July 18, 2012

The Price of Inequality

I am now reading The Price of Inequality. How Today's Divided Society Endangers our Future by Joseph E. Stigliz.

I wrote about the dangers of large income inequality before in How Equality is Driving Thriving. In that article I wrote about The Spirit Level: Why Greater Equality Makes Societies Stronger, a book by epidemiologists Richard Wilkinson and Kate Pickett.The research described in that book shows that many health-related and social problems are associated with the level of inequality of society.

Joseph Stigliz' book provides evidence from an economist's perspective of the dangers of great inequality in societies. The book shows how inequality in the USA has increased enormously over the last three decades. The price for this rice in inequality, as Stigliz shows, is high. Some of the consequences: lower economic growth, lower GDP, more political instability, a weakened economy, and a diminished sence of fairness and justice.

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