The redistribution of income, as mentioned the main measure to promote greater income equality, is beneficial in a number of ways, which dictate why this should be a key feature of government economic policy. Firstly, the redistribution of income leading to greater income equality, where the effect is greater on LEDC’s as opposed to MEDC’s, as in general, the income inequality is higher in LEDC’s, such as brazil for example, can lead to a significant reduction in poverty, especially absolute poverty where the person lives on less than $1.25 per day, as they will have a higher disposable income, improving their daily living conditions as the amount which is affordable has increased significantly.
Next, greater income equality would boost economic growth, as it would boost consumer spending due to a higher number