I think we can start with the work of Gary Stevenson. He made a few points on why inequality is bad.
When there’s massive inequality in the system, the super rich will compete with you for resources. Resources can include:
- Housing, of which fewer and fewer people could afford owning at the median income level
- Education, think buying access to spots at top schools and the ability to afford the fees/debt
- Political power, think Elon Musk in the western world
- Media/consensus, think Jeff Bezos, and think blaming of immigrants for house prices
- In the current tax system, the super rich could inherit wealth while paying very little tax, and they can borrow money at very low rates collaterized with the massive amounts of assets their own: meanwhile some of us pay a 30-50% tax on our income and are struggling to save for a downpayment or retirement.
With the massive financial power of the super rich, it’s not so much that this is bad in an “evil” way. Rather, it’s bad for the rest of us because the super rich are indifferent to us in pursuit of their own agendas in the “cosmic indifference” kind of way. Just as how we humans destroy anthills with an indifference if they get in the way of road constructions, the super rich would “run over” us if it benefits them.
When there’s massive inequality in the system, the super rich will compete with you for resources. Resources can include:
- Housing, of which fewer and fewer people could afford owning at the median income level
- Education, think buying access to spots at top schools and the ability to afford the fees/debt
- Political power, think Elon Musk in the western world
- Media/consensus, think Jeff Bezos, and think blaming of immigrants for house prices
- In the current tax system, the super rich could inherit wealth while paying very little tax, and they can borrow money at very low rates collaterized with the massive amounts of assets their own: meanwhile some of us pay a 30-50% tax on our income and are struggling to save for a downpayment or retirement.
With the massive financial power of the super rich, it’s not so much that this is bad in an “evil” way. Rather, it’s bad for the rest of us because the super rich are indifferent to us in pursuit of their own agendas in the “cosmic indifference” kind of way. Just as how we humans destroy anthills with an indifference if they get in the way of road constructions, the super rich would “run over” us if it benefits them.