1.Children's prospects of earning depend more on their parents income than their own performance.
2.Tricke down theory fails to benifit those who are at middle and lower levels. Most of the benefits in a trickle down economy usurped by upper section.
3.Those who are benefitted most usurp all or most benefits, their children get important positions but their own contribution to the society are significantly non existential.
4.There are two ways to earn more wealth. One is to increase the pie and get more share from the pie.
The second way is not to increase the size of pie, rather usurp the larger share from pie, making the pie itself smaller. In this way the country's overall wealth is not increased but by usurping the the larger share from the the existing wealth some are benefitted more than others at the expense of the earning of wealth by the most people. Thus most people's wealth declines as more and more wealth shifts from the people to a few upper section people.
5.As the overall pie doesn't increase the growth slows down.
6.When there is more inequality most people are listed from the system of talent creation and so the society is left with fewer talents. This makes growth slower again.
7.When inequality is high the upper people get more tax concession. They earn more but pay lesser taxes whearas those who earn less, pay more taxes. This perpetuates inequality more on the one hand and on the other hand place less resources for growth. Thus again growth slows down.
8.When less resources are at the disposal of the govt there is less investment in common good activities like education, health, scientific research, public infrastructure and their comparative backwardness leads to more slower growth.
9. When inequality grows it benefits upper section and that section in tern tries to fund such government which can protect it's interests. If a more democratic govt cones that may be concerned with the plight of middle and lower sections and may go for redistribution. Hence to prevent this to occur upper section works for a government which is less democratic, more autocratic in favour of upper section, and which promotes crony capitalism's govt.
10. As inequality grows wealth is more concentrated in a fewer hands and income of most of the people falls. Resources move from majority to minority . Hence demand declines. As demand declines production slumps. And ultimately recession rules.
11.Democracy is designed by laws and rules made which shape politics in democracy. Laws and rules are made in such a way that they favour the interests of upper section. For example in India there is law of electoral bond. Provisions have been so made that there is a guarantee of opacity in the law contrary to law of transparency as required in democracy. This is so because this serves the interests of crony capitalists and their cozy bed partner power structure. This goes against the interests of common people and affects judicial system also.
12.This creates a downward vicious circle. Economic inequality leads to inequality of political power and unequal political power feeds economic inequality by making unequal laws and regulations.
13.This vicious cycle ensures perpetuation of all sorts of inequality. Consequence is that of creation of disillusioned citizenry. Citizens think the democracy is useless. They feel nothing is going to change by their votes. This leads to fall in participation in democracy.
14.This disillusion has more tentacles. Some move towards far left extremism and some to far right extremism. Violence is restored to eradicate inequality and inequality fed disadvantages. This also leads to emergence of false promising populism. And idea of some strong leader grows. Strong leaders do nothing but usurp power more strongly and more inequality is generated.
15.This also increases role of money and muscle in politics. As people get disillusioned at the time of elections money is used to lure those who don't want to vote . Money is used to win the votes of those who are supposed to support those who give money. And those who are thought to be antagonists are threatened not to vote. Voting remains not in the domain of voters. Rather a voter's choice to vote and to vote for a particular party goes to those small groups who control money and muscle that is those who are in the upper section. Thus votes of common people who are disillusioned due to inequality again becomes captive of those who are perpetuators of inequality.
