Limitariansm: The Case against extreme wealth

Programme UpdatesResponsible Tax Further Reading

11 Apr

I recently joined the Policy Institute at Kings College and the Fairness Foundation for an instalment of their Fair Society series Limitarianism: The case against extreme wealth. The recording of the event can be found here.

In her book, philosopher and economist Ingrid Robeyns sheds light on the alarming extent of our wealth problem, which has quietly escalated over the past 50 years. From moral and political perspectives to economic, social, environmental, and psychological dimensions, she argues that extreme wealth is not only unjustifiable but is also detrimental to society as a whole, and proposes a radical solution – placing a hard limit on the wealth that any one person can accumulate.

Professor Ingrid Robeyns, Chair in Ethics of Institutions, Utrecht University argued for a philosophical and ethical argument advocating for the limitation of individual wealth accumulation. The concept of Limitarianism suggests that there should be an upper limit on personal wealth, beyond which individuals cannot accumulate more. This perspective is grounded in the belief that extreme wealth inequality is harmful to society, leading to various social, economic, and political problems such as poverty, unequal opportunities, and excessive influence of the wealthy on decision-making processes.

Some key points included:

Reduced Wealth Inequality: Limitarianism aims to mitigate the vast disparities in wealth distribution by capping individual wealth accumulation. By doing so, it seeks to create a more equitable society where resources are more evenly distributed.

Social Stability: Extreme wealth inequality can lead to social unrest, resentment, and tension. By implementing limits on wealth, Limitarianism aims to promote social cohesion and stability by reducing the gap between the wealthy and the rest of society.

Greater Economic Opportunity: Limiting extreme wealth accumulation can lead to a more level playing field, allowing for greater economic opportunity for individuals across various socio-economic backgrounds. This can help address systemic barriers to mobility and promote meritocracy.

Enhanced Democratic Governance: Excessive wealth can translate into disproportionate political influence, undermining democratic principles. Limitarianism seeks to curtail the concentration of economic power and reduce the potential for wealthy individuals or corporations to unduly influence political processes.

Improved Well-being for All: By ensuring that wealth is distributed more equitably, Limitarianism aims to improve overall well-being by providing resources for basic needs such as healthcare, education, housing, and nutrition to all members of society.

Environmental Sustainability: Extreme wealth can contribute to overconsumption and environmental degradation. Limitarianism may promote more sustainable consumption patterns by discouraging excessive accumulation of resources and encouraging responsible stewardship of natural resources.

“Basically what I want to do with this book is to say, yes, we all accept that as a societal goal we want to try to eradicate poverty,” Robeyns said during the event. “Good. But actually, let’s also look at the other side. The fact is, we should and must minimise the number of super-rich people and the amount of wealth concentration because of all these bad effects”. “I contend,” said Robeyns, “that for people who live in a society with a solid pension system, the ethical limit [on wealth] will be around 1 million pounds, dollars or euros per person.”

The panel for this event included:

Luke Hildyard, Director, High Pay Centre and author of 'Enough: Why It's Time to Abolish the Super-Rich'
His book contends that the existence of super-rich individuals poses significant ethical, social, and economic problems for society. It explores the negative impacts of extreme wealth on democracy, social cohesion, and economic inequality. The author advocates for policies and reforms aimed at redistributing wealth more equitably and limiting the power and influence of the super-rich. Additionally, the book delves into the psychological and moral implications of excessive wealth and proposes alternatives that prioritise the well-being of society as a whole over the accumulation of vast fortunes by a select few.
Graham Hobson, technologist and member of Patriotic Millionaires UK
Graham is a technologist who founded Photobox in 2000, growing it to become Europe's largest personalisation company. He now advises on growth and entrepreneurship, and works pro-bono in the areas of social impact, climate change and under-represented founders.
Will Snell, Chief Executive, the Fairness Foundation (Chair)
Will Snell is Chief Executive of the Fairness Foundation. He is a non-profit entrepreneur with experience across a range of sectors, both in the UK and overseas. After founding an educational charity at university, he spent several years on the UK government’s civil service fast stream programme at the Department of Health and then the Department for International Development, working on a range of issues including emergency planning, counter-terrorism and Iraq reconstruction, before leaving to set up a skills mentoring programme for entrepreneurs in Kenya.

Limitariansm: The Case against extreme wealth

Some key points included:

The panel for this event included:

Other recommended reading included in the conversation included:

Adventures in Democracy - Jericho Conversations with Erica Benner

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