Why are people so het up about income inequality?
Effects of inequality researchers have found include higher rates of health and social problems, and lower rates of social goods, a lower level of economic utility in society from resources devoted on high-end consumption, and even a lower level of economic growth when human capital is neglected for high-end consumption. For the top 21 industrialised countries, counting each person equally, life expectancy is lower in more unequal countries.
Americans live no longer on average than Greeks or New Zealanders, though the USA has a higher GDP per capita. Life expectancy in Sweden and Japan – where income is more equally distributed – is longer.
Research has shown an inverse link between income inequality and social cohesion. Crime rate has also been shown to be correlated with inequality in society. *There have been over fifty studies showing tendencies for violence to be more common in societies where income differences are larger.
en.wikipedia.org/wiki/Economic_inequality All the above extracts are fully referenced.
Additionally, numerous analyses have shown that increasing income inequality shortens periods of economic growth, and greater equality shortens recessions. Those who lie back and murmur about cycles of contraction/expansion would do well to look into this - by permitting inequality to rise, we extend the length of time our economy will contract: by large measures, in most studies.
Hope this goes some way to explaining why people are het up, Carol.