From Inequality to Redistribution

Economic inequality operates in time and space. Inequality in time is about the economic well-being of the present generation compared to that of our grandchildren and future generations, and it is basically about the willingness of our generation to invest some of our wealth to allow for greater economic security for future generations. In economics, it is about the social discount rate. Inequality in space is about the distribution of income and wealth between people and nations in our time. Greater inequality is linked to immiseration, to social distress and several indicators of negative societal impact, including societal or state disintegration. Causes of increasing inequality include lopsided political influence to provide for “wealth pumps”, unfair tax systems and “trickle down” type economic fallacies, absurd remuneration of top executives, managers, and technical experts at the expense of lower level employees, also causing monopolization of business, and increasing corruption. The result is social disintegration and the undermining of democratic leadership for concerted action, adding to the overall challenge.