When wealth inequity is huge, it causes social instability and eventually, revolution. Interesting. That sounds like it's a problem with poor people being angr

When wealth inequity is huge, it causes social instability and eventually, revolution. Interesting. That sounds like it's a problem with poor people being angry and violent, not with income inequality per se. It seems like spending money on the military and law enforcement would be a better investment than reducing income inequality under your scenario. And it makes sense, too--if people threaten violence, and you can afford to beat them, why pay tribute instead? It's not barbaric, but it does mean letting barbarians rule your society.