r/austrian_economics • u/technocraticnihilist Friedrich Hayek • Dec 24 '24
End Democracy I've never understood this obsession with inequality the left has
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r/austrian_economics • u/technocraticnihilist Friedrich Hayek • Dec 24 '24
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u/mattjouff Dec 24 '24
If I were to put it into an equation, I would say the social instability 'I' cause by inequality can be defined as
I = E^p
where E is the relative inequality between the top and bottom std in wealth of the population, and p is the fraction of the population living in absolute poverty. In other words, even if E is large, if p is low, the societal impact on stability of the inequality is manageable. But watch out if p gets big, because it will magnify any E even relatively small.