Competition Migrates to Political Power

When markets are constrained or made less salient, people still compete but redirect effort toward political, bureaucratic, or social‑gatekeeping channels (licenses, party rank, planner access). This creates hidden hierarchies of power that are less visible than income differences but can be far larger in impact and harder to check. — Policy reforms that flatten economic inequality can unintentionally concentrate decision‑making power in administrative or political institutions, producing new forms of extraction and rent‑seeking.