Ethics at Hochschule Pforzheim | Flashcards & Summaries

Lernmaterialien für Ethics an der Hochschule Pforzheim

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Main critique Gini

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Gini index is very sensitive what is going on in the middle. We should concentrate on the 10% share in comparison to the bottom 40%. Gini coefficient is just a number and does not talk about different income groups. So the main difference is that the Palma ratio takes into account changes to the distribution of income if it either affects the lowest earners or the highest earners and therefore relates better to the common understanding of inequality. 

Therefore, the Palma-Ratio gives a deeper and clearer look to answer the question of the inequality of income distribution between the rich and the poor.  This is also the reason why more and more economists tend to focus more on Palma than Gini.

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GINI allgemein

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The Gini coefficient is, at least until now, the most common way of showing the distribution between rich and poor. The coefficient calculated for each country is a number between 0 (fully equal distributed) and 1 (no equal distribution at all). For that reason, it is easy for individuals to understand and compare inequality in the world. There is only problem about it, the coefficient only shows the average distribution after all and not the comparison within the different income or wealth levels of a country. Which means that it is not possible to take away any comparison on how strong the inequality within the very poor and very rich are. Due to its method of calculation the index is more sensitive to changes within the middle sector

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Edonic
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Right here right now
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Utilitarianism
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System of morality rather than as a system of social or political decision 
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Palma calculation

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TESTE DEIN WISSEN

. In his calculations he came up with a model that compares only the richest 10% with the poorest 40% looking at their gross national income. He is then putting both numbers in relation to get the Palma-Ratio. If for the example the Palma-Ratio is 5, it means that the top 10% get 5 times more income that the bottom 40%.

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Aristotle friendship 
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  • Utility 
  • Pleasure
  • Mutual appreciation for each other values
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Amartya Sen: means and ends

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Was the guy who created the Human Development Index. Core of the message: Economics is not the end of everything, resources have to be translated/converted. Resources aren’t a perfect indicator of richness. Economic growth is just a means to achieve a good quality of life. For a good life you need to be able to transform resources into sth.

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Piketty particular statement

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The Inequality is neither economic nor technological; it is ideological and political

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Piketty proposals

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- higly progressive taxation (of wealth, inheritance, income)

- power-sharing in corporations through co-management

- basic income for all 

- global economic justice

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Psycological Factors that influence aporophobia?

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TESTE DEIN WISSEN

Impressions, interpretations, imaginations influence their beliefes and so in their actions and attitutes

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Palma allgemein

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TESTE DEIN WISSEN

Palma tries to solve exactly this misunderstanding by changing the way of approaching the calculation. In his calculations he came up with a model that compares only the richest 10% with the poorest 40% looking at their gross national income

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Piketty 6 types of inequality

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  1. ‘trifunctional’ societies, comprising nobility, clergy and the rest (predominantly, labourers)
  2. ownership societies, where power and wealth depended on legal title; 
  3. slave and colonial societies; 
  4. social democratic societies; 
  5. communist societies; 
  6. the latest phase of ‘hypercapitalism’ (with soaring inequality, notably in the Middle East, Russia and China).
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Q:

Main critique Gini

A:

Gini index is very sensitive what is going on in the middle. We should concentrate on the 10% share in comparison to the bottom 40%. Gini coefficient is just a number and does not talk about different income groups. So the main difference is that the Palma ratio takes into account changes to the distribution of income if it either affects the lowest earners or the highest earners and therefore relates better to the common understanding of inequality. 

Therefore, the Palma-Ratio gives a deeper and clearer look to answer the question of the inequality of income distribution between the rich and the poor.  This is also the reason why more and more economists tend to focus more on Palma than Gini.

Q:

GINI allgemein

A:

The Gini coefficient is, at least until now, the most common way of showing the distribution between rich and poor. The coefficient calculated for each country is a number between 0 (fully equal distributed) and 1 (no equal distribution at all). For that reason, it is easy for individuals to understand and compare inequality in the world. There is only problem about it, the coefficient only shows the average distribution after all and not the comparison within the different income or wealth levels of a country. Which means that it is not possible to take away any comparison on how strong the inequality within the very poor and very rich are. Due to its method of calculation the index is more sensitive to changes within the middle sector

Q:
Edonic
A:
Right here right now
Q:
Utilitarianism
A:
System of morality rather than as a system of social or political decision 
Q:

Palma calculation

A:

. In his calculations he came up with a model that compares only the richest 10% with the poorest 40% looking at their gross national income. He is then putting both numbers in relation to get the Palma-Ratio. If for the example the Palma-Ratio is 5, it means that the top 10% get 5 times more income that the bottom 40%.

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Q:
Aristotle friendship 
A:
  • Utility 
  • Pleasure
  • Mutual appreciation for each other values
Q:

Amartya Sen: means and ends

A:

Was the guy who created the Human Development Index. Core of the message: Economics is not the end of everything, resources have to be translated/converted. Resources aren’t a perfect indicator of richness. Economic growth is just a means to achieve a good quality of life. For a good life you need to be able to transform resources into sth.

Q:

Piketty particular statement

A:

The Inequality is neither economic nor technological; it is ideological and political

Q:

Piketty proposals

A:

- higly progressive taxation (of wealth, inheritance, income)

- power-sharing in corporations through co-management

- basic income for all 

- global economic justice

Q:

Psycological Factors that influence aporophobia?

A:

Impressions, interpretations, imaginations influence their beliefes and so in their actions and attitutes

Q:

Palma allgemein

A:

Palma tries to solve exactly this misunderstanding by changing the way of approaching the calculation. In his calculations he came up with a model that compares only the richest 10% with the poorest 40% looking at their gross national income

Q:

Piketty 6 types of inequality

A:
  1. ‘trifunctional’ societies, comprising nobility, clergy and the rest (predominantly, labourers)
  2. ownership societies, where power and wealth depended on legal title; 
  3. slave and colonial societies; 
  4. social democratic societies; 
  5. communist societies; 
  6. the latest phase of ‘hypercapitalism’ (with soaring inequality, notably in the Middle East, Russia and China).
Ethics

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