We need a maximum wealth cap. I want to see a world where you are literally not allowed to have a net worth over a certain amount. I believe capitalism has its place, but unconstrained capitalism leads to innumerable social ills. You want to let people get rich enough to provide an incentive to get educated, work hard, start businesses, and innovate. But you do not want enough wealth that individuals or small groups of individuals can become a threat to society. We don't allow individuals to own nuclear weapons, regardless of how virtuous they may be. We decided long ago that private ownership of nuclear weapons is simply too much power in the hands of one individual.
Yet with enough wealth, an individual can create human misery equivalent to a nuclear weapon. For example, Elon Musk has a net worth of $400 billion. If he chose to, could spend his fortune on destroying the lives of 400,000 people. He could select his victims based on whatever criteria he chose. And he could spend $1 million per person simply hiring lawyers to make their lives Hell. Target them with frivolous lawsuits. Even if he never won a case, he could drive them into bankruptcy through legal fees alone. Or, he could pick a city of a million people and dedicate his fortune to just ruining that city. He could deliberately fund the campaigns of the worst candidates imaginable, and offer them enormous fortunes to deliberately destroy that city. Wealth is power, and power is wealth. They are equivalent and interchangeable. If you want to have a democracy, you cannot have unrestricted wealth.
I would set the wealth cap for any nation at 1000x the median household income of that nation, averaged over a certain number of years. In the US, that would be at this time about $80 million. That is a level of wealth even the most skilled and high-paid of lawyers or physicians, if they worked til the grave, lived like a pauper, and invested everything else, would still struggle to reach by the time of their death. The only way people reach that level of wealth is by leveraging the labor of others. And it is a level of wealth far, far above the level where increasing wealth continues to meaningfully increase happiness. That level of wealth is only useful to a person if that person seeks to manipulate and control other human beings.
We need a maximum wealth cap. Beyond a certain level of wealth, everything is taxed at 100%. I think 1000x the median household income is a good place to set that level. And I think that is extremely generous. I don't care what the former billionaires do with their extra income that would put them above this level. They could simply retire when they hit the cap. They could donate it to charity. They could give it all to their extended families. They could give it to their employees. They could hold grand parties in their home city every year that rivaled the excesses of ancient Rome. They could spend it all on giant yachts. Ultimately, I don't care. The core problem is the concentration of wealth and power in a small number of individuals. Any method of spreading out that wealth will avoid this problem. Even if they just give it all to their extended families, it would still be for the best. If Elon Musk wants to divvy up his fortune to his 5,000 closest family and friends, so be it. Even if every one of them was as much of a bastard as he was, at least they'll have conflicting interests, and few of them will want to see anyone appointed dictator.
We need a maximum wealth cap. Forget taxing incomes. Forget a wealth tax. We need to drive a dagger into the heart of the evil that haunts our society. The world does not need billionaires. We can have the benefits of efficiency and innovation that come with a free market without letting wealth concentrate to the point of farce. We can provide an incentive for people to work and discover without allowing individuals to become a threat to nation states. Even if you believe in the myth of visionary capitalist geniuses, we don't need billionaires. If Musk is already capped out on wealth, the board of SpaceX can still hire him as CEO. He can still enjoy the social status as influence of being the CEO of SpaceX, he just has to dispose of that wealth each year however he chooses.
1000x the median household income. No one should be able to have a fortune larger than this.
