Final answer:
To restore equity, progressive taxation, social welfare programs, and policies to correct historical injustices are used. These redistribute wealth, provide assistance to low-income populations, and address past discrimination. There is debate about the balance between equity and equal treatment under the law.
Step-by-step explanation:
There are various ways to restore equity within a society, many of which involve strategies for the redistribution of wealth to promote fairness and provide more equal opportunities for all citizens.
One main approach is progressive taxation, where wealthier individuals are taxed at a higher rate than those with lower incomes. This method allows governments to collect funds that can then be used for social welfare programs designed to assist low-income families, such as providing food stamps, affordable housing, and medical care. Additionally, these funds support education grants that enable equal access to quality education for all segments of the population.
Other methods include ensuring a broad ladder of opportunity for all, which might involve policies aimed at improving access to quality education, employment, and entrepreneurial opportunities. There is also the tool of an inheritance tax, which levies taxes on large inheritances, redistributing wealth that would otherwise continue to concentrate within wealthy families.
Moreover, policies aimed at correcting historical injustices can contribute to restoring equity. The Biden administration's proposal of special equity grants for marginalized groups adversely affected by past discrimination, such as Black Americans, is an example of tailoring policy to directly address disparities resulting from historical inequities.
However, it is critical to note there is debate around these approaches. Some see equity-based initiatives as essential to address long-standing disparities, while others worry they might undermine principles such as equal treatment under the law.
Economists don't necessarily agree on the extent of inequality that is too much, but they can outline policy options and trade-offs to guide decisions on methods to reduce economic disparities.