Essay Topic:
Many government programs both redistribute income and correct a market failure. Choose a
government program such as, Student Loan Programs, Public Elementary Education, Public
Support for Universities, or Social Security, and write an argumentative essay that explains:
1. The market failures associated with your chosen program
2. The redistribution of the program: To whom is it for? From whom is it taking? For what
perceived social benefit?
3. The most optimal way for this program to be run considering both the distributional
objectives and efficiency aspects
Goals of this Essay:
● Demonstrate understanding of market failures
○ Show how government programs aim to fix market failures, but almost always
contribute to or generate another market failure
● Critically analyze distributional objectives of a given program
○ Do you understand how the program runs and why?
● Identify the difference(s) between distributional and efficiency aspects
● Think outside the box, and argue how the specified market failure(s) could be minimized
more effectively