Redistribution of income from the rich to the poor will lead to a reduction in total output.This is known as the

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The big tradeoff refers to the idea that redistributing income from the rich to the poor reduces incentives for the rich to work and invest, ultimately leading to a reduction in total output. This idea is based on the assumption that the rich are more productive and efficient in using their resources than the poor, and that when they are taxed to support the poor, their reduced incentives lead to a reduction in overall economic activity. Therefore, a Robin Hood-style redistribution policy may come at a cost of a lower GDP.

Redistribution of Income from the Rich to the Poor Will