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Lesson 10 min 20 XP

Consequences of Inequality

What happens when the gap grows too wide — health, social mobility, democracy, and economic growth.

When the Gap Gets Too Wide

Inequality is not just an abstract number — it has measurable effects on nearly every aspect of society.

Health: The epidemiologists Richard Wilkinson and Kate Pickett showed in 'The Spirit Level' that more unequal societies have worse health outcomes — higher rates of mental illness, drug abuse, obesity, infant mortality, and lower life expectancy — even controlling for overall wealth. The stress of relative deprivation has biological effects.

Social mobility: High inequality tends to reduce social mobility. The 'Great Gatsby Curve' shows that countries with higher inequality also have lower intergenerational mobility — meaning your parents' income is a stronger predictor of your own. The American Dream of upward mobility is now more achievable in Denmark than in the United States.

Democracy: Extreme wealth translates into political power through campaign donations, lobbying, media ownership, and the revolving door between government and business. Political scientists have found that US policy outcomes correlate strongly with the preferences of the wealthy and hardly at all with those of average citizens.

Economic growth: The IMF and OECD have found that high inequality actually reduces economic growth by limiting human capital development, reducing consumer demand, and increasing social instability.