Responding to Professor Sir Angus Deaton’s report into the causes of inequality, economics writer Chris Dillow provides an excellent list of eight ways in which unequal societies sacrifice overall economic growth and national prosperity to preserve the fortunes of their elites.
Topping the list is the diversion of investment resources from innovative products and services into socially useless and inefficient "guard labor" (everything from surveillance to high walls to alarm systems to actual armed guards).
Beyond that, inequality produces an erosion of the trust that is a precondition for growth; unequal access to education and opportunity which means that poor peoples' contributions to national wealth are never realized.
Continue reading
No comments:
Post a Comment