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NickS (WA)'s avatar

"But wealth is not the problem—poverty is—and we need to stop pairing them together as if wealth is the cause of poverty."

Yes, in theory, but in practice, I don't know that you can completely separate them . . . I think it's an empirical question.

I don't claim to have the answer, but I do think that even if the Oxfam framing is an oversimplification, it's worth paying attention to some of the research that suggests dangers of increasing inequality (even if poverty is decreasing).

I find _The Spirit Level_ findings that greater inequality contributes to worse social outcomes (on a number of metrics) interesting. They don't demonstrate a cause, but there a number of correlations: https://equalitytrust.org.uk/sites/default/files/SpiritLevel-jpg_0.pdf

There's some evidence that high amounts of inherited wealth make society less dynamic: https://www.vox.com/2024/1/22/24043104/billionaire-get-rich-people-parents-generational-wealth-transfer-trust-fund

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Economic research shows that high wealth inequality coincides with lower intergenerational mobility, meaning the presence of a lot of really rich people goes hand in hand with ordinary people struggling to do better financially than their parents did — an observation dubbed the Great Gatsby Curve. According to research by City University of New York economist Miles Corak, wealth chasms make it more likely for “family background to play a stronger role” in determining your success in adulthood, with your “own hard work playing a commensurately weaker role.”

For all that America is championed as a land of opportunities and bootstraps, the hundreds of billionaires that have popped up here since the ’80s may actually mean your hustle and grind matter less today.

According to economist Salvatore Morelli, director of the GC Wealth Project, the US once had a relatively low incidence of inheritance compared to other developed countries, but it has started to shift to a “European level” of inheritance. The gap between the haves and have-nots shapes “the opportunity and the chances that people start with in their life,” he tells Vox. Examples of unequal opportunities include things like education: You might have the grades to attend an Ivy League school, but if someone’s parent is a billionaire who can outspend yours to hire the most expensive college consultants and even make a generous donation to the school, that heir may just snatch your spot. With an exploding number of ultrarich families in the US, the bar for having a chance at financial success — even a slim chance — keeps getting raised.

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Y. Andropov's avatar

"That some should be rich, shows that others may become rich. Let not him who is houseless pull down the house of another; but let him build one for himself." --A. Lincoln, 1864

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