write two paragraphs on the polices to reduce income inequality and poverty. Explain the content of these policies and make a comparative assessment.! Solution Poverty is of two type-primary and secondary. In the former people face lack of resource and wealth to meet up the subsistence. On the otherhand, the later is one where people face impediment to have command and control over his rights. Former one is more severe. To reduce that many policies could be taken. For instance reduction in umemployment. This mainly belongs to LDCs. Disguised, cyclical unempyoment is an acute phenomenon of LDCs. Hence, poverty can be reduced by providing the unemployed people a justified employment. Next, progressive taxation can also be prudential to redistribute wealth but whether that can actually happen in reality without any obstacle or not is questionable as rich tax payers will not be too happy with it and even they are sources of finance of politics. When politics enter into cost- benefit analysis economy gets distorted from his efficient point. Most important point is to give benefits to poor, viz. subsidy, rationing etc. Even they can be provided minimum wage programme for specific time, viz. MNREGA in India. Lastly, in many cases producers exploit labourer. Hence, by implementing minimum wage law this can be cure out. Inequality refers to the unequal distribution of wealth among people. Payment must be equal to marginal product ensures inequality in the economy. But there should be a certain upper bound to that, beyond that it can be boomerang for the economy and it can act as an obstacle to growth. To reduce this progressive tax is an important tool. Taking wealth as a form of tax and redistributing that via expenditure for a certain group or for all reduce the inequality. Providing employment programme, implementing minimum wage laws, benefits in kinds, levying direct and indirect taxes on certain commodities can be effective to redistribute the wealth and reducing poverty. Inequality and poverty are to some extent overlapped and complements of each others. Hence, targetting to reduce one can be fruitful and its effect can tricle down to the other as a bless. Normative economics support the above views with no doubts but implementation of it in practice in many times often become difficult due to self centered persons, politics, social and emotional reasons and so on..

1. write two paragraphs on the polices to reduce income inequality and poverty. Explain the content
of these policies and make a comparative assessment.!
Solution
Poverty is of two type-primary and secondary. In the former people face lack of resource and
wealth to meet up the subsistence. On the otherhand, the later is one where people face
impediment to have command and control over his rights. Former one is more severe. To reduce
that many policies could be taken. For instance reduction in umemployment. This mainly
belongs to LDCs. Disguised, cyclical unempyoment is an acute phenomenon of LDCs. Hence,
poverty can be reduced by providing the unemployed people a justified employment. Next,
progressive taxation can also be prudential to redistribute wealth but whether that can actually
happen in reality without any obstacle or not is questionable as rich tax payers will not be too
happy with it and even they are sources of finance of politics. When politics enter into cost-
benefit analysis economy gets distorted from his efficient point. Most important point is to give
benefits to poor, viz. subsidy, rationing etc. Even they can be provided minimum wage
programme for specific time, viz. MNREGA in India. Lastly, in many cases producers exploit
labourer. Hence, by implementing minimum wage law this can be cure out.
Inequality refers to the unequal distribution of wealth among people. Payment must be equal to
marginal product ensures inequality in the economy. But there should be a certain upper bound
to that, beyond that it can be boomerang for the economy and it can act as an obstacle to growth.
To reduce this progressive tax is an important tool. Taking wealth as a form of tax and
redistributing that via expenditure for a certain group or for all reduce the inequality. Providing
employment programme, implementing minimum wage laws, benefits in kinds, levying direct
and indirect taxes on certain commodities can be effective to redistribute the wealth and reducing
poverty.
Inequality and poverty are to some extent overlapped and complements of each others. Hence,
targetting to reduce one can be fruitful and its effect can tricle down to the other as a bless.
Normative economics support the above views with no doubts but implementation of it in
practice in many times often become difficult due to self centered persons, politics, social and
emotional reasons and so on.