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by RivieraKid 360 days ago
It seems pretty straightforward to me.

Wealth redistribution has this positive effect: If you take $1000 from a billionaire and give it to a very poor person, total happiness increases.

It also has a negative effect, high level of redistribution can inhibit production.

The optimal level of redistribution depends on what you're optimizing, it's usually a mix of societal happiness and some notion of fairness. (I personally would want to optimize happiness and prosperity.)