Explain The Functions Of Government "Improving The Distribution Of Income"?
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Even then the invisible hand works and is marvelously efficient, it may at the same time produce a very unequal distribution of income. Under laissez-faire, people end up rich or poor depending on their inherited wealth, on their talents and efforts, on their lick and finding oil or owning land in the right place, and on their gender or the color of their skin.
In the poorest societies, there is little excess income to take from the better off and provide to the unfortunate. But as societies become more affluent, they can devote more resources to providing services for poor people; this activity income distribution is the second major economic function of government. The welfare states of North America and Western Europe now devote a significant share of their revenues to maintaining minimum standards of health, nutrition and income.
Income distribution is usually accomplished through taxation and spending policies, though regulation sometimes plays a role as well. Most advanced countries now rule that children shall not go hungry because of the economic circumstances of their parents; that the poor shall not die because of insufficient money for needed medical care; that the young shall receive free public education; and that the old shall be able to live out their years with a minimum level of income.
In the poorest societies, there is little excess income to take from the better off and provide to the unfortunate. But as societies become more affluent, they can devote more resources to providing services for poor people; this activity income distribution is the second major economic function of government. The welfare states of North America and Western Europe now devote a significant share of their revenues to maintaining minimum standards of health, nutrition and income.
Income distribution is usually accomplished through taxation and spending policies, though regulation sometimes plays a role as well. Most advanced countries now rule that children shall not go hungry because of the economic circumstances of their parents; that the poor shall not die because of insufficient money for needed medical care; that the young shall receive free public education; and that the old shall be able to live out their years with a minimum level of income.
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