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What is Macro Allocation?

Updated: 4/28/2022
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Macro allocation is how we decide where we spend our money on a large scale. There are generally two ideas when it comes to macro resource allocation. There is the strict egalitarian view and the utilitarian view. The strict egalitarian view is simply that everyone has a right to equality. This means that some people may need more money spent on health care than others to ensure that equality can be met. This may mean that a person with a disease will need to spend more time in the hospital than someone who has remained healthy for his or her entire life. Thus, more government and insurance money would be spent on the person who needs the assistance so that person can reach a state of health in which he is equal to the person who does not need any expensive health care. The utilitarian view is the idea that we should supply the greatest amount of happiness to the greatest amount of people. In this situation, each person would be allotted the same amount of money to spend on his health care throughout his entire life.

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Related questions

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