Wealth Redistribution

Definition

Wealth redistribution refers to a political policy that aims at leveling the wealth within a society through methods such as taxes or welfare programs.

Analogy

Think of wealth redistribution like slicing a large pizza at a party. If one person has five slices while others have none, you might redistribute those slices so everyone gets at least one piece.

Related terms

Progressive Taxation: A tax system where the tax rate increases as the taxable amount increases; it's one method used for wealth redistribution.

Welfare State: A type of government in which it plays a key role in protecting and promoting the economic and social well-being of its citizens, often through policies like wealth redistribution.

Income Inequality: The unequal distribution of household or individual income across various participants in an economy. It is often presented as the percentage of income related to a percentage of population.