When a society gets the most it can from its scarce resources When economic benefits are distributed uniformly across society All societies face a trade-off between equality and efficiency. If the United States government lowers the income taxes on the wealthiest Americans, while decreasing welfare payments to the poorest Americans, the result will likely be

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The thing which would happen if the United States government lowers the income taxes on the wealthiest Americans, while decreasing welfare payments to the poorest Americans is:

  • There will be an increase in efficiency and a decrease in equality in the United States.

Equality

This refers to the system where members of a society have equal access to the basic amenities of society where they are and nobody is neglected and there is the abolition of social class.

With this in mind, we can see that when there is a decrease in taxes for the wealthiest Americans and reduction in welfare for the poorest Americans, then this would lead to increase in efficiency and also a decrease in equality.

Read more about equality here:

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