In the above question what do you think about distribution of income?
Answers
The distribution of income lies at the heart of an enduring issue in political economy—the extent to which government should redistribute income from those with more income to those with less.
Whether government should redistribute income is a normative question, and each person’s answer will depend on his or her values. But for many people, answering the normative question requires understanding the facts about the current income distribution. The term “income distribution” is a statistical concept. No one person is distributing income. Rather, the income distribution arises from people’s decisions about work, saving, and investment as they interact through markets and are affected by the tax system. The 1990s and early 2000s witnessed the establishment of a growing body of work, increasingly precise, describing how the income distribution has changed.