How Much Inequality Is Acceptable?

Abstract

AbstractThis chapter outlines the argument that there should be a maximum wage, drawing on the work of Ingrid Robeyns on “limitarianism,” which is the doctrine that it is immoral for the rich to possess too much wealth. It is not necessarily intrinsically bad to be a rich person (depending on how the wealth was acquired), but a society which allows individuals to accumulate tremendous wealth leads to unjust consequences. The chapter argues that society should impose maximum limits on income and wealth because having too much wealth is a major problem for society for two principal reasons. First, the rich undermine democracy. Second, the rich privately appropriate the resources that are desperately needed for other things, such as providing basic needs, essential opportunities, green investment, and economic security to reduce xenophobia and populism. Not only are such limits ethically necessary, they are also practically feasible. Ultimately, coherent egalitarianism embodies limitarianism.