degree of inequality. Conversely, if society wants a high level of equality, like point B, it must accept a lower

level of economic output because of reduced incentives for production.

This view of the tradeoff between economic output and equality may be too pessimistic, and Figure 15.10 (b)

presents an alternate vision. Here, the tradeoff between economic output and equality first slopes up, in the

vicinity of choice C, suggesting that certain programs might increase both output and economic equality. For

example, the policy of providing free public education has an element of redistribution, since the value of the

public schooling received by children of low-income families is clearly higher than what low-income families

pay in taxes. A well-educated population, however, is also an enormously powerful factor in providing the

skilled workers of tomorrow and helping the economy to grow and expand. In this case, equality and economic

growth may complement each other.
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