How does a command economy handle income redistribution?

Economics Command Economy Questions



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How does a command economy handle income redistribution?

In a command economy, income redistribution is typically handled by the government. The government determines how resources and wealth are distributed among the population, aiming to reduce income inequality and ensure a more equitable distribution of wealth. This is achieved through various means such as progressive taxation, welfare programs, subsidies, and price controls. The government may also control wages and set limits on income disparities to promote a more equal distribution of income.