Social stratification through income inequality leads to problematic first order effects... - skewed political bargaining power - skewed economic bargaining pow

Social stratification through income inequality leads to problematic first order effects... - skewed political bargaining power - skewed economic bargaining power Not to mention second order effects: - regulatory capture - debt inflation - reduced aggregate demand - privatization and bureacratization - increased propaganda - "commodification" of spheres poorly handled by markets - lower levels of entrepreneurial activity - less fundamental research from public funding - long waiting times for public services - increased costs and inflation from privatized energy production - less traffic mobility for low incomes from privatised public transit - housing market bubbles - less independent press from reductions in public funding Or third order effects... - social unrest - lower reproduction rates - higher levels of job competition - recessions - populism and extremism - geopolitical unrest - less political participation Also, nation states are not income constrained, so stating taxes are used for state income is factually incorrect.