Is there such a thing as too much inequality if that inequality is the result of free-market forces and individual differences in effort and talent?
I think there can be too much inequality even if it is the result of free-market forces and individual differences in effort and talent. We assume that the market is perfect but in reality, the market is not perfect and there can be market failures because of which the market equilibrium may be different from the socially optimum outcome. Also, the market does not provide a level playing field for all due to the differences in privileges of different people. Therefore, the income distribution decided by the market forces may be too unequal.
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