In a free society, wealth inevitably grows unequally.
That's because:
a. some people produce goods and services that are in greater demand than others
b. given the freedom to spend their money as they see fit, people will spend their money for the services they value the most
For example, the number of people who want to see LeBron James play basketball far outstrips the number of people who want to see Caitlin Clark play basketball. The wealth of LeBron James will therefore grow much faster than the wealth of Caitlin Clark.
But that doesn't mean the wealth of LeBron James comes at the expense of Caitlin Clark. If LeBron James retired, most of his fans would not suddenly buy Caitlin Clark tickets (and vice versa). The wealth of both can grow simultaneously.
And the same principle applies more broadly--the median wealth per capita in the US has grown substantially over time, even though the wealth of some people has grown faster than others.
Now, to be sure, some wealthy people gain their fortunes unethically, such as by lobbying the government for subsidies or regulatory moats. We should work to stop this immoral behavior.
And some people also lose wealth to disease, accidents, bad investments, and drug abuse, to name a few. We should try to help those people, especially those who are impoverished through no fault of their own.
But we should not let efforts to try to reduce inequality, rentseeking, and poverty destroy the underlying conditions that foster wealth creation in the first place: private property rights, free trade, and free speech, to name a few.
That's because:
a. some people produce goods and services that are in greater demand than others
b. given the freedom to spend their money as they see fit, people will spend their money for the services they value the most
For example, the number of people who want to see LeBron James play basketball far outstrips the number of people who want to see Caitlin Clark play basketball. The wealth of LeBron James will therefore grow much faster than the wealth of Caitlin Clark.
But that doesn't mean the wealth of LeBron James comes at the expense of Caitlin Clark. If LeBron James retired, most of his fans would not suddenly buy Caitlin Clark tickets (and vice versa). The wealth of both can grow simultaneously.
And the same principle applies more broadly--the median wealth per capita in the US has grown substantially over time, even though the wealth of some people has grown faster than others.
Now, to be sure, some wealthy people gain their fortunes unethically, such as by lobbying the government for subsidies or regulatory moats. We should work to stop this immoral behavior.
And some people also lose wealth to disease, accidents, bad investments, and drug abuse, to name a few. We should try to help those people, especially those who are impoverished through no fault of their own.
But we should not let efforts to try to reduce inequality, rentseeking, and poverty destroy the underlying conditions that foster wealth creation in the first place: private property rights, free trade, and free speech, to name a few.