What social policies were introduced to combat growing income inequality?

Several social policies have been introduced globally to combat growing income inequality, including progressive taxation, minimum wage laws, and welfare programmes.

Progressive taxation is a policy where the tax rate increases as the taxable amount increases. This system is designed to lessen the tax burden on people with a lower ability to pay, as they would owe less tax both as a percentage of their income and in terms of absolute amounts. Progressive taxation is seen as a way to redistribute the wealth within a society, reducing income inequality. For example, in the United States, the federal tax system is progressive, with rates ranging from 10% to 37% of income.

Minimum wage laws are another policy used to combat income inequality. These laws set a floor for wages, with the aim of ensuring that workers receive a wage that can provide a basic standard of living. By setting a minimum wage, governments aim to reduce poverty and income inequality. However, the effectiveness of minimum wage laws in reducing income inequality is a subject of ongoing debate among economists.

Welfare programmes are another key policy tool used to combat income inequality. These programmes provide financial assistance to individuals or families who are unable to support themselves, either due to unemployment, low income, disability, or other factors. Welfare programmes can take many forms, including unemployment benefits, housing assistance, food stamps, and healthcare programmes. By providing a safety net for those in need, welfare programmes aim to reduce income inequality.

In addition to these policies, some countries have also introduced measures such as universal basic income (UBI), where all citizens receive a regular, unconditional sum of money from the government. This is seen as a way to combat income inequality by providing everyone with a basic income, regardless of their employment status or income level. However, UBI is a relatively new concept and its effectiveness in reducing income inequality is still being studied.

In conclusion, a range of social policies have been introduced around the world to combat growing income inequality. These policies aim to redistribute wealth and provide a safety net for those in need, with the ultimate goal of creating a more equal society.