ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Redistribution of income and wealth is the transfer of income and wealth (including physical property) from some individuals to others through a social mechanism such as taxation, welfare, public services, land reform, monetary policies, confiscation, divorce or tort law.

Detailed explanation-2: -A few examples of redistributive policies are Head Start (education), Medicaid (health care), Temporary Assistance for Needy Families (TANF, income support), and food programs like the Supplementary Nutritional Aid Program (SNAP).

Detailed explanation-3: -Redistribution is generally referred to as ‘vertical’ (between richer and poorer people) or ‘horizontal’ (between groups of people with different characteristics – for example, from people without children to those with children, or from younger to older people).

Detailed explanation-4: -Giving unwanted toys to those less fortunate, smiling at someone on the street, holding doors open for people or visiting a sick relative is still charity because it warms someone’s heart.