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WELFARE IMPLICATIONS OF ‘SOCIAL INCOME’ IN A CHANGING ECONOMY
Author(s) -
McELROY MICHAEL B.
Publication year - 1978
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1978.tb00283.x
Subject(s) - economics , contradiction , welfare , space (punctuation) , social welfare , basic income , capital (architecture) , neoclassical economics , microeconomics , public economics , market economy , law , philosophy , linguistics , archaeology , epistemology , political science , history
Samuelson (1961) concluded that in a dynamic setting any scalar concept of current economic activity is inherently myopic with respect to the relevant welfare‐space. This conclusion, which virtually undermines any welfare foundations for the concept of income, is shown to be based on an incomplete and inconsistent concept of capital formation. When this is amended, the alleged welfare contradiction in the concept of income vanishes .