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Distribution of Income

This document discusses the redistribution of income through government intervention. It notes the advantages and disadvantages of having no redistribution versus some redistribution of wealth. The cons of income inequality include large gaps between rich and poor which can skew politics in favor of donors and lobbyists. However, income inequality also has pros like incentivizing innovation. The document expresses a preference for a mixed economy with free enterprise and some redistribution of wealth through social programs like in the United States.

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Chris weber
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128 views6 pages

Distribution of Income

This document discusses the redistribution of income through government intervention. It notes the advantages and disadvantages of having no redistribution versus some redistribution of wealth. The cons of income inequality include large gaps between rich and poor which can skew politics in favor of donors and lobbyists. However, income inequality also has pros like incentivizing innovation. The document expresses a preference for a mixed economy with free enterprise and some redistribution of wealth through social programs like in the United States.

Uploaded by

Chris weber
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Distribution of Income

By:Chris Weber
Question 9
-Two economies:one where there is no redistribution of income by government
and one where there is

-Advantages and disadvantages of each system

-My personal preference


Redistribution of Income
- Transfer of income and wealth(including physical property) from some individuals
to others

-Mechanisms:Taxation, Charity, Welfare, Public Services, Land Reform, Monetary


Policies

-Remember, money doesnt grow on trees!


Cons of Income Inequality
-Large gap between rich and poor, today in U.S. the top one tenth of a percent of
Americans own more wealth than the rest of the nation combined

-Great Depression:Wealthy owned of assets

-Monopolies, possible unfairness and lack of opportunity-loans, schooling

-Can skew politics- Donors, Lobbyists, Special Interests

-Class antagonism, possible discouragement


Pros of Income Inequality
- Incentive:the motivation to go out and work or produce

-Innovation:Inventing, producing, creating, providing- think ideas and inventions

-1970s, Britains top tox rate 83 percent, Keith Richards stated, Thats the same
as being told to leave the country.

-Economic growth, job creation, opportunity

-U.S. has more millionaires/billionaires than Japan/Germany combined

-Venezuela:worst growth, ninth worst unemployment, worst inflation


My Input
-Mixed economy, exists in U.S.

-Allows for free enterprise, within guidelines

-There is a redistribution of wealth through charity, multiple social programs

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