Government had made many policies to reduce income inequality in the United States. There are also welfare programs organized to help people in need. Income redistribution has been used around the country to help poor people. “Economic efficiency occurs when a society obtains the largest possible amount of output from its limited resources. Equity occurs if a society distributes its economic resources fairly among its people” (John, 2008). A trade off exists between equity and efficiency. Society choose different types of political and economic systems based on different perceptions of efficiency and equity. The causes of income inequality can vary by skills, gender, education and social status. “Income inequality has grown increasingly evident since the 1980s, when the distribution of income had 30 to 35% of …show more content…
Negative income tax guaranteed income, it pays to work. You can always work to earn more. A guaranteed income removes that discouragement to work, and allows everyone to earn more without being penalized. Income inequality is the unequal distribution of household or individual income across the various members in an economy. The current welfare system punishes you for working. If you take a job and increase your income, you lose your benefits. Taking income from people with higher incomes and providing income to those with lower incomes is called redistribution. I would help pay for poor children 's healthcare or school textbooks, because my money is going to a worthy cause. But, I would not support income redistribution because some people take advantage of the income redistribution even though they are capable of working. They live separate from their families just to get food stamps or other benefits. For some families, the welfare programs go till three generations. People do not feel the need to work hard and obtain money from these