I am feeling that I posted really something offensive. But I just reposted a meme from Reddit that had 12k upvotes. I know I shouldn’t have done that. I don't know if I break any rules or not. If I really break any rules then Mod remove this post.
this post was submitted on 26 May 2024
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Ah, the classic Ultimatum Game. Economists would say that any amount of money should be acceptable for getting punched in the face, because its better than getting decked for nothing. The vast vast majority of people feel cheated if it isn't a 50/50 split. This is what passes for a "paradox" to economists, who could probably all do with being punched in the face more often.
As an economist, I agree.
The problem is that the cost doesn't match the reward. I'd be totally fine with a 90/10 split for just a punch in the face. I'll be over the injury in a week with a lot more than I started with. Raise the cost to losing an arm or leg for a cut, then even 50/50 seems a bit low as the victim's life has changed but the other's hasn't.
I do agree with punching economists in the face more, just in principle.
This is why wealth inequality is even more unethical under capitalism than it was under feudalism.