The practical limit of income redistribution is incentives that affect how much the wealthy earn.

Question

Quizplus · Accepted Answer

Income redistribution policies, such as taxation and social welfare programs, are designed to transfer wealth from the rich to the poor. However, if these policies become too extreme, they may reduce the incentives for the wealthy to work and invest, ultimately leading to a decrease in overall economic growth. Therefore, there is a practical limit to how much income can be effectively redistributed without negatively impacting the economy.

The Practical Limit of Income Redistribution Is Incentives That Affect