wealth inequality
Illustration by Ibrahim Rayintakath
TWO YEARS OF living through a pandemic has given us deeper insight into how extreme inequalities of income and wealth matter—and in some cases dictate who lives and who dies.
The pandemic economy supercharged existing inequalities, worsening the economic circumstances of the already precarious while further concentrating wealth and power in the hands of the already wealthy. In the first 21 months of the pandemic, roughly 700 U.S. billionaires saw their combined wealth increase by $2.2 trillion, even as millions lost their lives and livelihoods. A few hundred U.S. billionaires now have a combined wealth of $5.2 trillion, while the bottom half of all U.S. households—165 million people—have a combined $3.4 trillion.
It’s easy to see these inequality trends as invisible or remote forces without agency, or as failures of government policymakers to write the rules of the economy to ensure greater shared prosperity. However, there are private actors who function as “agents of inequality” whose daily work inflames existing divisions. These include what social scientists call the “wealth defense industry”—the veritable professional army of accountants, tax lawyers, wealth managers, and family office staffers that facilitates the hiding and sequestering of wealth.
These enablers serve the ultrawealthy—those with wealth upward of $30 million—and are paid millions to hide trillions. They labor to ensure that there is a two-tier tax system, with one set of rules for their ultrawealthy clients and another set of rules for everyone else. They also facilitate the creation of inherited wealth dynasties and monopoly power, directly exacerbating the existing racial wealth divide and entrenching concentrations of wealth and power.
The role of these enablers is in plain sight as nations around the world try to recover from the pandemic and find revenue to pay for it.
Disability rights sit-ins in the 1970s educated America and launched a civil rights movement. At the 45th anniversary, the church still lags behind.
The partially collapsed Champlain Towers South residential building in Surfside, Fla., on June 29, 2021. REUTERS/Joe Skipper
If we want to understand this tragedy, we must see more clearly the failure of these physical and social structures that we have built and continue to build. For too long, the Christian imagination has divorced our identities and social worlds from geography, as if we exist in the abstract, apart from the land and the built environment we inhabit. But what if who we are — and especially who we are together — is completely dependent on the everyday spaces we inhabit, like high-rise condos and retirement communities?
The student debt crisis in America is currently at its worst, making it more difficult for minorities, specifically African Americans, to attend four year colleges — especially private institutions as Morehouse College. It is estimated the average full-time tuition at Morehouse was $25,368 in the latest academic year. But with other expenses like room and board, books, and fees, the total can be above $48,000.
THE RICHEST EIGHT people in the world, according to an Oxfam report this January, own more wealth between them than the poorest 50 percent of humanity—3.6 billion people.
Let’s make that clear: Eight people own more wealth than 3.6 billion people. That is simply grotesque. And it is the type of fact that needs to break through the complacency and routine of our daily lives, and the latest outrages of the U.S. president, and spur us to demand effective collective action to change course.
Many people don’t spend much time thinking about the difference between income inequality and wealth inequality, but it’s important to understand that wealth inequality is both harder to fix and harder to justify, and it has enormous consequences that resonate over multiple generations. The reality that the Oxfam report makes plain is that even while global extreme poverty has seen dramatic reductions over the last couple of decades, global wealth continues to be concentrated at the very top, into fewer and fewer hands.
The recovery of global financial markets since the crash of 2008 has been very good for the already wealthy, but for those who didn’t have many assets to begin with, the recovery of the stock market has benefited them far less. To put it bluntly, the class of the people who had the most to do with causing the crisis ended up benefiting the most from it.
Prison Nightmares
Rikers: An American Jail , a documentary film from journalist Bill Moyers, draws on interviews with former detainees at a notorious facility, New York City’s Rikers Island, for insight into the violence and futility of U.S. mass incarceration. Airing on PBS in May, with faith-based viewers’ guide available for download. rikersfilm.org
Not Just a Game
Jackie Robinson: A Spiritual Biography , by Michael G. Long and Chris Lamb, details how faith helped Robinson, the first black baseball player in the major leagues, endure abuse and fight for civil rights, on and off the field. WJK
Mind the Gap
Economist Thomas Piketty’s landmark 2014 book on growing wealth inequality, Capital in the Twenty-First Century, is brilliant, but daunting at more than 600 pages. Enter Pocket Piketty, by inequality data specialist Jesper Roine, a portable and accessible introduction to Piketty’s vital and evermore-timely ideas and analysis. OR Books
Love and Dissent
With both love songs and protest anthems such as “Corrupción,” Ani Cordero’s new Latin rock album, Querido Mundo (Dear World), is a full-hearted call to embrace life and social justice in the face of disturbing politics in the U.S. and around the world. anicordero.info
Sean Locke Photography & Svetlana Lukienko/Shutterstock.com
While there are no biblical texts speaking directly to the issue of money in politics, biblical principles are still relevant, and people of faith have an important role to play in the emerging debate about the future of our democracy. Before exploring those principles, however, it is important to understand the serious issues of inequality currently present in our system, and the correlation between inequality and the money flooding our political system.
The richest 1 percent own more of the nation’s wealth than the bottom 90 percent. The richest one-tenth of one percent have as much pre-tax income as the bottom 120 million Americans.
In Affluence and Influence, political scientist Martin Gilens concludes that, “The preferences of the vast majority of Americans appear to have essentially no impact on which politics the government does or does not adapt.” He details the data throughout his book that clearly demonstrates policy makers are only listening to the wealthy donor class. This situation has been made even worse by the Supreme Court’sCitizens United in 2010, which allowed a huge influx of money to flood our political system after declaring the personhood of corporations.
The Court’s more recent decision in McCutcheon v FEC made matters even worse. Before McCutcheon, one person was able to contribute up to $123,000 to political candidates and parties. In striking down this aggregate limit, the Court paved the way for individuals to contribute more than $3.5 million directly to candidates and party committees. In a report detailing the potential impact of McCutcheon, Demos predicts the decision could result in more than $1 billion in additional campaign contributions by 2020.
ECONOMIC INEQUALITY ISN'T NEW. But this spring it became trendy, especially after Pope Francis dropped the tweet heard ’round the world in April: “Inequality is the root of social evil.”
Around the same time, Capital in the Twenty-First Century—a just-short-of-700-page book by French economist Thomas Piketty—became a best seller. Piketty, while not quite as concise as the pope, also sees wealth inequality as a problem—he focuses on its damaging effects on democratic institutions. Using extensive data, Piketty makes the case that escalating wealth inequality is built into capitalism. Without specific interventions, he writes, our politics and culture will be dominated by a small elite controlling vast amounts of primarily inherited wealth. It might create a new Gilded Age for some, but it won’t be any shinier for regular folks than the first one a century ago.
When class and economic status become news, the conversation tends to get a little shrill. Terms such as “Marxist” and “anti-business” were tossed around freely in reference to both Piketty and the pope. Some, of a more spiritual bent, sought to warn the pope and other Christians who decry inequality about the biblical sin of “covetousness,” offering reminders of the virtue of hard work. (I guess the hidden message of the parable of the rich man and the beggar at his gate is that Lazarus is envious; the real issue must be Lazarus’ poor work ethic and lack of get-up-and-go!)
But the inequality gap should be of concern to everyone, whatever their income or ideology. The point is not the fact that there are differences in wealth—those exist in any human society. And it’s not necessarily helpful or productive to seek scapegoats or assign broad characteristics to particular classes; neither poor people in general nor rich people in general are inherently noble, lazy, or scheming—temptations may vary, but good and evil can be found in people of every economic status.