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RE: Steem Inflation : A Tool for Efficient Creation and Effective Redistribution of Wealth
thank you for shiring @prameshtyagi
Growth is the best tool to curb poverty in developing countries. I believe that policies to promote economic growth actually boost GNP and do not help to alleviate poverty, so I think redistribution of wealth is the real key to containing the scourge of poverty.
Since the 1950s, development economists have emphasized that the increase in GNP does not necessarily mean an increase in social welfare rates. From an economic point of view, economic growth is a means and not an end, through which the real goals of poverty reduction and social progress can be achieved.
Well my point is bit different - Incentives through Inflation need to be optimally directed so that people are motivated to contribute positively. If we just donate which induces lethargic behavior, like what is the need to work hard or intelligently if I get my basic needs fulfilled by donation, then we are doing more harm to those whom we donate as well as to entire society.
So wealth redistribution should be attached with an objective to promote positive and constructive behavior.