From 2004: Geese, Golden Eggs, and Traps.

The article "Geese, Golden Eggs, and Traps" discusses the relationship between equality and economic growth. It argues that equality can boost growth in several ways, such as increasing agricultural productivity and promoting match effects, where well-educated individuals are more productive when working with others who have similar levels of education. The article also highlights the importance of pressure effects, which drive economic elites to invest in productivity-enhancing opportunities rather than exploiting the poor. However, the rich often resist redistribution due to the tradeoff they face between giving up wealth and gaining a share of increased growth. The article warns that excessive inequality can lead to an "inequality trap," where the wealthy restrict democracy and hinder investments in education, resulting in slower growth and stagnation. The article concludes by acknowledging that while evidence supports the positive impact of equality on growth, policy decisions are primarily driven by politics rather than evidence. [Extracted from the article]

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