Equity vs. Efficiency

Equity and efficiency are two principles used to evaluate policies or systems. Equity refers to fairness and justice in how resources, opportunities, or burdens are distributed among people, aiming for fairness regardless of people's background or circumstances. Efficiency, on the other hand, focuses on maximizing outputs or benefits with the least amount of resources or effort, ensuring that resources are used optimality. Sometimes, policies that promote equity may reduce efficiency, and vice versa, as balancing fair distribution with maximizing overall benefits is a central challenge in decision-making.