Acta Oeconomica 28. (1982)

1982 / 3-4. szám - Gara, J.: The Social Policy Aspects of the Centralized Redistribution of Income in Capitalism

9 Acta Oeconomica, Vol. 28 (3-4), pp. 405-419 (1982) J. GARA THE SOCIAL POLICY ASPECTS OF THE CENTRALISED REDISTRIBUTION OF INCOME IN CAPITALISM The article approaches income redistribution under capitalism from the social policy aspect, that is, the subject of the study is the income equalizing effect of income redistribution. The authoress realizes that, although the more unequal the original distribution mathematically is, the more income equalizing the given redistribution ought to be in reality, it is characteristic that the income equalizing effect of redistribution is greater where also the primary distribution is less unequal. While for taxation to exert a positive income redistributing effect both the volume and the proportion of taxes have to be progressive, benefits have a positive income levelling impact as long as their proportion is regressive, that is, their proportion diminishes in the higher income brackets, even if the extent of benefits increases with growing incomes. I. The conceptual sphere and correlations of centralized redistribution of incomes The redistribution of incomes is to be understood as the income flows in a given country in a given period, as compared to the primary distribution. The centralized redistribution of incomes is a combined system of the taxations of incomes and of the social benefits (transfers) by the state which is realised in the budget on the macroeconomic level and is expressed in the relation of the final income? of households to the primary incomes from the micro-economic aspect.* The social policy effect of the capitalist centralised income redistribution is a reduction of the income inequalities (in the following: “income equalising” effect),** which it is important to analyse from the macro-economic as well as the micro-economic aspects. The redistributing effect must be examined in its relations to economic develop­ment level, political and social conditions, the inequalities of the primary income distribution and the systems of income redistribution, observing also the changes in time of the effect reducing the inequalities of incomes, and the trend of these changes. *1 do not examine the income flows within the household sphere, nor the benefits received in the scope of enterprise social policy. **Of the functions of social policy reduction of the inequalities in income is one of primary importance. The fight against inequalities has played an important role in the social policy of the capitalist countries from the mid-1950s, when it became clear that social inequalities persisted in the welfare states and poverty did not disappear, either. In the 1970s a new and not so highly aimed effort began to show: equality was given up as irrealistic and the word “equity” has been substituted for it in a growing number of cases. Acta Oeconomica 28,1982

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