In "The Price of Inequality," Joseph E. Stiglitz argues that significant disparities in economic opportunities between different groups can lead to limited interactions among them. When one group remains impoverished compared to others, it is likely to develop its unique cultural identity due to isolation. This separation can perpetuate stereotypes and misconceptions about the poorer group, reinforcing societal divides.

Stiglitz emphasizes that such dynamics not only hinder social cohesion but also contribute to the persistence of harmful beliefs regarding inherent differences among socioeconomic groups. This situation creates a cycle where inequality breeds cultural divergence, making it difficult to bridge the gap between groups and ultimately harming society as a whole.