The Great Leveler

Does progress always come at a cost? The history of inequality suggests we pay a steep price for fairness.

1. Inequality began with settled societies and surplus

The end of the last ice age, around 11,700 years ago, marked the beginning of a stable climate period known as the Holocene. During this time, humans in regions like the Middle East transitioned from being hunter-gatherers to agriculturalists, settling on land and cultivating food. This shift led to food surpluses, which enabled some to accumulate more resources than others.

Early hunter-gatherer groups practiced egalitarianism, where resources and power were shared among members of the community. In contrast, the new sedentary lifestyle based on agriculture introduced property ownership and sharp class divisions. Archaeological evidence from 11,000 years ago reveals the differences in household sizes and diets, with wealthier homes enjoying larger fish while poorer ones managed with smaller catches.

Even isolated societies with little outside influence were not immune. For example, when the Chumash tribe of California invented advanced canoes between AD 500-700, it centralized power in the hands of the men who controlled maritime trade and resources. This soon created a hierarchical social structure.

Examples

• Archeological digs in the Middle East reveal disparities in house sizes during the Holocene.
• Larger houses had access to big fish, showing dietary inequality.
• The Chumash tribe's new technology empowered male chiefs, leading to resource monopolization.

2. Communal land ownership once dominated, but elites seized control

Thousands of years ago, societies in places like Sumer and China distributed land communally. Men representing families in Sumer around 5,000 years ago worked cooperatively and shared the proceeds of farming equally. Similarly, early Chinese, Aztec, and Inca societies were unfamiliar with private land ownership.

However, this equality was fleeting. By 3000 BCE, Sumerian aristocrats, including the religious elite, began buying land and converting it into private property. Families who couldn’t repay their debts often sold their land or became enslaved by creditors. This process turned land ownership from a communal responsibility into a tool for the wealthy to consolidate power.

Socioeconomic imbalance deepened as landholders amassed wealth, leaving others dependent on them. Historical records describe similar transformations across various civilizations, where elites leveraged finance and governance to dominate resources.

Examples

• Sumerian priests and aristocrats privatized communal lands by 3000 BCE.
• Families burdened by high-interest loans lost their property and freedom.
• The Aztecs and Incas practiced property sharing before Spanish conquest upset their systems.

3. Collapse and disease have leveled inequality in the past

The pattern of reducing inequality through societal catastrophe has echoed across history. In Europe, the fall of the Roman Empire in the fifth century saw power and wealth dispersing after the political collapse dismantled elite privileges.

Another major equalizer was the Black Death in the 1300s. The plague killed millions, creating labor shortages and empowering surviving workers to demand higher wages. This closed the wage gap between Europe’s rich and poor, challenging the feudal lords who had previously wielded immense power over serfs.

Periods of stability, however, allowed inequality to rise again. Feudal Europe saw growing disparities between the land-owning nobility and the struggling serfs, a recurring theme when strong governments favored elites.

Examples

• The Roman Empire's fall disrupted the flow of riches to the elites.
• The Black Death more than doubled agricultural workers' wages in some areas.
• Feudal estates relied on serf labor, deepening wealth divides by the 1300s.

4. Japan’s inequality fell sharply after WWII

Japan was a dominant imperial power before its loss in WWII. By 1945, the war had devastated its infrastructure and economy. During this time, the government redirected wealth from the elites to fuel military efforts, stripping the upper class of much of their wealth.

Before the war, the wealthiest one percent controlled one-fifth of the nation’s resources. After redistribution and war losses, their share declined significantly. Half of elite wealth disappeared, resulting in a more balanced distribution across classes.

Similarly, inequality narrowed in war-torn nations like Germany and Great Britain, where heavy wartime taxes and economic restructuring redistributed wealth. Such drastic leveling came at great loss, illustrating the cost of redistributing resources during crises.

Examples

• The Japanese elite lost two-thirds of their wealth during WWII.
• Wartime demands shifted resources from profit-making businesses to the government.
• Postwar Europe also saw a realignment of income distribution due to government policies.

