Question

In: Finance

On average, how would you think the typical person in the following socio-economic groups would view...

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

Solutions

Expert Solution

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.


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