Inequality


 * Measure inequality as the median/mean ratio (how far the median is from the mean)
 * Unegalitarian equilibrium possible?
 * For the argument that modern capitalist have to rely on human capital for their profits, see Das Human-Kapital: A Theory of the Demise of the Class Structure

Inequality's effect on growth

 * Is inequality harming growth?
 * Inequality and Economic Growth: The Perspective of the New Growth Theories
 * Economic Inequality and Its Socioeconomic Impact
 * World development report 2006: Equity and development
 * In democracies, social inequality leads to lower growth
 * Assuming that growth is entirely driven by the savings of the rich, while poor households consume their income, a redistributive system that taxes savers ( the rich) in favor of the consumers (the poor) will lower the growth rate (p. 555)
 * Savings from the upper income groups appear generally less sensitive to business cycles and follow different investment routes. Upper income savings are mainly made through dividends while individuals in lower income groups save through interest-bearing assets or equities in small businesses (p. 558)
 * Higher inequality at the top end of the distribution may promote economic growth, as it boosts the overall level of savings available for investment (p. 558)
 * Hence, most of the positive mechanisms can be linked to inequality at the top end of the distribution while many of the detrimental effects can be traced to bottom-end inequality, or to high overall inequality. (p. 569)

Inequality & instability

 * Income distribution, political instability, and investment

Inequality & political power

 * Check Tom Ferguson