What is the difference between distribution of wealth and distribution of income?
May 23, 2010 - 5:29 am
I am wanting to know how the distribution of wealth can be distinguished from the distribution of income? In addition, what is the key determining factor in these two ideas?
Wealth is the overall measure of how "rich" a person is.
Income is how much a person earns.
Therefore, distribution of wealth refers to the distribution that benefits everyone because it divides everything equally.
Distribution of income is great too but it leaves more for some because in this type of distribution, only 1 part of wealth is divided (income).
In short,
Distribution of Wealth=everything
Distribution of Income=part
May 23rd, 2010 at 10:51 am
Wealth is the overall measure of how "rich" a person is.
Income is how much a person earns.
Therefore, distribution of wealth refers to the distribution that benefits everyone because it divides everything equally.
Distribution of income is great too but it leaves more for some because in this type of distribution, only 1 part of wealth is divided (income).
In short,
Distribution of Wealth=everything
Distribution of Income=part
References :
May 23rd, 2010 at 11:28 am
Although wealth can take on many different forms, in this instance wealth refers to accumulated assets, the dollar value of what is owned. So the distribution of wealth refers to taking assets from some, adding assets to others.
Income can be considered to be current receipts of something of value, such as your recent paycheck. Taxes withheld from the paycheck so the government can pay for something would be an example of distribution of income.
In short, wealth refers to accumulation, income refers to current earnings.
References :