The Middle Class Joins the Game
Abstract
Political pressure for redistributive policies comes not only from the poor but from the middle class as well. The increase in political power in some intermediate income segments could induce a movement in the direction of dismantling privileges created for the rich or to restrict policies in favor of the poor. However, in the presence of significant inequality, it is difficult for society to come to a consensus regarding reforms that, if approved, would dismantle privileges and benefit the majority. Given this impossibility, the rational strategy for each group is to demand more benefits for themselves. As such, the tendency is for the distributive conflict to increase over time. Many government ...
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