Difference between revisions of "Income Redistribution"
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| − | '''Income redistribution''' is the act or government policy of transferring [[wealth]] from richer individuals to poorer individuals. It takes two forms: ''voluntary | + | '''Income redistribution''' is the act or government policy of transferring [[wealth]] from richer individuals to poorer individuals. It takes two forms: ''voluntary redistribution'' (otherwise known as [[charity]]), and ''compulsary redistribution''. |
| − | Some [[conservative]]s (such as [[Ayn Rand]]) oppose | + | Some [[conservative]]s (such as [[Ayn Rand]]) oppose most forms of redistribution, believing that a person should only receive in income what they are able to earn through the markets. They believe that [[charity]] does harm both to the giver (by depriving him of what he earned), to the receiver (by not encouraging him to ''earn'' his sustenance), and to society as a whole (by taking resources away from those who have shown themselves able to create employment for others, and giving it to [[prodigal]]s. |
| − | Other conservatives favor ''voluntary'' | + | Other conservatives favor ''voluntary'' redistribution through charities, but oppose ''compulsary'' redistribution, which they see as an unjust interference with private property rights. |
| − | [[Liberal]]s generally support both forms of income redistribution. Their position is premised on | + | [[Liberal]]s generally support both forms of income redistribution. Their position is premised on an [[egalitarian]] view of [[economic justice]], that it is unjust for individuals to have grossly different access to economic resources. Because market systems can at times create these inequalities, and because of their belief that individual charitable giving cannot be relied upon to counter these inequalities, liberals tend to advocate some degree of compulsary redistribution of resources as necessary. |
Examples of government programs performing compulsary income redistribution include [[welfare]] and [[progressive taxation]]. | Examples of government programs performing compulsary income redistribution include [[welfare]] and [[progressive taxation]]. | ||
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 16:59, July 17, 2007
Income redistribution is the act or government policy of transferring wealth from richer individuals to poorer individuals. It takes two forms: voluntary redistribution (otherwise known as charity), and compulsary redistribution.
Some conservatives (such as Ayn Rand) oppose most forms of redistribution, believing that a person should only receive in income what they are able to earn through the markets. They believe that charity does harm both to the giver (by depriving him of what he earned), to the receiver (by not encouraging him to earn his sustenance), and to society as a whole (by taking resources away from those who have shown themselves able to create employment for others, and giving it to prodigals.
Other conservatives favor voluntary redistribution through charities, but oppose compulsary redistribution, which they see as an unjust interference with private property rights.
Liberals generally support both forms of income redistribution. Their position is premised on an egalitarian view of economic justice, that it is unjust for individuals to have grossly different access to economic resources. Because market systems can at times create these inequalities, and because of their belief that individual charitable giving cannot be relied upon to counter these inequalities, liberals tend to advocate some degree of compulsary redistribution of resources as necessary.
Examples of government programs performing compulsary income redistribution include welfare and progressive taxation.