Inequality, Sustainability and the Greed Line: A Conceptual and Empirical Approach on Ecuador and Latin America

Abstract

This essay suggests a greed line which controls the maximum ethically and economically acceptable consumption level, beyond which, a partial redistribution of individual income can eliminate poverty and restitute the economy to its sustainable size. Current economic growth allows a consumption level well beyond our basic needs, however, large social inequalities inhibit at least 40% of the population from fulfilling their basic human needs, whereas, sumptuary consumption absorbs a significant part of the world product, and the size of the global economy has overtaken our planets replenishment capacity. The opulence line may be constant in a specific historical or national context, however, it is variable for different regional scales or time periods; its decreases as inequality or poverty increase, or as unsustainable global economic growth in-creases; finally, it increases as growth becomes more sustainable or equitable.