Oxfam reports that the richest 26 billionaires currently
own $1.4 trillion, which is as much as 3.8 billion of the world’s poorest
people. So a couple dozen have as much as half of humanity. Interestingly, only liberals, progressives, and socialists are horrified
by such vast economic inequality, whereas conservatives and libertarians are
more inclined to celebrate it. Why is that so?
The Injustice of Staggering Economic Inequality
You’d think one of the more obvious objections to the
inequality would be just as compelling to those on the right as to those on the
left. The objection is just that no one ever earns
billions of dollars, so the inequality is always actually unjust. Granted,
I can conceive of a world in which someone deserves billions of dollars whereas
most other people deserve to be poor. Suppose someone invents the cure for
cancer all by himself, having relied on help neither from the government nor
from colleagues or from Lady Luck (such as from having inherited genes that
make this inventor a genius), and suppose that the cure goes on singlehandedly
to change the world for the better for centuries. Suppose also that most other
people accomplish nothing of comparable significance. In that case, because of
the colossal difference in the achievements, the inventor might deserve to live
as a god while the majority should only languish until they die.
Notice, though, that even in this imaginary scenario, we run
up against the contradiction that no one who would invent the cure for cancer
and distribute it to humanity’s benefit (by selling it at an affordable price)
would choose to horde those billions of dollars rather than use them to further
aid the very people he meant to serve with the cure. Only if keeping the wealth
were needed to fund additional breakthroughs could we imagine the genius
choosing to keep his wealth, although even here the inequality would have to be
temporary since the additional breakthroughs would eventually have to benefit
the rest of the world in such a way that the masses are dragged out of poverty.
For suppose this genius invents only inconsequential advances that don’t affect
the quality of life of most of the world’s population. Suppose that after
curing cancer, he creates only the equivalents of fidget spinners. Then we’d be
right to think the genius has squandered his wealth and no longer deserves it,
that his wealth has corrupted him so that he’s no longer interested in
substantially improving the world. The scenario would no longer be incoherent
only because the genius’ character would have shifted from being heroic to
parasitic.
In any case, in the real world there’s never such stark,
asymmetric heroism, contrary to egotists like Ayn Rand. Wealth is either old or
new, as they say, meaning it’s inherited or personally acquired. If it’s old, the wealth is tainted by the
palpable injustices perpetrated in the less progressive past. For example,
George W. Bush’s family money derives in part from his grandfather’s connection
to a German banker, Fritz Thyssen, who helped Hitler rise to power. Men’s old
money generally is attributable to patriarchal advantages, and white men’s to
past imperialism and slave-holding from Europe.
If the wealthy raise themselves from having no money to having billions of dollars, that wealth is bound to be
acquired immorally even when no laws
are broken. Two frequent immoralities stand out: the fraud inherent in the
propaganda that sells most products and the devastation of the biosphere caused
by most business practices. Beyond those two, there’s the monopolist’s dynamic
whereby the rising company lies or undercuts competitors to gain an edge that
puts the rivals out of business (typically by resorting to slave labour),
whereupon the monopolist exploits the situation by lowering the quality of its
products and gouging the consumers. See, for example, Walmart and Amazon. This
kind of wealth is obtained by a war of attrition, and because the motive isn’t
saintly (as it’s supposed to be in the above thought experiment), if the scheme
works, the dominance corrupts the executives and the shareholders, leading to a
degenerative system rather than elevating the living standard.