What are the effects of a government policy of redistributing income

Question

Quizplus · Accepted Answer

Redistributing income through government policies, such as progressive taxation or social welfare programs, can result in a more equitable distribution of income. However, it may also lead to less efficient allocation of resources as it can create disincentives for people to work or invest. This can lead to a reduction in overall economic growth and productivity. Therefore, while income redistribution may address inequality, it is important to consider its potential negative effects on resource allocation and economic growth.

What Are the Effects of a Government Policy of Redistributing