Question

How does the market mechanism distribute income?

Answer 1

Market mechanism are changed by laws, incentives and other measures used to promote a combination of preventive , curative and rehabilitative services, including health promotion to improve health and to help the patient try and receive the most suitable treatment at any time.

In recent years there has been added recognition that income allocation can be a special form of public benefit in some ways. From this perspective, for the simple reason that solidarity creates benefits within society as a whole but external to individual agents, the market should not guarantee fair distributions. Left to its automated processes, the market instead “ produces ”less redistribution than would be “ efficient” or socially acceptable, due to the principle of free-riding.

So it's reasonable to assume there may be a majority of risk-averse people who, due to bad luck, don't accept the possibility of ending the market game at the bottom. It follows that the assurance of a minimum income standard for all in democratic societies is a critical condition for ensuring the system's effectiveness. Economies with high income inequalities (such as in third world countries) are now known to grow at a lower rate than those with a more equitable distribution.

However, extremely unequal income levels endanger the social viability of a society. However, there has been a growing realization that the communities in which we live are dynamic structures that simultaneously have equal rights but unequal resources. We are at once members of the “citizenship club,” in which we recognize each other and we are obliged to recognize each other as equal (one person, one vote), and members of the “ market club, ”the rules of which reward and punish transactions whose meaning is different from what forms the relationship between equal citizens