When the government redistributes income from the rich to the poor, society benefits since there are more poor than rich.

Question

Quizplus · Accepted Answer

The statement oversimplifies complex economic and social dynamics. While redistribution can help alleviate poverty and reduce income inequality, its overall benefit to society depends on factors like the efficiency of the redistribution process, the impact on economic incentives, and how the funds are utilized. Redistribution does not automatically result in a net benefit for society simply because there are more poor people than rich.

When the Government Redistributes Income from the Rich to the Poor