Capitalism trends towards greatest total utility (in the economics sense)
That's arguably a bit misleading, since greater equality gives greater utility, for a fixed-size pie.
It's pretty well established that utility is approximately proportional to the log of monetary value. So in your example of what capitalism prefers, total utility would be significantly higher if the $1500 were distributed equally over the 11 people.
That's arguably a bit misleading, since greater equality gives greater utility, for a fixed-size pie.
It's pretty well established that utility is approximately proportional to the log of monetary value. So in your example of what capitalism prefers, total utility would be significantly higher if the $1500 were distributed equally over the 11 people.