In this article I want to break down some key concepts about wealth and income distribution utilising concepts from thermodynamics and entropy to show how gamed current economies and societies are and, more importantly, how we can undertake long term policy changes to fix it.
The G20 recently released the Global Inequality Report,1commissioned by the G20 South Africa Presidency in November 2025 and led by Joseph E. Stiglitz. It characterises global inequality as an “emergency” and a “policy choice,” asserting that the negative trends can be reversed. The report finds that 83% of countries globally exhibit high income inequality encompassing 90% of the world’s population. This crisis is primarily driven by wealth concentration, which is far higher than income inequality.
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