PLAGUE INTRODUCTION Seeking Optimal Inequality

... am reviewing the Plague of Inequality book by Williams (2024), a Princeton University Press book. Will be posting the Review by Chapter ... so, check back!

Review of Williams, David Lay. The Greatest of All Plagues: How Economic Inequality Shaped Political Thought from Plato to Marx.  Princeton, NJ:  Princeton University Press, 2024.

Introduction

The Review of Williams (2024) is guided by DIT (Dual Interest Theory) in Metaeconomics, as represented in Figures 1 and 2 (versions of which are also used in Lynne 2025).  The Review uses DIT to make better sense of  Williams (2024). DIT points to the need to seek Optimal Inequality. The Review is also, then, in effect a search for empirical evidence for DIT in the conversation and stories weaved in Williams (2024), as well as in clarifying the claims made by the Greatest Thinkers, in support of DIT. Keep in mind the notion of Single Interest Theory (SIT) of mainstream Microeconomics sees only the Econ on path 0G, while DIT sees the Human on path 0Z.  The Econ has no concern for the economic & social problems caused by Extreme Inequality.

In general, in DIT terms, the Plague of Extreme Inequality arises from the arrogance of self-interest only --- only the Incentive matters as SIT claims --- on path 0G in Figure 1, which is made ever worse as path 0G of the Econs moves closer to the vertical axis.  That is, Extreme Inequality reflects a situation where not enough empathy-based Ethic is in play, said Ethic represented on some shared other-interest path 0M. Optimal Inequality arises on some path 0Z  of the Humans --- balanced Humans --- where the empathy-based ethic about reasoned inequality in good balance with adequate incentive is resolved. Incentive & Ethic need to be in good balance on path 0Z, which is the claim of DIT.

Figures 1 and 2 are from Lynne (2025).

Notice that economic efficiency is impossible without addressing inequality, as in the Ethic of the reasonable inequality on path 0M needs to temper the Incentive for ignoring it on path 0G.  The Plague of Inequality is ever more severe as path 0G shifts toward the vertical axis.  The Plague can be dampened, tempered only with good balance in Incentive & Ethic on path 0Z. The Great Enrichment --- everyone having a piece of the economic action in a stable society arises on path 0Z, reaching point Bo in Figure 2 (see Lynne 2025).

As made clear in Lynne (2025), the Innovism pointed to by McCloskey in the 7-books on what led to the Great Enrichment since 1780 also needed attention to Optimal Inequality. Extreme Inequality on the way to the Plague of Inequality, if it had not been tempered, could never led to the Great Enrichment giving an increased in GDP(income)/capita/day from $3 in 1780 to $36 in 2023 (and to $224 in the US).

Williams (2024) looks to the concerns about Extreme Inequality of some of the best and greatest thinkers that every Traveled on the Spaceship Earth.  Williams (2024) includes Plato reflecting Socrates; Jesus (along with Peter, Paul, and brother James); Thomas Hobbes; Jean-Jacque Rousseau; Adam Smith; John Stuart Mill; and Karl Marx.  Each are considered in a Chapter: Each Chapter will be Reviewed, and Blog posted for each one.

Methodological framing here is to: 1) use DIT to help make better sense of empirical claims accorded to each of the thinkers by Williams (2024), seeing the content of conversation as empirical, and 2) use the empirical evidence on the effects of extreme inequality going all the way back to observations and claims by Plato, and Socrates, to test DIT.  3) seek support (or not) for the notion of Optimal Inequality to which DIT points as essential for truly stable, humane economic & social system.

The same methodology was used in the review of the 7-books by McCloskey all focused on explaining what actually led to Innovism (coined by McCloskey) on the way to helping ordinary people move out of poverty and up the income and wealth ladder (see Lynne 2025). An overview is provided here in the Blog. It is argued in the Lynne (2025) review that optimal inequality is key to Innovism.  The following confirms that DIT not only helps make better sense of the key role of optimal inequality, but that the contentions by great thinkers going back to Socrates saw it the same way.  All are MetaEcon.

References

Lynne, Gary D. “Cargo-Cult Economics to Metaeconomics:  Toward a Humanomics with a Theory.”  Review of Behavioral Economics 12, 3 (May 2025):  257-289. http://dx.doi.org/10.1561/105.00000212    See now publishers - Cargo-Cult Economics to Metaeconomics: Toward a Humanomics with a Theory    https://www.nowpublishers.com/article/Details/RBE-0212    

Williams, David Lay. The Greatest of All Plagues: How Economic Inequality Shaped Political Thought from Plato to Marx.  Princeton, NJ:  Princeton University Press, 2024.