In: Finance
On average, how would you think the typical person in
the following socio-economic groups would view an income
redistribution scheme, and WHY?
A single mother-of-color with two teenage children
An unmarried computer engineer in San Francisco earning $100,000
per year
An immigrant from abroad who has worked himself up form nothing to
riches by starting a successful real estate company
A democratic congresswoman from the inner city
A republican senator from a rural state
A 31-year-old foreign exchange trader in an international bank
earning $7,000,000 in commissions annually. (This actually
occurs!)***
A homeless person in San Francisco
Yourself
Redistribution of income is the transfer of income from some individuals to others by means of a social mechanism such as taxation, charity, welfare, public services, monetary policies,etc.Views of different people:
A single mother-of-color with two teenage children--> Not
much happy since rather then money she here needs the basic
amenities and would prefer to have economic growth and
welfare.
An unmarried computer engineer in San Francisco earning $100,000
per year-- He will be unhappy since he will have to pay a major
share and also he himself wants to save but will not have much
funds to save.
An immigrant from abroad who has worked himself up form nothing to
riches by starting a successful real estate company-->He will be
really unhappy since he is earning huge amount of money and will
have to pay a major part of his income in the from of taxes or
other schemes and will ultimately be loosing a lot of money.
A democratic congresswoman from the inner city--> She would not
be much happy because politicians believe that bringing economic
growth is more important then just mere redistribution of
wealth.
A republican senator from a rural state--> He/she will be happy
because ultimately the poor get the benefit from these schemes and
they will be happy to have such distribution.
A 31-year-old foreign exchange trader in an international bank
earning $7,000,000 in commissions annually. - He will be really
unhappy since he is earning huge amount of money and will have to
pay a major part of his income in the from of taxes or other
schemes and will ultimately be loosing a lot of money.
A homeless person in San Francisco-Not much happy since rather then
money he here needs the basic amenities and would prefer to have
economic growth.
Yourself- Neutral since we fall in the middle income slot and are
nt much harmed neither much benefitted by such schemes.