DEMOCRACY AND REDUCTION OF ECONOMIC INEQUALITY MAY NOT GO TOGETHER.' DISCUSS CITING SUITABLE EXAMPLES.
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Answer:
find that democracy has a significant and robust effect on redistribution, but it fails to reduce inequality. ... Thus, the benefits of any redistributive policy accrue more to the middle class than the poor, and as a result, income inequality may not decline as expected (see also Stigler 1970).Examples of Income Inequality
The poorest 10% of Americans went from having zero assets to being $1,000 in debt.
Families in the middle-income segment more than doubled their prior average wealth.
Families in the top 10% had more than five times their prior wealth.
Answer:
(2013) find that democracy has a significant and robust effect on redistribution, but it fails to reduce inequality. ... Thus, the benefits of any redistributive policy accrue more to the middle class than the poor, and as a result, income inequality may not decline as expected (see also Stigler 1970).