World Economic Systems Questions
In a socialist economy, income redistribution refers to the practice of redistributing wealth and resources from the affluent or higher-income individuals to the less privileged or lower-income individuals. This is done through various means such as progressive taxation, where higher-income individuals are taxed at a higher rate, and social welfare programs that provide assistance and support to those in need. The goal of income redistribution in a socialist economy is to reduce income inequality and ensure a more equitable distribution of wealth and resources among the population.