Punishment is generally a prescribed penalty for a certain action and is implemented by a governing authoritative body. Retaliation is basically “getting back” at someone for wronging you, and is often random or impulsive in nature.
If a child smacks their sibling for no reason, they may be put in time out or have other privileges taken away as punishment. If the child they smacked kicks them in the knee to get back at them, that would be retaliation.
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