Pros And Cons Of Income Redistribution

Income redistribution is the redistribution of wealth through social systems such as taxation, fiscal policy and social welfare to distribute wealth to people who have less. It has been a long-time method to decrease the amount of income inequality that has been applied to United States, Germany, and Sweden causing them to reap the benefits. This make me strongly believe that the Australian government should increase the amount of income redistribution. Income redistribution promotes a sense of equality and sustainability by reducing income inequality, provide additional benefits from government expenditure and contribute a fairer economy for people to live in. Here are how the reasons contributes to the benefits of the Australian government …show more content…
Although people have to work hard to earn what they want and that should be followed by all people from different spectrums of wealth, I strongly disagree with that opinion as it doesn’t focus on the full picture of income redistribution. Even though the wealthy have the money they earned their well-deserved income, their growth of wealth has been grown out of proportion growing by 59% since the compared to the lowest earning group with their income only growing by 15% since the mid-1970s and since they are wealthy it shouldn’t be an issue to them to contribute more money of other people needs. With the lowest income group mainly consisting of single parents, unemployed, mentally ill and people from culturally and linguistically diverse background making it difficult for them to earn a high income. If this continues through the few years it could take a severe hit to economic growth, giving the Australian government a lesser chance of increasing income redistribution. With the Australian government increasing income redistribution it can contribute to Australia becoming a more egalitarian