Redistribution Of Income Definition Economics

Redistributive policies are made by means of public expenditures for programs directed toward the poor as well as economic regulation.

Redistribution of income definition economics. Most often it refers to progressive redistribution from the rich to the poor although it may also refer to regressive redistribution from the poor to the rich. Rather incomes are determined in the marketplace by millions of people providing and purchasing services through voluntary exchanges and government transfers necessarily limit these exchanges. In economics redistribution is the transfer of income wealth or property from some individuals to others. A country s means of redistributing wealth comes from the implementation of a carefully thought out well described system of taxation.

The co existence of a high degree of inequality within a democratic political regime leads to the adoption of public policy directed toward the redistribution of income and poverty reduction. These transfers are commonly referred to as government redistribution programs presumably from the wealthy to the poor. The implementation of such a system would aid in achieving the desired social and economic objective of diminishing social inequality and maximizing social welfare. Economists or governments adopt economic policies and strategies like progressive taxation to implement this phenomenon.

Home cee 1st edition redistribution of income an updated version of this article can be found at redistribution of income in the 2nd edition s ince the great depression most americans have agreed that a principal responsibility of government is to redistribute income from the well to do to the impoverished and. That explains the quotation marks around the term redistribution. Even while successful in reducing. The unstated implication is that income was originally distributed by someone.

Income redistribution is an economic practice which is aimed at leveling the distribution of wealth or income in a society through a direct or indirect transfer of income from the rich to the poor.