Income redistribution refers to the manner in which personal income is spent across different classes in society. It involves programs and policies aimed at reducing income inequality by shifting wealth from the richer segments of society to the poorer segments.
A graphic depiction of income distribution across the population, indicating the degree of economic inequality.
Pareto's Law, also known as the 80-20 Rule, posits that roughly 80% of effects come from 20% of the causes. In economics, it highlights income distribution where a small percentage of the population controls the majority of the income. This principle is essential for understanding resource allocation, inequality, and economic strategies for improving the lot of the poor.
A value-added statement outlines the wealth that a company has created for its stakeholders and how that wealth is distributed among employees, shareholders, governments, and others.
