Aretaic Ethics and Practical Effects of Too Concentrated Wealth

Philosophers classically favored aretaic ethics—those centered on virtue. For me, investors like Warren Buffett seem somewhat immoral. Overly concentrated wealth harms real competition. Very large investors hold such a vast financial advantage over the majority that new ideas and inventions struggle to emerge from the bottom up. Inventive ideas actually and are effectively co-opted and siphoned up to the wealthy. It is important for the health of free enterprise to prevent excessive concentration of capital—especially since concentrated wealth so heavily influences politics.

The top 1% own about 30% of American wealth, the top 20% own roughly 80%, and the bottom 80% of people own just 15%. Because even congressional elections are extremely costly—averaging between $2.5 million and $8 million for House winners, and about $27 million for a U.S. Senate seat—the ability to fund campaigns and shape political influence is decisive. Plainly, 80% of the people have limited ability to sway federal campaigns when advertisers and media are largely bought and paid for by the wealthy. The public sector is allowed and even encouraged to compile vast debt. The debt is owned by the wealthy and permits rhetoric in support of cutting public services.

Capital multiplies faster than wages, so wealth concentrates and the majority become politically powerless. I support limiting the amount of capital an individual can own to a reasonable percentage of the market’s total value, national wealth, and the nation’s median income. When too many people have AI algorithms executing light-speed trading, manual labor and ordinary work become trivial pursuits compared to the advantages enjoyed by those who own capital. Since the end of the Cold War, wages have risen about 30% while Wall Street gains have soared roughly 2,800%. The profit has gone overwhelmingly to the top 10% or so. Perhaps those with a morally sound outlook simply do not wish to make multiplying capital their primary occupation.

I once took one of those online IQ tests. I invested my time in reading books on history and philosophy instead of buying gold stocks… so now I need to work for a living rather than watch a portfolio grow while sipping Mai Tais on a tropical beach.