ECON 1116 Chapter Notes - Chapter 20: Redistribution Of Income And Wealth, John Stuart Mill, Economic Mobility
7 Dec 2016
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Churchill: nations that use market mechanisms to allocate achieve greater prosperity than those that do not. Churchill: the prosperity that market economies produce is not shared equally. Many economists believe the gov should redistribute income to achieve greater equality distorts incentives, alters behavior and makes allocation less efficient. Top 5% of families receive 21. 3% of all income greater than tot income of poorest 40% Data is hard to collect from other countries. Most equality in japan, least equality in. Us had more income disparity than most other economically advanced countries like. Japan and germany more equal income than some developing countries (south. Poverty line is absolute rather than relative families pushed above poverty line as econ growth pushes income distribution upward. Increased inequality has prevented poorest families from sharing in the greater economic prosperity. Poverty affects all groups, but not with = frequency: poverty correlated with race blacks and.
