11 Describe rational for income redistributionSolutionThe re

11. Describe rational for income redistribution

Solution

The real reason for income redistribution is ensuring economic welfare of poor ans destitute. It is morally correct to provide for underprivileged groups. Market mechanisms doesn\'t provide for them. It is infact harmful for them in many respects. Also due to proper redistribution economic growth might rise because workers get better food, can purchase medicines and have strong incentive to work. It also promotes creativity of under previlege sections of society.