The IncomeGini of Fairness

Abstract

We are in favor of wealth accumulation in a free and democratic nation. Yet, the question is whether the mechanism of wealth accumulation is the same to all the people or are there di®erent mechanisms to di®erent socioeconomic-groups, therefore unfair biases in the nation. Here, we would like to develop ways to quantify and¯ght there unfair distortions. Utilizing methods from socioecono-physics, we¯nd that in a democratic and a free nation, a fair society is such that the income distribution's Gini is in the range, 25% and 33%, 34%. (Gini is the departure of the distribution from the \all are equal" distribution). The value, Gini % 40%, is indeed the transition from the intermediate stage nation to the corrupt nation, where Gini 40% requires that the income distribution is smooth in the top percentiles (rather than a jump like formed). Therefore, the e®ect of the 0.1% excessive wealth is pivotal to the problem; such nations have Gini values beyond 40%. The wealth distribution's properties further strengthen these¯ndings.We develop a dynamical model that is emphasizing the di®erence in the environment of the two camps: the top and the rest, yet¯nd that interactions create a smoother income density.We therefore think that the income distribution's Gini % 40% is the alarm stage, yet the Gini should better follow the middle range of the fair society stage (25% through 33%) rather than the upper bound in that stage, where ways to realize that are elaborated on.

From the Physiocrats to Fairness in Nations

“…In the case where % 2, the Gini is in the 40% area, again showing that Gini % 40% is the transition from fairness to corruption since that is also the value where the°u ctuations in the income density are¯nite 77 (see the next Fig. 3).…”

“…In relation, the LotkaVoltera model in ecology [82][83][84][85] is of great value in biophysical economics. 76,77 We will provide relevant examples. The model is viewed among the most signi¯cant models from mathematical biology to appear in socio-econo-physics.…”

“…The Gini of fairness is 40%. 77 It means that the nation is (explicitly or implicitly) corrupt beyond that. To create the density f, we should¯rst generate and develop the model.…”

“…Many models exist yet we present here the fðcÞ structure that is based on the type that is derived from the \society-deciders" model. 77 The model is showing how valuable is the strength of interactions in creating smoother fðcÞ, and resulting in better (fairer) societies.…”

“…[96][97][98][99][100][101]138 From Ref. 77, we present a dynamic equation to the density with two groups, where the whole society is de¯ned as two parts, the \society" and \deciders". SC stands for the society group and DC for the deciders.…”