Limitarianism — could a cap on wealth reduce inequality?
Mar 13, 2025
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Morris Pearl, Chair of the Board of Patriotic Millionaires, and Maria Farrell, a writer and technology thinker, dive into thought-provoking ideas about wealth and the internet. They discuss the extreme pay gaps between CEOs and workers, arguing for higher taxes on the wealthy to combat inequality. Pearl champions Limitarianism, advocating for individual wealth caps, while Farrell calls for rewilding the internet to disrupt monopolistic control. Their conversation sparks a debate about using excess wealth for social good and creating a healthier online ecosystem.
The concept of limitarianism advocates for imposing a wealth cap to mitigate excess wealth's negative effects on society and promote equality.
Patriotic Millionaires argue that increased taxation on the wealthy is essential for sustaining democracy and addressing the alarming rise in income inequality.
Deep dives
A New Approach to Patriotism and Wealth
Patriotism can be redefined to promote social good and inclusivity rather than division. The organization Patriotic Millionaires, led by wealthy individuals like Morris Pearl, advocates for policies that address growing inequality, arguing that such disparity is unsustainable for all, including the rich. They propose that the wealthy should be substantially taxed to fund a healthier democracy and support societal stability. For instance, they are pushing for tax systems where the rich pay the same tax percentage as working individuals and suggest increasing the minimum wage to better enable basic living standards.
Understanding Income Inequality
Contemporary income inequality has reached alarming levels, with the ratio of CEO pay to median worker pay skyrocketing from 20 to 1 in the 1960s to approximately 400 to 1 today. Some CEOs now make up to a thousand times what their employees earn, showcasing a significant wealth gap that continues to widen. This vast disparity creates societal strain and poses serious risks to future democratic stability. The conversation around tackling inequality includes redefining income for tax purposes to ensure that wealth generated by assets is taxed appropriately, which is a step towards a fairer financial system.
The Concept of Limitarianism
The idea of limitarianism suggests establishing a societal wealth cap to enhance equality, asserting that while individuals can accumulate wealth, there should be limits to prevent harm to society. Dutch philosopher Ingrid Robain proposes an ethical cap, ideally around 10 million dollars, to ensure excess wealth is forfeited for societal needs. This concept emphasizes that both political regulations and individual moral choices should play a role in wealth distribution. The debate around limitarianism raises questions about how much wealth is sufficient and when it's time to cap individual riches to promote a fairer societal structure.
When a company CEO can be paid 1,000 times the average employee's salary it's probably time to take a long hard look at wealth inequality. And those calling for the rich to pay more aren't always the ones you'd expect – Patriotic Millionaires is a group of mega rich individuals demanding greater, not lesser taxation. Then there's the Dutch philosopher urging ordinary citizens to put a cap on their own personal wealth. She calls her approach Limitarianism. Also, Rewilding the Internet – how to purify an online environment made toxic by monopolistic capitalism.
Original broadcast on June 21, 2024.
Guests
Dr Ingrid Robeyns – author, philosopher and Chair in Ethics of Institutions, Ethics Institute, Utrecht University (The Netherlands)