How to Redistribute Income

Studies show that our well-being rises with income. A 10% increase in income for someone earning $50,000 is only $5,000 and for someone earning a billion dollars a year it's a hundred million dollars. The important thing is diminishing marginal benefit or diminishing marginal utility from income. When we redistribute from folks who have a lot but don't much benefit from extra money to those who would get a lot of benefit has the potential to raise total well-being in society. Think about a single mom who's struggling to get by earning $10,000 a year and what it would mean to her if she got an extra thousand dollars you know being able to buy more food