Areas of Intervention

a) Altering the functional distribution

In this area of intervention, altering the functional distribution, as the name implies, ventures
more toward transforming the allocation of rewards for the services of the factors of production.
The said area of intervention is also deemed as a traditional economic approach. This intervention
or theory argued that lowering the labor price relative to capital is advantageous to the poor. It will
cause employers to add more labor that will surely increase the number of employees, increase the
incomes, and provide more job opportunities.

Moreover, revamping factor prices will significantly affect the economy. It will not only boost
the level of productivity and efficiency but also lessen inequality by offering opportunities to the
unemployed to use and hone their crafts, which will result in growth in the economy.

b) Mitigating the size distribution

The second area of intervention, which is mitigating the size distribution, concentrates on
addressing inequalities in opportunities, income, education, and power. It seems like it is still
insufficient to alter factor prices in elevating economic growth and eradicating extreme poverty,
especially when the leading reason for the unequal allocation of personal incomes in most
developing nations is these countries' unequal and highly robust practices of asset ownership
(wealth). Hence, other means, such as the income distribution between the families or other
sectors, should also be regarded in diminishing inequalities.

Furthermore, this theory directly stresses reducing the full control of assets, the unequal
distribution of power, and the unequal access to educational and income-earning prospects that
depict numerous developing nations. By fair or equal distribution, people would have wider access
to good education and opportunities. That said, in order to lessen or much better eradicate
inequalities, a fair distribution would help people's struggles, especially in increasing their income.
Also, redistribution policies could be pursued. For instance, governments, at least in developing
countries that are growing, must concentrate on facilitating funds for low-income groups to aid
them.
c) Moderating (reducing) the size distribution at the upper levels

This theory or area of intervention, moderating (reducing) the size distribution at the upper
levels, argues that opportunities should be equally distributed through the enforcement of
legislated progressive tariffs on incomes and wealth. In other words, the more affluent a person is,
the proportionately more the government will take away from that person in the form of taxes. The
collected money of the government from taxes could be utilized in investments and funding for the
development of the country. Thus, there would be fairer allocation since an asset's concentration
will be lessened.

d) Moderating (increasing) the size distribution at the lower levels

The fourth area of intervention, moderating (increasing) the size distribution at the lower levels,
stresses helping the poor by eradicating poverty and providing opportunities through public
expenditures of tax revenues to raise the incomes of the poor either directly or indirectly. An
example of a direct advantage of increasing the size distribution at the lower levels is
unemployment benefits, while an indirect advantage would be infrastructure. In addition, the
extended provision of publicly provided consumption goods and services and direct transfer
payments at lower levels is also a potentially important instrument designed to eradicate poverty.
With these, the economy would surely benefit greatly. These would create opportunities to help the
poor get out of the deprivation.