The Application of Common Prosperity Policy; Discussion Based on Limitarianism

Abstract

This paper explores the concept of Economic Limitarianism, which proposes that social progress can be achieved by imposing restrictions on individual wealth accumulation. It analyzes the policy of "common prosperity" in the context of China as a potential application of Limitarianism to address wealth inequality. The paper examines the historical parallels between Economic Limitarianism and ancient tithing practices, highlighting the belief that the super-rich should allocate surplus funds to address societal needs. However, recent literature suggests limitations in implementing Limitarianism due to the lack of clear criteria for judgment and varying acceptance of inequality across different social states. The "common prosperity" policy in China, which involves providing state dividends from surplus operating income to support the less well-off, is compared to traditional Limitarianism. It is argued that the "common prosperity" policy, with its focus on state-owned enterprises and redistribution rather than wealth restrictions, can mitigate wealth inequality while minimizing violations of property rights and social dissatisfaction. The paper concludes that blindly applying the "common prosperity" policy in countries like the United States may not be advisable due to different national conditions. However, two potential approaches for promoting Limitarianism in capitalist countries are suggested: increasing the number of state-owned enterprises and increasing government revenues through investments in private enterprises. While acknowledging the significance of the "common prosperity" policy for the development of Limitarianism, its applicability outside of China is considered limited.