Redistribution of income is defined as the distribution of income equally to every individual who is a part of the society irrespective of the standard of living of that individual. The main aim of the redistribution of the income is to the balance the economic stability of the society by spreading the resources equally to every section, to the poor and the unemployed. The redistribution in the current scenario was not effectively carried as the distribution channel (the government agencies) which was meant to supply the necessary funds to the individuals in need was not effective. There is a huge difference between the amount allocated and the amount actually spent when it is under implementation. The academic researchers and critics are more concerned on the highlighting the various developments aspects, they have not answered to the fact whether they have been implemented properly. According to Dwight R. Lee the fruitfulness of the system of distribution system has to be studied in order to the effectiveness of the program. The dollars are collected from the low or average income groups and the redistribution of the funds collected does not reach the people in need, the income is stranded in the hands of an influential group which has a political mark for its backing. The allocation of the funds even is done for the political benefit rather than looking into the actual need to which the income has to allocate.
The fourth section will explain the redistribution of income and wealth narrowing the gap between the rich and the poor in the United Kingdom. Lastly, the essay will look into regional policies within the United Kingdom that encourage companies to set up factories or business establishment in low socio-economic areas in a bid to boost the quality of life in such areas.
The main cause of inflation is the increase in quantity of money supplied in the economy. The costs of inflation to the public include menu costs, shoeleather costs, inefficient allocation of resources, redistribution of income, uncertainty, and distortion of tax payments.
These flaws are called market failures, " a situation where resources cannot be efficiently allocated due to the breakdown of price mechanism caused by factors such as establishment of monopolies" (BusinessDictionary.com, 2010).
According to Joseph Stiglits, a political economist, market failures necessitates the intervention of the government (2002).Some of the market failures include imperfect competition, externality, public goods and imperfect information (Stiglitz, 2002).
Representations of these ethics can be found, for example, in various UN conventions and declarations, e.g. the Universal Declaration of Human Rights adopted by the UN General Assembly, the International Convention on the Rights of the Child, the Rio Declaration on the Environment and Development and the recommendations of Agenda 21.
In market economics (specifically that of perfect competition), market determines the wage of an employee through the factors of demand and supply as described by the ‘invisible hand’ of Adam Smith. But in case of
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The main aim of the redistribution of the income is to the balance the economic stability of the society by spreading the resources equally to every section, to the poor and the unemployed. …