Question

1. Why, according to Adam Ferguson and John Millar, is inequality necessary? In what way does their argument anticipate the “free rider problem”?

(100 words response) Thank you!

Answer 1

According to Adam Ferguson and John Millar every individual is created equally, and each one has equal access to resources and opportunities in life. When individuals work hard and create assets for themselves which results in preservation of the surplus of assets that have been produced by the hard working individuals for themselves. This preservation of surplus resources or assets leads to inequality. This inequality is necessary because it leads to economy prosperity and the preservation of the resources. It also motivates others to work hard and create assets for themselves. " Free rider problem" is when claimants for resources are more, this leads to depletion of the resources as the resources had to divided among all the claimants. as those who haven't worked for the attainment of the resources also get their share. To preserve the resources it is necessary that the individuals must work hard for it. Thus, inequality is necessary and is good for the society.