Question 1
Opponents of income redistribution argue that
◦ redistribution violates the proposition that "one is entitled to the fruits of one's efforts."
◦ property income is less just than labor income and thus redistribution of that income is justified.
◦ redistribution encourages too much competition.
◦ Both redistribution violates the proposition that "one is entitled to the fruits of one's efforts." and redistribution encourages too much competition are correct.
Question 2
Proponents of income redistribution argue that redistribution
◦ increases the welfare of all members of society.
◦ will not take place absent government intervention as the market for charity, a private good, is imperfect.
◦ would be agreed to by all members of society if they were risk-loving and contracting from the "original position."
◦ helps those who, through no fault of their own, are unable to earn an adequate income.
The More Things Change, The More They Say the Same: Dividing the Nation's Income
Household Income in the United States by Quintiles, 2009
Income Distribution in the United States, 2009
Determination of Income Inequality
Effect of an Exogenous Shift in Income
The Parade of World Income