Consumer Financewhich reports a collection of data on wealth.

Even if they cannot answer the question of how much inequality is too much, economists can still play an

important role in spelling out policy options and tradeoffs. If a society decides to reduce the level of economic

inequality, it has three main sets of tools: redistribution from those with high incomes to those with low

incomes; trying to assure that a ladder of opportunity is widely available; and a tax on inheritance.

Redistribution

Redistribution means taking income from those with higher incomes and providing income to those with

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15.5 • Government Policies to Reduce Income Inequality 377

lower incomes. Earlier in this chapter, we considered some of the key government policies that provide

support for people experiencing poverty: the welfare program TANF, the earned income tax credit, SNAP, and
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