Do you think we should have perfect income distribution in this country and why

Question

Do you think we should have perfect income distribution in this country andwhy do you feel the way you do? Currently, income gets re-distributed through income taxes, sales taxes, estate taxes, and things like that. If you don't think we should have "perfect" income distribution; do you think we should re-distribute income more than we do today. I really want your opinion here.  Your essay answer should be well thought-out in easy to read paragraphs and be about a page in length. You need to relate your answer to the chapter material.

To answer this problem intelligently, you will need a good understanding of pages 323-327. Relate your answer to what you have read in the chapter.

Explanation / Answer

Redistribution of income/ wealth from a person to another is caused by certain social systems like nationalization, taxes/charity/ tort legislation.

A positive effect of redistribution is that it fosters fairness. Fairness in the aspect of wealth doesn’t always prevail, especially in the US. Redistribution of income enables residents to feel that some degree of fairness has been established. Also, it is for betterment of both the poor populace and the rich populace. When the gap between the rich & the poor is too wide, economic inefficiencies happen.

But, there are some cons to redistribution. It works against US’s economic set up of free capitalism. State interference for redistribution oppose the basic values of capitalism. Additionally, it may hamper a society's growth opportunities. Redistribution may imply that the rich can’t start a new business venture/ recruit new personnel, & this may end up being a set back for the economy.

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