· Alternatively gs
0. In particular, the average income group could be a victim of a coalition of the poor and the rich, the first getting a high B and the second a large gs. [85] In a democracy with voting population LS, a majority of LS/2 + 1 indeed can levy high taxes on the other LS/2 -1. In that case it would not be fair to regard the tax on the average wage as beneficial to the common good. (Note that this analysis for gs
0 is weak, since not all possible redistributive schemes are considered.)
Price indices for the average and subsistence workers are P and Pb. Real positions thus are W / P and B / Pb. Government prices are Pgn, Pgp and Pgs, giving gnr and gpr and gsr. Similarly Pq and qr.
The difference in leisure and sweat will be compensated here by choosing a suitable Real Income Ratio RIR.
All together, we have:
· Net position of the average worker Net[W] + gn + gp + q