Tuesday, March 25, 2014

[gdihbhnj] Redistribution and Standard of Living

Macroeconomically, one would not expect income redistribution from rich to poor to cause inflation: the same amount of money remains in the economy.

However, on a smaller scale, it seems it would: say, all the poor people get a certain amount more money.  They all need to buy certain basic goods, say, housing.  The same people are competing to buy the same goods, except they uniformly have more money.  This would cause inflation among those goods.

Government assistance in college education has driven up tuitions.

Will income redistribution actually improve people's standard of living?

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