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Distribution of income and wealth (1 Viewer)

school4nerds

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hey guys,

a part of a question i have to answer is "what are some government policies which manage the distribution of income and wealth"

so far i have:

  • taxation
  • award wages
  • transfer payments
  • workers compensation
  • loosening monetary policy

does anyone have any other suggestions?
 

barbernator

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you could talk about automatic stabilisers. even though they encompass welfare and taxation, it is a nice extension of application

also, monetary policy =/= government policy. The RBA is a seperate entity from the government, so within this question, you should talk entirely about fiscal policy

also, make sure you say "progressive taxation"
 
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school4nerds

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WELFARE PAYMENTS!! lol

you could talk about automatic stabilisers. even though they encompass welfare and taxation, it is a nice extension of application

also, monetary policy =/= government policy. The RBA is a seperate entity from the government, so within this question, you should talk entirely about fiscal policy

also, make sure you say "progressive taxation"
thanks!

i thought transfer payments were the same as welfare? :\

ahh what are "automatic stabilisers"
 

barbernator

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thanks!

i thought transfer payments were the same as welfare? :\

ahh what are "automatic stabilisers"
shit didnt see that bit, they are. automatic stabilisers are elements of government policy that automatically kick in to increase/decrease aggregate demand relative to cyclical conditions of bust/boom. Although this is mainly used to stimulate or contract consumer spending, it is an effective way of providing more or less welfare, and taxing more or less from high income earners depending on economic conditions. Hence, reallocating income as the question said.

The 2 main automatic stabilisers are
- Welfare payments - As the economy turns down, there are more unemployed people, and more people earning less, hence more people would fall under the welfare threshold and start receiving government welfare. This allows the government to give more to the less well off
- Progressive taxation - As the economy expands, incomes rise, and bracket creep for the rich kids results in them being taxed more. This allows the government to take more income from the rich.
 

gnrlies

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you could talk about automatic stabilisers. even though they encompass welfare and taxation, it is a nice extension of application

also, monetary policy =/= government policy. The RBA is a seperate entity from the government, so within this question, you should talk entirely about fiscal policy

also, make sure you say "progressive taxation"
RBA is a statutory authority... It is part of govt.

Not entirely relevant to dist of y and wealth, but could talk about it in context of two speed economy? Inany event the reason why not to talk abt it is not due to its independence.
 

RishBonjour

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RBA is a statutory authority... It is part of govt.

Not entirely relevant to dist of y and wealth, but could talk about it in context of two speed economy? Inany event the reason why not to talk abt it is not due to its independence.
This. he knows what he is talking about.
 

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