The social status competition associated with severe income inequality generates society-wide negative externalities across all income groups, but especially lower social classes:
- decreased lifespan
- decreased physical & mental health
- increased violence
- increased homicide
- increased teen pregnancy
- decreased social trust
- decreased social connection
See: The Spirit Level
Minimally coercive, maximally efficient solutions:
- Worker-owned & controlled corporations (The Ownership Solution)
- Steeply progressive consumption tax (Robert H. Frank, “A Remedy Worse Than the Disease“)