Question

Reflect on what you have learned about government intervention to redistribute income and assist with retirement and healthcare funding. Write a two page presentation of your own views in your own words about the sources of inequality in wealth and income and whether this inequality should be reduced and how.

Answer 1

Government makes efforts to redistribute income as it is an essential part of the contract in a democracy of a welfare state.

Some ideas for your presentation:
Retirement and Healthcare funding
1. Healthcare funding improves productivity, quality of life of workers, reduces expenditure on health which the government may have to incur during the old age/ during outbreak of epidemcis etc.
2. Retirement social security enables an individual to consume lavishly during his prime, thereby boosting consumption and retirement social security enables individuals with no sources of pension/ income to maintain a decent standard of life.

Sources of inequality in wealth and income
From inheritance of property from parent to child as well as the ability of the rich to live off on rental incomes is a source of inequality of wealth and income.
Further, items of conspicuous consumption such as Luxury goods enhance inequality
Also, inequality is increased by acts of crony capitalism, presence of mafia/ corruption of the state etc,
In recent years, education has also become a source of inequality as it has become inaccessible to the poor

Reducing inequality
Taxes on inheritance and higher income taxes so as to fund a larger social security net
Funding Education, health and basic infrastructure, by the government to improve access
Efficient delivery of services, reduced corruption etc.

Hoep this helps