In the United States and throughout the world, income inequality is growing. While some degree of inequality is inevitable and even beneficial, inequality for reasons unrelated to personal merit is often problematic. In one example, investors do not share the same opportunities. The rich have many more options to build wealth than the poor do, in addition to having more resources and commonly more financial education. While many of these problems cannot be solved by governments, political leaders can limit income inequality and encourage investment.
By Mark D. Harris, MD, MPH, MBA, MDiv, ThM, PhD, DBA
Income inequality is not necessarily an evil but rather can be a motivator. It can be a fair reward for labor. However, extreme inequality of income and net worth, especially when unrelated to personal effort, is a vexing global problem. Television, the media, and social media highlight the differences between those who are too rich to drive and those who are too hungry to walk. Entrenched money holding, greater financial opportunities, and increasing societal complexity make the problem worse.
As income disparities have increased, certain individuals and organizations have accumulated sums of money unimaginable to most of the world. These hyper-rich private actors can shape the economic system, sometimes to the detriment of other people. Wealth consolidation can be a social good by motivating people to work hard and contribute to society at large. Extreme wealth consolidation, however, raises resentment, feelings of helplessness, and social instability. Though completely unjustified, the murder of UnitedHealthcare CEO Brian Thompson and the lionization of his alleged killer, Luigi Mangione, is an example.
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