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Economic theory behind policies

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Economic theory behind policies
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Economic theory behind policies 2
1. Income Distribution and Economic Policy
a) According to TWER (Linda Pinkow, 2012) the author says that the income distribution is
a significant effect in most of the enduring issues of political economics. But in TSOWA
(Lawrence mishel, 2012) the authors argue that there should be same income and for them to
redistribute these income there should be a principal function from the government to enable
equal redistribution between the haves and have-nots. Although other people do not support the
income distribution by the government (Sen, 1992) since a statistical summary from TSOWA
(Lawrence mishel, 2012) shows the income distribution of families in the U.S. is highly unequal
since the World War II. The statistics further shows the income inequality to be much lesser than
it was towards the end of the war. But the same statistics shows how there as been a decline of
inqualityof family income slowly from 1946, though the figures starts to increase slowly as from
1969 through 1981 and thereafter up to date there has been a faster increase. However, income
has been distributed unequally in the last 30 years where those at the top have a 20% earning
than the ones below them (Linda Pinkow, 2012). By using Gini coefficients to justify the income
distribution, the U.S. has measured its income inequality with other developed countries like
Canada. This has helped the U.S. to focus on prices and the income distributions of various
markets by knowing their supply and demand.
b) As TWER (Linda Pinkow, 2012) mentions that tax is a very important element in
income distribution since it is imposed mostly on the net income of every individual in the state
and other corporations together with the local government. The tax on income, imports, sales
among various fees have amounted to greater figures of 24.8% of the US GDP. This has made
the U.S. to have the very best and most progressive tax collection systems all over the world thus
this contributes towards the economic stabilty of the nation (Lawrence mishel, 2012). The

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Economic theory behind policies Name Tutor Institution Course Date 1. Income Distribution and Economic Policy a) According to TWER (Linda Pinkow, 2012) the author says that the income distribution is a significant effect in most of the enduring issues of political economics. But in TSOWA (Lawrence mishel, 2012) the authors argue that there should be same income and for them to redistribute these income there should be a principal function from the government to enable equal redistribution between the haves and have-nots. Although other people do not support the income distribution by the government (Sen, 1992) since a statistical summary from TSOWA (Lawrence mishel, 2012) shows the income distribution of families in the U.S. is highly unequal since the World War II. The statistics further shows the income inequality to be much lesser than it was towards the end of the war. But the same statistics shows how there as been a decline of inqualityof family income slowly from 1946, though the figures starts to increase slowly as from 1969 through 1981 and thereafter up to date there has been a faster increase. However, income has been distributed unequally in the last 30 years whe ...
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