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Albert Boucher's avatar

I liked the logic of this article. Some groups are beneficial to the individual like religious groups or sport clubs, as few examples, because they encourage individual action that in turn benefits society. A society of individuals working together. Not a society that of anarchy and nihilism.

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Daniel Melgar's avatar

Great post!

The tension between individualism and collectivism is due to Pareto efficiency.

Individualism challenges Pareto efficiency primarily because the latter, when derived from purely individualistic assumptions, is silent on the initial distribution of wealth and does not account for social welfare beyond individual self-interest. This can lead to highly unequal, yet technically "efficient," outcomes that many would consider unjust.

An allocation of resources is Pareto efficient if it is impossible to make any one person better off without making at least one other person worse off.

How Individualism Creates Challenges:

Individualism and the Pareto criterion take the initial distribution of resources as a given. A society where one person has all the resources and everyone else has nothing can be Pareto efficient, because giving anything to another person would make the first person "worse off" (by one unit of resource). This outcome is efficient but highly inequitable.

Because any redistribution that makes a loser worse off is not a Pareto improvement, strict adherence to the Pareto criterion (under individualistic premises) prevents policies aimed at social justice or helping the disadvantaged, even if the overall social welfare (using other metrics) would increase.

In short, collectivism distills down to what the Bible calls coveting or what we atheists call yearning to possess something that belongs to someone else. Such people—collectivists—envy the talents of individuals so much that no matter how much their lives are improved by a Steve Jobs or a Sam Walton it will never be good enough unless the most talented among us are forced to lose their resources in the exchange. The collectivization of individuals has only one inevitable outcome—equal poverty.

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