We have good evidence that increasing inequality leads to lower trust.Functional societies are based on trust.
Trust is why the Big Lie works. People refuse to believe that their leaders are lying to them.
But it only works for a while. And when enough people lose trust in leaders, then disfunctionality increases proportionately as cooperation and engagement decline. The end-result is non-participation or revolt.
Stumbling and Mumbling
Inequality, trust & politics
Chris Dillow | Investors Chronicle