Question

What role, if any, do you believe the government should play in redistributing wealth within a society? Suppose someone points out that since a relatively small percentage of Americans own a large percentage of total assets, the government should redistribute wealth to those less fortunate. Which part of that statement is normative and which part is positive, if any? Please explain.

Answer 1

The govt should play indirect role. It should increase taxes and provide subsidies. It should also provide more unemployment allowances, food stamps, basic health facilities (free for poorly), less expensive electricity, water to poor etc . It should introduce high rates of inheritance tax. But while formulating these policies govt should not reduce ability and will of people to work, save and produce.

Relative small percentage of own a large percentage of assets = positive statement because it is fact. It is what is.

The govt should redistribute wealth to those less fortunate = it is normative statement. It is what ought to be