Wealth disparity also causes inflation - because wealthy people can and do drive up prices on goods, sometimes buying up whole markets/products. On top of this, they like to avoid taxes. Taxation being deflationary because taxes take money out of circulation, so uber wealthy people can completely, and enmass buy up select materials/property driving prices up (see the price of graphics cards and memory during the AI boom), and they halt the deflationary effects of taxation by avoiding taxes…
…and the wealthy are also likely to corrupt politics, skewing results in their favour - often shifting burdens onto the poorer classes or otherwise worsening conditions for the rest of us.
Basically: large wealth disparities are bad for the economy, bad for society in general, and bad for democracy, fairness, justice, and equality.
Wealth disparity also causes inflation - because wealthy people can and do drive up prices on goods, sometimes buying up whole markets/products. On top of this, they like to avoid taxes. Taxation being deflationary because taxes take money out of circulation, so uber wealthy people can completely, and enmass buy up select materials/property driving prices up (see the price of graphics cards and memory during the AI boom), and they halt the deflationary effects of taxation by avoiding taxes…
…and the wealthy are also likely to corrupt politics, skewing results in their favour - often shifting burdens onto the poorer classes or otherwise worsening conditions for the rest of us.
Basically: large wealth disparities are bad for the economy, bad for society in general, and bad for democracy, fairness, justice, and equality.