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Michael Magoon's avatar

Could it be that this is really more about Status rather than Inequality? We could reduce inequality to near zero, but people would still have differences based on social status within the group. People can also have high status and low income (in for example art, academia, etc).

I believe that people inherently desire status, that some people do more than others, that it is zero-sum, and it completely separate from income and wealth inequality. Fortunately, people can have high status in one domain and derive pleasure from it while being low status in all other domains. For example, a person who is a really good welder can derive status among his peers, while still being relatively low status in the rest of his life.

But since people are not comfortable being seen talking about their low status, they express it as a concern for inequality.

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Josh G's avatar

As a smell test, I wanted to look at immigration rates by country, and how that relates to gini coefficients and poverty rates, that might be a post for another day.

What I will say is that the gini and poverty rates are similar in that you basically have a global south that is both absolutely poor and unequal. So an analysis of those factors will not inform you of much, given that they are largely the same and it would be hard to tell the difference between them.

What I would say is that however you slice it, if you are an immigrant to a completely different culture and country, it stands to reason that you are lower on the social hierarchy. So why do they move to a new place even though they are stamped as an immigrant? I think it’s due to the absolute level of opportunity. Many middle class Americans could move to another country and live like a king, but the overwhelmingly majority choose to live boring middle-class lives that are just like everyone else.

So to me this indicates that for most of humanity, the billions that live in squalor - absolute wellbeing is more important to them. At a certain point of wealth it becomes less important and fitting into a wider social context becomes more important. I don’t know that this exactly means that inequality becomes more important, as Michael points out, it could be that a bunch of non-fungible social status related things become more important - given that social status is more scarce than income in developed countries, I think that’s particularly likely.

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