2024/05/22 by Takeshi Kato, Kato, Takeshi, Tanabe, Yosuke +1
Social Sciences · #91B24 #91B43 #91B55 #91B64 #FOS: Computer and information sciences #FOS: Economics and business #FOS: Physical sciences #General Economics (econ.GN) #J.4 #Multiagent Systems (cs.MA) #Physics and Society (physics.soc-ph) #Russia and Soviet political economy
paper · pdf · doi:10.48550/arxiv.2405.13341
openalex publication_date 2024/05/22 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Reducing wealth inequality and increasing utility are critical issues. This study reveals the effects of redistribution and consumption morals on wealth inequality and utility. To this end, we present a novel approach that couples the dynamic model of capital, consumption, and utility in macroeconomics with the interaction model of joint business and redistribution in econophysics. With this approach, we calculate the capital (wealth), the utility based on consumption, and the Gini index of these inequality using redistribution and consumption thresholds as moral parameters. The results show that: under-redistribution and waste exacerbate inequality; conversely, over-redistribution and stinginess reduce utility; and a balanced moderate moral leads to achieve both reduced inequality and increased utility. These findings provide renewed economic and numerical support for the moral importance known from philosophy, anthropology, and religion. The revival of redistribution and consumption morals should promote the transformation to a human mutual-aid economy, as indicated by philosopher and anthropologist, instead of the capitalist economy that has produced the current inequality. The practical challenge is to implement bottom-up social business, on a foothold of worker coops and platform cooperatives as a community against the state and the market, with moral consensus and its operation.