population in which everyone has exactly the same income has a coefficient of 0.0, and a population in which only one individual earns all the income has a coefficient of 1.0. The Ginis of the world’s twenty wealthiest nations range from 0.25 (Sweden) to 0.41 (United States). The list of the highest-Gini nations fails to impress: Namibia, 0.74; Botswana, 0.63; Bolivia, 0.60; and Paraguay, 0.58.26 More systematic research strongly suggests that increasing inequality produces social and political instability, which in turn leads to decreased investment and decreased economic development.
