With the US oligarchy taking over the White House next year, it’s time to look at what we need to develop to counter the mess and the broken economy they will leave post-Trump’s presidency. Philosopher Ingrid Robeyns, a leading proponent of limitarianism, argues that beyond a certain threshold, wealth does not significantly improve individual well-being, and may cause harm to others by perpetuating inequality and reducing collective welfare. While not a new idea, with historical thinkers such as Plato and JP Morgan espousing similar concepts, perhaps it times to further explore limitarianism.

Limitarianism is a philosophical and political concept that advocates setting limits on individual/family wealth to promote social equality, reduce harm caused by extreme wealth accumulation, and ensure fair distribution of resources. It is rooted in ethical considerations about justice, sufficiency, human welfare, and a sustainable environment. 

The philosophy suggests that extreme wealth is morally problematic, especially in societies where poverty and inequality persist. Excess wealth could be better used to address social issues like hunger, education, or healthcare. The accumulation of excessive wealth can lead to an imbalance of power, undermining democratic institutions. Wealthy individuals may exert disproportionate influence over political systems, media, and public policies. How many times have we seen this in western-style G7 democracies in recent years, where the right do everything they can to protect their wealth and power, while working people can’t pay for the basics of housing, food and transportation? 

Supporters of limitarianism argue for changes in taxation on income, inheritance, and wealth to cap extreme fortunes, along with a redistribution of excess wealth to fund programs like Universal Basic Income (UBI), ensuring a safety net for all citizens. Critics argue that wealth limits could stifle innovation, entrepreneurship, and economic growth, while curtailing personal liberties, and especially the right to accumulate multi-generational wealth.

While enforcing wealth caps, and managing global disparities in wealth distribution can be challenging in practice, limitarianism is gaining traction in debates on wealth inequality, especially in light of growing disparities between the ultra-rich and the rest of society. Movements advocating for wealth taxes and income redistribution often draw from limitarian principles to challenge the concentration of wealth and power.

As a leading advocate for limitarianism, Robeyns argues that extreme wealth is both unethical and harmful to democracy. She proposes a wealth cap of approximately €10 million, emphasizing that any surplus beyond what is needed for a flourishing life could be redirected toward societal challenges like the climate crisis or inequality. Where do you stand on this issue? For me, it seems like one possible set of mechanisms to help rebalance the redistribution of resources, while still supporting a western-style capitalist growth economy.