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It is apparent that under these conditions, neither increasing the supply of M1 nor decreasing it (relative to M2) can effectively prevent an economic collapse. Therefore, it can be postulated that economic stratification itself ultimately results in economic collapse of one degree or another. An
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or levels are clearly manifest. While in any system individual members will have varying degrees of wealth, economic stratification typically refers to the condition where there are meaningful gaps between the wealth controlled by various groups, and few instances in the transitional regions.
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Many of these effects also act as causative factors. This induces progressively greater stratification unless action is taken to limit a runaway condition. Corruption of the feedback mechanism is the most dangerous threat to any balanced system, since it can lead to economic oscillations of
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effective legislative process can prolong the period between collapses, but since one of the effects of stratification is the degradation of this process, it becomes a self accelerating process.
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Social connectedness to people of higher income levels is a strong predictor of upward income mobility. However, data shows substantial social segregation correlating with economic income groups.
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refers to the condition within a society where social classes are separated, or stratified, along economic lines. Various economic
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increasing magnitude until runaway inflation or depression results. A historical example of runaway stratification is the
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Inequality and isolations : how economic stratification harms social capital [Thesis (Ph. D.)]
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gradually lost purchasing power until other factors, such as the bank failures, coincided to produce an
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Chetty, Raj; Jackson, Matthew O.; Kuchler, Theresa; Stroebel, Johannes; et al. (August 1, 2022).
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The effects that stratification produces in society as a whole can be significant. They include:
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in such systems becomes highly dependent upon continually increasing apparent quantities of
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Economic stratification should not be confused with the related concept,
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In extreme cases, the social fabric can break down and result in open
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Increasing corruption of judicial and legislative processes
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Dysfunctional handling of social and political changes
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Unequal distribution of resources (assets and income)
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