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Income inequality is more common in corrupt very low taxing nations ruled by militaristic dictatorships.
When taxes are at the right rate: society as a whole is better off and government budgets are balanced. Public infrastructure requires taxes to build and maintain. More services that benefit the whole society can be provided when the government raises appropriate taxes. There is a huge difference living in a western world nation compared to a developing/third world nation.

There will always be income inequality in all societies due to the laws, rules and regulations that allow the big corporations to gain more market control and power. People do not like to freely distribute their wealth, taxes must be raised by governments to provide law & order, military, police and public infrastructure/government services.

Money is a human illusion. Money is created by Federal Reserves out of thin air and is put in to circulation by the Fed Reserve Bank. The value of money depreciates over time due to inflation.