When the government enacts policies to make the distribution of income more equitable, it distorts incentives, alters behavior, and makes the allocation of resources less efficient.

Equitable Distribution

A principle aiming for a fair allocation of resources and wealth across society. It doesn't necessarily mean equal distribution but focuses on ensuring individuals have fair access to resources and opportunities.

Allocation of Resources

The process of distributing scarce resources among various uses or competing demands to maximize output or efficiency in an economy.