Why Do Some Rich Countries Redistribute More Than Others?
Writer: Rehaan Gulati Editor: Krithi Kankanala Introduction Redistribution of income is one of the fundamentals of a modern welfare state. It helps reduce inequality, promotes political stability and helps prevent market failures through social insurance. While all countries, high or low income, do redistribute, low income countries often have structural issues such as unstable governments and a limited fiscal capacity that prevent fair redistribution. On the other hand, high income...