dedicated to a comprehensive exploration of this “Optimal Income Tax Model.” By synthesizing all the concepts previously taught, the course presents a compelling argument for the most effective model a government can employ to achieve both economic growth and distributive justice. It’s an invitation to not only absorb this knowledge but also to critically engage with it, fostering your own informed perspectives and perhaps even sparking new ideas. This course is more than just an academic exercise; it’s a powerful tool for understanding and potentially improving the socio-economic realities we inhabit.
Enroll Course: https://www.coursera.org/learn/economic-growth-part-2