This paper adapts the Rawlsian idea of decision making behind the veil of i
gnorance in the realm of income transfer systems. Bs rational decision make
rs tee would plan a society where the incidence of poverty is low differenc
es in the level of living between life cycles are small, income differences
between the rich and poor are modest, income mobility from poverty to non-
poverty is high, and where the living standard of the poor is decent. The r
esults show that income mobility is not greater in those countries which ha
ve wide income differences, nor is the situation of the poor any better in
countries with huge income disparities than in other countries. Cross-natio
nal comparisons indicate that high poverty rates are not associated with mo
re rapid income mobility and higher standards for the poor.