Question

1. How might government reduce income inequality?
2. Why not reduce wealth inequality instead?
3. What are some of the unintended consequences of government’s attempts to reduce income inequality?

Answer 1

a) governmentcan reduce in equality and tryto promote equity through the tax and other benefitary system. the progressive income tax isa best method to counter inequality. progressive tax in which prporionally more tax from those on higher levels of income and itredistribute welfare benefits to people on low level of income

b)the major reason for the wealth inequality is due to the income inequality. a lower level of people with higher wealth enjoys higher satisfaction on almost all area of life, because thieir primary needs are alreadyattained andthey concentrateon the savingattitude of wealth through their income. but the low income group still spend majority of incomeon mass consumption of their primary needs fulfillment and they lac the saving growth rate.the human capital formation spending isanother concentrated area of the poor income group

c) the unintended consequences of government's attempt to reduce income inequality are following... they are theinvestment ineducation, progressive income tax,, build asset for working families, end residential segregation, increase minimum wage, create job, expand medicaid etc