This paper, authored by Robert M. Solow and published in February 1973, explores the implications of the max-min principle on intergenerational equity in the context of optimal economic growth. The max-min principle, advocated by John Rawls, suggests that inequality in wealth or utility distribution is justified only if it improves the position of the poorest individuals. Solow examines how this principle affects various economic scenarios, including constant population, constant technology, and exponential population growth, as well as the presence of technical progress and exhaustible resources. Key findings include: 1. **Constant Population and Technology**: The max-min principle leads to zero net saving with stationary technology and negative net saving with advancing technology, which Solow finds unsatisfactory. 2. **Exponential Population Growth**: In this scenario, the max-min principle calls for capital accumulation to match population growth, but this can lead to a decline in living standards if the initial capital stock is too small. 3. **Exhaustible Resources**: The introduction of exhaustible resources complicates the analysis. Solow finds that the max-min principle still applies, but with adjustments to account for resource depletion. The optimal path involves early capital accumulation and resource use to maintain a decent standard of living. 4. **Technical Progress**: Unlimited technical progress can lead to higher consumption levels, but the max-min principle may still require a constant level of consumption, which seems conservative. Solow concludes that the max-min principle is a reasonable criterion for intertemporal planning, but it faces significant challenges, particularly in ensuring a decent initial capital stock and in handling stationary populations with unlimited technical progress. The presence of exhaustible resources introduces interesting dynamics, but the basic principles remain largely unchanged.This paper, authored by Robert M. Solow and published in February 1973, explores the implications of the max-min principle on intergenerational equity in the context of optimal economic growth. The max-min principle, advocated by John Rawls, suggests that inequality in wealth or utility distribution is justified only if it improves the position of the poorest individuals. Solow examines how this principle affects various economic scenarios, including constant population, constant technology, and exponential population growth, as well as the presence of technical progress and exhaustible resources. Key findings include: 1. **Constant Population and Technology**: The max-min principle leads to zero net saving with stationary technology and negative net saving with advancing technology, which Solow finds unsatisfactory. 2. **Exponential Population Growth**: In this scenario, the max-min principle calls for capital accumulation to match population growth, but this can lead to a decline in living standards if the initial capital stock is too small. 3. **Exhaustible Resources**: The introduction of exhaustible resources complicates the analysis. Solow finds that the max-min principle still applies, but with adjustments to account for resource depletion. The optimal path involves early capital accumulation and resource use to maintain a decent standard of living. 4. **Technical Progress**: Unlimited technical progress can lead to higher consumption levels, but the max-min principle may still require a constant level of consumption, which seems conservative. Solow concludes that the max-min principle is a reasonable criterion for intertemporal planning, but it faces significant challenges, particularly in ensuring a decent initial capital stock and in handling stationary populations with unlimited technical progress. The presence of exhaustible resources introduces interesting dynamics, but the basic principles remain largely unchanged.