Answer to Question #107983 in Macroeconomics for Thomas

Question

Before taxes and social spending, the income of the richest 10 per cent in South Africa is more than 1 000 times bigger than the poorest 10 per cent. After taxes and social spending, this gap falls so that the income of the richest 10 per cent becomes 66 times bigger than the poorest 10 per cent … (World Bank 2014). This in an example of...

Answer 1

This is the example of Fiscal Policy and Redistribution in an Unequal Society.

https://www.worldbank.org/en/country/southafrica/publication/south-africa-economic-update-fiscal-policy-redistribution-unequal-society