The simplistic view of wealth inequality is that it could lead to a violent “socialist” revolution. Maybe. . .
But what obscene inequality actually does is nourish the kinds of ignorance, helplessness, and apathy that breed insane conspiracy theories and brutally clownish demagogues as people lose faith in effort, learning, politics, community, government, altruism, and democracy. On a purely economic front, extreme wealth inequality is a primary cause of both cyclical instability and secular stagnation since lack of disposable income is equivalent to anemic “demand”.
It’s a vicious cycle which nearly crushed our nation before. Though it took World Wars and a Great Depression, we were once able to briefly support a regime based on recovery, reform, and redistribution that sparked a generation of prosperity for most people living in advanced economies while improving living conditions nearly globally. It was called “The New Deal” here and “Democratic Socialism” in Western Europe. Still hated by “malefactors of great wealth” it offers an inspiring example to follow and surpass - if we only have the will and the courage.
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