According to Wikipedia.com, “Income redistribution is a practice designed to level incomes across a society through the transfer of income from wealthier to poorer individuals, either directly or indirectly. Proponents of this practice argue that it promotes the development of a democratic society and addresses a number of social problems that are linked with poverty. Opponents believe that it is a form of theft, suggesting that it involves taking legitimately earned funds away from people and giving them to others. Many governments around the world practice some form of income distribution, and there are varying ways to approach it”. In my opinion, redistribution of income is a valid economic function of our American system of government because it’s a good way to support those who have lower incomes.
Every American’ dreams of finding a job that pays well enough so that they may comfortably take care of their loved ones and themselves for years to come. Most Americans hope to find some way to make a living that they enjoy, something that they view as productive. Unfortunately, many do not have this luxury. In our society, a good portion of the population is forced to hold the base of our country in place while hardly being redeemed for their time and effort, and thus the problem of income inequality. Numbers of these people live from paycheck to paycheck, barely getting by, not because they manage their money poorly, but because the value of their time at work is negligible. Some may even sacrifice happiness at work to find a job that pays better simply because they cannot make ends meet at their current job. Some people sacrifice their sanity and eventually their life just to keep from going under financially.
Many large firms make a lot of money, but there is no trickle down effect. The few on top make most of the money while the average worker does much of the work. Should not the hard worker on the bottom get more? These firms are controlling because they only give out as much as necessary to keep the workers employed. Many of these same firms have companies in other industries, such as entertainment or retail, and a lot of the money they pay out comes back to them through these other industries. Income should certainly not vary with gender or race. These discriminatory practices are pure evidence of income inequality. Children who are born into poverty are already poor and they have no control over that. They have to work very hard with little assistance just to get to the point where a change can be made or an upgrade in class is possible. This sort of classification is attempted to be stabilized by welfare and other government money programs. Today, income redistribution occurs in some form in most democratic countries. In a progressive income tax system, a high income earner will pay a higher tax rate than a low income earner. Two common types of governmental redistribution of wealth are subsidies and vouchers (such as food stamps). These "transfer payment" programs are funded through general taxation. This income redistribution benefits the poor who pay fewer or no taxes.
How then do we find the value of work in our society? One-way, the way that is most prominent in the working world today is salaries are higher where more money is made. To say a person flipping burgers should make the same or even similar amount of money, as a corporate officer of a large firm would be incorrect according to our society’s standards. When it all comes down to it, demand or labor force is where the money is. Most people would agree that income should be based on education and experience. However, this formula applies to minimum wage workers as well as to the CEO of a large corporation. It is true that the roles of most every individual in society are important. People are needed to work minimum wage level jobs just as much as stockbrokers. In today’s fast paced society, however, there is a higher demand for people who have learned a specific trade or skill. CEO’s make more money than fast food workers do because there is a more limited supply of people who are capable of running multi-million dollar corporations. Both work equally as hard but one has a higher-level of skill. This skill is more valuable to society so the income is higher. Regardless, those who work minimum wage jobs still need to support themselves or their family, the CEO and others still want to eat fast food, Therefore, both must be maintained so that they are allowed to live comfortably. If everyone in this nation were aware of the influence that income inequality has on the people’s lives, many would be surprised and outraged. While the incentive’s and rewards of higher income are what fuels the economy, and what raises our standard of living, reaching that level of income has been difficult in the past and seems to be getting worse.