Economics - Equity in the distribution of income and wealth
Equity in the distribution of income and wealth
While the competitive market efficiently allocates resources, it
inequitably distributes income and wealth. It only rewards people who have
productive resources that are in demand. The elderly, the disabled and the
unemployed receive no factor income. Even if people do have resources in
demand, they earn differing levels of factor income. Inequalities in the
distribution of income are caused by many factors including skills,
qualifications, degree of responsibility, the nature of the job and wealth.
Government intervention is required to ensure a fairer distribution of
income and wealth.
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