Income distribution, social cohesion and sustainable development : the economy of communion model

Abstract

Income Distribution is not attributed a distinct role that reflects the social consciousness of the owners of factor inputs in economic models of production. Economic theory distinguishes between the income accruing to factors of production and income accruing to persons. It links the two through the redistributive mechanism of the government's budget. This 'gap' in economic analysis is addressed by the Economy of Communion model of social interaction. The model is based on the idea of shared growth: all involved in the production and consumption of a commodity are expected to benefit from the growth of the commodity. This paper argues that the Communion model relates to the personal freedoms sought by liberal thinkers and tallies with the core ideas of sustainable economic growth. The realisation of the model's vision can co-exist with a capitalist system of production even though the model extends wealth creation beyond the pure self interest of capitalists and workers.