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David Abbott's avatar

This article should be titled: wealth is hard to measure and silly measurement techniques yield silly conclusions.

The benefit of wealth is logarithmic (one can debate the appropriate base, eg 2 or 10).. A family’s second million dollars is much less useful than the first, and a family’s 11th million isn’t that important at all.

The faux “inequality” created by stock market swings would disappear upon adjustment for the logarithmic effect. This adjustment would also give proper weight to what happens in the middle and bottom of the labor market— having $5000 in your bank account is much better than having $500 and having $50k begins to confer a degree of independence.

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Marie Kennedy's avatar

I maintain the position I took a few weeks ago, which I think complements Matt's.... that wealth inequality itself is not ipso facto a moral atrocity. The moral issues have to do with the way we've both legally and culturally linked capital to personal dignity and access to things that really should be basic human rights (health care, housing, education, freedom from incarceration, etc). There's something in here about "class" in the way Scott Alexander depicted it... class isn't your income bracket or wealth, it's your social status, the deference your wants and needs are given by others, heavily influenced by your wealth in our culture but really a function of all sorts of personal characteristics, both innate and influenceable. Wealth gives you more influence over the characteristics that increase your social status (degrees, fancy clothes, Substack subscriptions that help you sound smart), which in turn gives you more influence over your outcomes in life and the outcomes of people and causes you care about. People with less access to capital often struggle to secure the basics like housing, health care, education, effective legal protections--never mind Beamers and Substacks. The cultural association of wealth to social status to human dignity is the first moral problem. The close second (or arguably bigger) one is gatekeeping access to the basics with a price tag higher than many can afford. Raw wealth redistribution is not the worst idea, but it's also not the only way or the best way to address the problems we really care about. We could start by questioning whether a college degree is really a job requirement as often as we claim it is, for example.

That being said, I'm not sold on government owned housing for all. Sounds rather Soviet to me. "Capitalism is the worst economic system except for all the others that have been tried" and all that. But Matt has convinced me of contrarian ideas before!

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