Which outcome do government programs that take money from high-income people to give it to low-income people typically achieve

Question

Quizplus · Accepted Answer

Government programs that take money from high-income people to give it to low-income people typically create disincentives for the high-income earners to work and invest, reducing economic efficiency. This is because these programs reduce the reward for their efforts and investments – why work harder and earn more money if the government is going to take a bigger share of it? In general, such programs are seen as a trade-off between equity and economic efficiency, and the outcome depends on how the benefits and costs of the program are distributed.

Which Outcome Do Government Programs That Take Money from High-Income