Another Divider: Class

Another Divider: Class

19 September 2025

Another powerful divider in society is class: the upper classes or capitalists, the middle class, and the lower classes or workers. Inequality between these groups can be minor or extreme, and economists often measure it with the Gini coefficient. The higher the number, the greater the gap.

In most societies, the lower classes often face significant barriers to accessing the same opportunities, wealth, and privileges as the higher classes. Mobility is limited, and the “glass ceiling” becomes real. For instance, in Scandinavia, where Gini coefficients are relatively low (around 0.27–0.30), the middle and lower classes still have access to good education, healthcare, and opportunities for upward mobility. By contrast, in much of Latin America, where Gini coefficients hover around 0.45–0.50, the wealth gap remains wide, and the poor struggle to move up the social ladder.

And yet, there is a decisive difference in how elites behave. As Why Nations Fail argues, when elites act inclusively—by investing, creating jobs, and opening doors for others—the whole nation rises. But when elites act extractively—hoarding wealth, blocking opportunities, and exploiting others—the poor grow poorer, and the country sinks deeper into stagnation.

Class, then, is not just about who has more or less. It is about the mindset of those at the top. Inclusive elites can turn class into a ladder. Extractive elites turn it into a wall.

Miguel Goede