Yes, the growing gap between rich and poor is hurting society as a whole worldwide. According to the annual World Inequality Report, the super-rich have increased their share of global wealth in record time. While the fortunes of billionaires have increased by several trillion, another hundred million people worldwide have slipped into extreme poverty.
Growing inequality gives a small group of people more and more political influence and can lead to social tensions. Social inequality thus also poses a threat to democracy and social peace. Not only political stability can be threatened by social inequality, but also economic growth. Too high a level of social inequality is bad for individuals‘ willingness to perform and take risks.
To counteract the growing gap between rich and poor, the researchers call for „moderate and progressive“ taxation starting at $1 million.