Economist Simon Kuznets argued that levels of economic inequality are in large part the result of stages of development. According to Kuznets, countries with low levels of development have relatively equal distributions of wealth. As a country develops, it acquires more capital, which leads to the owners of this capital having more wealth and income and introducing inequality. Eventually, through various possible redistribution mechanisms such as social welfare programs, more developed countries move back to lower levels of inequality.
What types of programs help to redistribute wealth? What is the level of inequality in underdeveloped countries? What introduces inequality to a country? What leads to lower income inequality? What profession does Simon Kuznets have? What did Kuznets argue resulted from stages of development? What does a country acquire as it develops? What do the owners of more capital end up having? What do redistribution mechanisms lead to?