income redistribution

economics

Also known as: redistribution of income

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June 29, 2026

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Income redistribution in economics refers to the practice of governments attempting to shift income from wealthier individuals or groups to poorer ones. This can be done through various means, such as progressive taxation, where higher earners pay a larger percentage of their income in taxes, and social welfare programs that provide benefits to those in need.12

Arguments for redistribution include the idea that it can more efficiently alleviate severe hardship and suffering than market economies alone, which can leave individuals without sufficient resources. Additionally, some economists argue that redistributing income can increase overall social welfare, as an extra dollar has a greater impact on the standard of living for someone with a lower income. This practice is a significant aspect of social stratification and impacts various forms of inequality, including wealth, political power, and social status.13

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George Bernard Shaw on socialism
…into public property, and the division of the resultant public income equally and indiscriminately among the entire population. Thus it reverses the policy of Capitalism, which means establishing private or “real” property to the utmost physically possible extent, and then leaving distribution of income to take care of itself. The…
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…into public property, and the division of the resultant public income equally and indiscriminately among the entire population. Thus it reverses the policy of Capitalism, which means establishing private or “real” property to the utmost physically possible extent, and then leaving distribution of income to take care of itself. The…
Read More

government economic policy
Arguments for income redistribution
Although governments do affect the distribution of resources in numerous ways, this is often a by-product of the other things they are trying to do. It has been long debated whether or not governments should seek explicitly to redistribute income from the rich…
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Although governments do affect the distribution of resources in numerous ways, this is often a by-product of the other things they are trying to do. It has been long debated whether or not governments should seek explicitly to redistribute income from the rich…
Read More