Munger notes that many large law firms compensate senior partners equally, regardless of their individual contributions. This seemingly inefficient structure is a deliberate defense mechanism to prevent the powerful and destructive force of envy from creating disorder and tearing the firm apart.

In economic games, groups where members can punish others for not contributing to the collective good quickly establish strong cooperative norms and thrive. In contrast, groups without a punishment mechanism collapse as individuals act in their own self-interest, causing members to ultimately migrate to the more successful, punishing society.

Humans evolved to cooperate via reciprocity—sharing resources expecting future return. To prevent exploitation, we also evolved a strong instinct to identify and punish "freeloaders." This creates a fundamental tension with social welfare systems that can be perceived as enabling non-contribution.

A cross-cultural study shows that people are more likely to vote for a policy that hurts the rich, even if it also makes the poor's lives worse. This suggests that resentment toward the wealthy can be a stronger motivator in political decision-making than the desire to improve conditions for the poor.

The ability to print money creates inflation that widens the wealth gap. This hyper-inequality triggers a deep-seated, evolutionary psychological response against unfairness, which then manifests as widespread social unrest and societal breakdown.

Cross-cultural studies show a surprising voter motivation: punishing the wealthy is often a higher priority than improving conditions for the poor. People will support policies that harm everyone, including themselves, as long as they disproportionately harm the rich, revealing that envy can override self-interest.

Our anger towards hypocrisy stems from a perceived 'false signal.' A hypocrite gains status (respect, trust) without paying the cost of their claimed principles. This triggers our deep sense of injustice about an unfair exchange, making the violation about social standing more than just morality.

Human societies are not innately egalitarian; they are innately hierarchical. Egalitarianism emerged as a social technology in hunter-gatherer groups, using tools like gossip and ostracism to collectively suppress dominant 'alpha' individuals who threatened group cohesion.

The primary psychological driver behind socialist policies isn't altruism for the poor but a desire to penalize the wealthy. Understanding this distinction is key to predicting their political actions, as they will oppose policies that benefit everyone if they also benefit the rich.