Redistribution of income and wealth is the process by which governments change how money and assets are shared among the population to reduce inequality and poverty.

Key methods include:

• Progressive taxation, where people who earn more pay a higher percentage in taxes.
• Providing welfare benefits, subsidies, and essential public services like healthcare, education, and housing.
• Using tools such as tax credits, income support, and minimum wage laws.

Important considerations:

• Income refers to money earned, while wealth includes assets like property, shares, and savings. Redistributing assets is generally more difficult than redistributing income.
• Public services act as non-cash benefits that help level the playing field for lower-income individuals.
• While redistribution promotes equity, some critics argue it may discourage people from working hard or investing, potentially lowering economic efficiency.