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Tim Helm's avatar

I think you would enjoy reading Henry George, or indeed any account of the role of land in wealth distribution from Adam Smith, David Ricardo and JS Mill onwards.

Widening wealth inequality is in part due to policy. Private ownership of land rent is a policy decision - the state enforces exclusive title and does not socialise rent.

There are working alternatives. Most indigenous cultures have collective ownership. Some modern societies have melded the best attributes of collective ownership and private incentives.

Many of those at the top of your mountain got there by inheriting their parents' position halfway up or by the dumb luck of rising land values. Many of those at the bottom found themselves there because the state put them there at the behest of those at the top (this is called exclusive title).

Redistribution to narrow inequality is possible without dulling incentives. 

Singapore has 90% home ownership and very equal opportunity by global standards. It is also one of the world's most prosperous countries despite having no natural resource endowment. It did this by socialising the growing value of urban land to pay for universal housing access and a well-functioning state while keeping taxes on productive activity low.

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John Graham's avatar

To put it more edgily, what if wealth is no longer a mountain, but a Sky Tower where the most money is to be made by setting fire to the elevators.

"The deros will be with us always" (to read incredibly uncharitably) is an amazing explanation for inequality, but is it inevitable that the handful of technogarchs kissing Trump's inaugural ring have as much as half of America and thereby get to further their projects of enshittifying their produccts (and thus society) simply because enshittifying is more profitable than improving?

If the wealthy are risk-takers it's in a theoretical, statistical sense rather than a material one - governments are pretty well disciplined to deliver "investor certainty" after all.

Yes I do feel better for having got that off my chest, thanks for asking.

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