Martin Saarinen
Economics
International School of Latvia
Grade. 12
Mr. Polis
14.10.10
Blog - Income Distribution/Taxation
Income distribution and taxation are closely linked. An unequal distribution of income is something that governments do not want, because this means that the society is getting more and more divided into the rich and the poor. As logic and market forces dictate the number of rich people would be smaller than the number of poor people, and as social structure or conduct dictates the rich would be in control over the majority of domestic matters, leaving the poor often without a say. This is something that the government does not want. It is also false to say that income inequality is a bad thing. This is because it needs to be established that an economy needs those with low income jobs and those with high income jobs, the economy needs winners and losers. That is the very basis of a capitalistic economy. Workers such as fac
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