The Melting Away of North Atlantic Social Democracy
Plutocrats and their ideologues like to claim that too equal an income distribution destroys incentives to work and turns us into a “nation of takers.” But a return to the inequality levels of the 1960s would not turn us into Maoist China. In the relevant range of levels of inequality, it is much more likely that higher inequality will slow growth by depriving the non-rich of the resources to invest in themselves, their children, and their enterprises; It will further slow growth by focusing effort on helping the rich keep what they have at the cost of squelching the development of the new.
-J. Bradford Delong
You can’t build the new thing when you’re fighting for survival.