4 A growing portion of public sector activity involves income redistribution. Economic analysis indicates two potential sources

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4 A growing portion of public sector activity involves income redistribution. Economic analysis indicates two potential sources of pressure for income redistribution:

(a) the public-good nature of antipoverty efforts and

(b) self-interest. From the viewpoint of a vote-maximizing entrepreneur, there is incentive to support redistribution from unorganized to well-organized groups. Considerable income redistribution in the United States is of this type.

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Essentials Of Economics

ISBN: 396414

2nd Edition

Authors: James D Gwartney; Richard Stroup; J R Clark

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