5. The Russian Revolution redistributed wealth violently

Civil conflicts can lead to significant shifts in resource and land ownership. In 1917, the Russian Revolution overthrew Czar Nicholas II’s government, and the Bolsheviks implemented sweeping changes, including banning private property.

Lenin’s Land Decree redistributed land to peasants while outlawing its sale or lease. The revolution targeted the wealthy aristocracy, stripping them of land and resources while enforcing collective farming. Though effective in reducing inequality, these measures were accompanied by violent purges, exile, and systemic oppression.

This marks another example where inequality was reduced at a steep cost, with thousands of nobles and wealthy citizens losing their livelihoods—and often their lives.

Examples

• Russian aristocrats lost all land and assets after 1917’s Land Decree.
• Private banking was prohibited during the revolution.
• Over 500,000 landowners were left destitute or executed.

6. Somalia improved after its government collapsed

Somalia’s reputation as a failed state belies an interesting reality. When its government fell in 1991, the nation suffered civil war and poverty. Yet, paradoxically, some aspects of life improved compared to the previous dictatorship.

Without centralized control, illegal taxation and corruption declined. Studies before 2006 indicated a drop in violence and an improvement in living standards compared to the Barre regime. The lack of government interference stifled elitist practices while empowering local groups to organize their lives.

However, reliable historical data on post-collapse Somalia is scarce, leaving its exact progress open to debate.

Examples

• Barre’s regime exploited citizens, plundering national resources.
• Researchers in 2005 found better living conditions in Somalia post-collapse.
• Areas governed by militias imposed less economic burden than corrupt officials.

7. Democracy hasn’t eliminated inequality

Democratic governance has been widely championed as a path toward fairer societies, but studies show no consistent connection between democracy and income equality. Research examining 184 democracies from 1960-2010 found unequal wealth distribution persisted in many cases.

This happens because influential interest groups often capture political agendas, favoring the rich over the majority. While democracy encourages growth, this prosperity benefits the elites significantly more than the workforce.

Left-wing governments show only marginal improvements. For instance, their influence on reducing the income shares of the richest citizens has been minimal compared to what might be expected.

Examples

• Researchers found no strong link between democracy and equal wealth.
• Wealthy interest groups influence many democratic systems to protect their assets.
• Leftist governments barely shifted income share from the top one percent.

8. Trade unions play a larger role in reducing inequality

When workers band together, they gain more negotiating power with employers. Historically, unions have helped workers secure higher wages and better conditions, narrowing wealth gaps between employers and employees.

Powerful union movements emerged during periods of extreme inequality, harnessing collective bargaining for change. However, in times of relative abundance, union influence and membership often decline, reducing their overall societal impact.

Real examples show the importance of labor coalition at both local and national levels to help bridge income divides.

Examples

• Unionized industries in the 20th century saw fairer wages across classes.
• Depressions typically fueled stronger pushes for worker’s rights.
• Declines in union membership correlated with growing inequality in modern economies.

9. Economic reforms are ideas still being tested

The book suggests economic policies now under academic discussion, like a universal basic income or higher taxes on the wealthy, could reduce inequality. British economist Anthony Atkinson has proposed measures such as child allowances, capital tax reforms, and stronger wage standards to narrow income gaps.

Yet, these policies face challenges, namely financial costs and resistance from beneficiaries of the status quo. Their feasibility can only be confirmed once implemented, and drastic shifts might still be needed to counter inequality without upheaval.

Despite uncertainty, such discussions represent steps toward actionable solutions.

Examples

• Atkinson’s plans feature wealth taxes and wage guarantees.
• European leaders also consider universal income experiments.
• Redistribution policies depend on public support and institutional willingness.

Takeaways

1. Support worker-led initiatives like unions to demand fairer wages and better conditions.
2. Advocate for small-scale experiments like universal income pilots in your community.
3. Educate yourself about local income disparities and engage in meaningful activism to combat them.