Necessary for the function because it creates incentives to work hard and take risks. Left entirely to his own, the market system will produce more inequality in this economically necessary. Here in our country, we have much more inequality than is necessary for efficiency. I believe this is a moral problem from the standpoint of social equity. But excessive inequality not only undermines social and political cohesion, it is also recently been shown to have negative effects on growth and stability as well. Recent research at the imf has shown that excessive inequality slows growth, costa pricetoearnings gemelli to weaker demand and lower section. Reducing inequality is increasingly understood to contribute to Economic Growth. Inequality is also a political problem. We now have an increasing degree of resistance on the part of Many Americans to new trade agreements because they see themselves as the dems of globalization resident as participants benefit. I believe our International Econ