The Fabian argument that confiscation of rents would not lower social welfare overlooks the costs of resource misallocation.

Question

Quizplus · Accepted Answer

The Fabian argument assumes that the state would use the confiscated rents efficiently and effectively for the benefit of society, without acknowledging the possibility of resource misallocation and the negative impact it could have on social welfare.

The Fabian Argument That Confiscation of Rents Would Not Lower