Redistribution of income and wealth

Redistribution of income and wealth is the transfer of income and wealth (including physical property) from some individuals to others through a social mechanism such as taxation, welfare, public services, land reform, monetary policies, confiscation, divorce or tort law. The term typically refers to redistribution on an economy-wide basis rather than between selected individuals. Interpretations of the phrase vary, depending on personal perspectives, political ideologies and the selective use of statistics. It is frequently used in politics, to refer to perceived redistribution from those who have more to those who have less. Occasionally, however, the term is used to describe laws or policies that cause redistribution in the opposite direction, from the poor to the rich. The phrase is often coupled with the term class warfare, with high-income earners and the wealthy portrayed as victims of unfairness and discrimination. Redistribution tax policy should not be confused with predistribution policies. "Predistribution" is the idea that the state should try to prevent inequalities from occurring in the first place rather than through the tax and benefits system once they have occurred. For example, a government predistribution policy might require employers to pay all employees a living wage and not just a minimum wage, as a "bottom-up" response to widespread income inequalities or high poverty rates. Many alternate taxation proposals have been floated without the political will to alter the status quo. One example is the proposed "Buffett Rule", which is a hybrid taxation model composed of opposing systems intended to minimize the favoritism of special interests in tax design. The effects of a redistributive system are actively debated on ethical and economic grounds. The subject includes an analysis of its rationales, objectives, means, and policy effectiveness. In ancient times, redistribution operated as a palace economy.

About this result

This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.

Related concepts (53)

Related courses (3)

Related lectures (57)

Distributive justice

Distributive justice concerns the socially just allocation of resources, goods, opportunity in a society. It is concerned with how to allocate resources fairly among members of a society, taking into account factors such as wealth, income, and social status. Often contrasted with just process, which is concerned with the administration of law, distributive justice concentrates on outcomes. This subject has been given considerable attention in philosophy and the social sciences.

Redistribution of income and wealth

Market socialism

Market socialism is a type of economic system involving social ownership of the means of production within the framework of a market economy. Various models for such a system exist, usually involving some mix of public, cooperative, and privately owned enterprises. The central idea is that, as in capitalism, businesses compete for profits, however they will be "owned, or at least governed," by those who work in them. Market socialism differs from non-market socialism in that the market mechanism is utilized for the allocation of capital goods and the means of production.

HUM-471: Economic growth and sustainability I

This course examines growth from various angles: economic growth, growth in the use of resources, need for growth, limits to growth, sustainable growth, and, if time permits, population growth and gro

ENV-610: Ecological economics

This course is an introduction to economic theory applied to environmental issues. It presents the methods used to assess environmental impacts and natural resources as well as environmental regulatio

FIN-609: Asset Pricing (2011 - 2024)

This course provides an overview of the theory of asset pricing and portfolio choice theory following historical developments in the field and putting emphasis on theoretical models that help our unde

Social and Political Ethics HUM-207(a): Social and political ethics B

Explores power dynamics, social ethics, and political structures, questioning the concept of meritocracy and advocating for equitable resource distribution.

Limitations of GDP HUM-471: Economic growth and sustainability I

Delves into the limitations of GDP as a measure of economic growth, emphasizing the need for caution in its interpretation.

Economic Growth in Wealthy Countries HUM-471: Economic growth and sustainability I

Explores the need for economic growth in high-income countries and its impact on public budgets, debt, employment, income distribution, and poverty rates.