milo hobgoblin
New member
"Political economy explains some of the benefits from having a homogeneous population within a given state. If diversity is great - measured say by the inequality in potential earnings - then there is a strong incentive for people to spend their energies in efforts to redistribute income rather than to produce goods. In particular, a greater dispersion of constituent characteristics leads to the creation of interest groups that spend their time lobbying the central government to redistribute resources in their favor."

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