Income inequality

(written by Lawrence Krubner, however indented passages are often quotes)

When I was in Berlin, I noted that there seemed to be less status competition, compared to the USA. Paul Krugman speaks of a “rat race” in America:

What Brad doesn’t say, but is also true, is that the status anxiety created by high inequality means that the rich-but-not-rich-enough often lead worse lives than their somewhat poorer counterparts did a few decades ago: they work longer hours, take fewer vacations, and spend more on things that don’t give them pleasure but that they hope will impress others.

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