What are the examples of redistribution

Distribution policy


the state correction of undesirable developments that are caused by market events and which are in contradiction above all to socio-political goals. Measures of Redistribution are z. B. implemented through income redistribution or through wealth redistribution.

As part of financial policy, there is a redistribution z. B. through different levels of tax deductions (tax progression) from income. This places a greater burden on those receiving higher incomes than those on lower incomes.

A redistribution of assets takes place e.g. B. through inheritance tax, in which the amount of the tax to be paid depends on the amount of inherited property and thus tax higher inheritances more heavily than lower ones. Redistribution measures also include the payment of social benefits, unemployment benefit II or housing benefits, as they flow to needy households and are granted without consideration.

Statistics on poverty and wealth reveal that state measures to redistribute income and wealth are only effective to a very limited extent; rather, the gap between poor and rich sections of the population is widening.

Duden Wirtschaft from A to Z: Basic knowledge for school and study, work and everyday life. 6th edition. Mannheim: Bibliographisches Institut 2016. Licensed edition Bonn: Federal Agency for Civic Education 2016.