Extreme income inequality is that which causes economic instability and has a deleterious effect on most people.
Determining an acceptable level of income inequality is a moving target requiring lots of analysis of data and whatever but there exists such a point at which you could say that income inequality is untenable, just the same as there exists a point at which inflation is untenable.
The "acceptable" level of inflation is around 3%, but even inflation in the low double digits isn't necessarily unworkable. It's somewhat arbitrary and a comoplex policy decision, but it's fair to say that such a level of income inequality exists at which it becomes untenable (even if we don't know what it is).
Comments
Extreme income inequality is that which causes economic instability and has a deleterious effect on most people.
Determining an acceptable level of income inequality is a moving target requiring lots of analysis of data and whatever but there exists such a point at which you could say that income inequality is untenable, just the same as there exists a point at which inflation is untenable.
The "acceptable" level of inflation is around 3%, but even inflation in the low double digits isn't necessarily unworkable. It's somewhat arbitrary and a comoplex policy decision, but it's fair to say that such a level of income inequality exists at which it becomes untenable (even if we don't know what it is).