Results for: income-redistribution

What is one problem with inflation?

One problem with inflation is redistribution. Inflation makes some people better off while it makes others worse off. The three things that cause redistribution are price effects, wealth effects, and income effects.

Why the federal government imposes taxes?

The federal government imposes taxes upon its constituents as a means to pay government officials for their efforts, to subsidize public works projects and provide funding for government agencies. The 16th Amendment to the US Constitution allows the government to… Full Answer