Market Distribution of Income
Categories: Econ
The market distribution of income is the market-part of how income is distributed, which contrasts with government distribution, or redistribution, of income (think: social programs, taxes…all that stuff the government does that moves money from higher income levels to lower income levels).
In our mixed economic system, the "free market" part distributes income to people via the jobs they work in the capitalist system. The "planned market" part, like firefighters, public schools, and parks...those kinds of things...aren’t paid for by the natural market. Rather, they’re paid for by governments (your taxes).
If firefighters were to receive a market distribution of income, they’d have to be private firefighters—an insurance or service you could buy, just as you can buy Netflix and private bodyguards. Notably, in other parts of the world, that's now a Thing.
Market distribution of income is usually used in the context of rising income inequality and redistributive measures. The term contrasts income that was distributed from non-market (i.e. governmental) sources, to keep the two sources of income separated when chatting about them. Because clarity is key.