Under U.S. Army supervision, both countries undertook a massive redistribution of land and related resources as a way to equalize economic opportunity, thereby retarding the spread of Communist sympathy among the poor and reducing the potential for future war-making by either country. Most economic historians credit this redistribution of wealth in Japan and Korea with helping to set the stage for the rapid economic growth that followed. Social and political conflict that often accompany income inequality prompt government policies that can cramp growth. Worker anxiety about job and benefit losses have fueled policies that wrongly blame immigrants, petty criminals and welfare recipients for their ills. As a result, these under-utilized human resources are threatened rather than cultivated as potential economic resources.
High inequality tends to increase the expenses of protecting private property and enforcing the law.
Finally, highly unequal societies such as the United States suffer significant economic productivity loss when large portions of the population have reduced access to health care, training and higher education. The statistics are clear. Inequality is on the rise, and it carries economic costs. There are inescapable ethical considerations that demand action against this trend. But even for a business world not always motivated by such considerations, it is becoming clearer that everyone would be better off if equity became a higher social priority.