Why We Need Limits on Extreme Wealth

At what point does personal wealth become morally problematic? This question lies at the heart of limitarianism, a political and economic philosophy advocating for upper limits on individual wealth accumulation in democratic societies. While some might view this idea as radical, there are compelling arguments for why capping extreme wealth could strengthen democracy and improve societal outcomes.

The Reality of Extreme Wealth

According to various sources, Elon Musk, Jeff Bezos, and Mark Zuckerberg each hold wealth close to or exceeding $200 billion, with Musk’s fortune significantly larger. These individuals have made extravagant purchases, such as Jeff Bezos’ $500 million yacht, Mark Zuckerberg’s $100 million sugarcane plantation in Kauai, and Larry Ellison’s $300 million purchase of the Hawaiian island of Lanai. Added to this picture is that America’s wealthiest individuals are avoiding paying their fair share in taxes. A new investigation by the nonprofit ProPublica shows that the country’s super-rich pay only a fraction in federal income taxes compared to the average American. Over five years, the 25 wealthiest Americans paid a combined $13.6 billion in federal income taxes. That amounts to an actual tax rate of only 3.4%.

And the rate of wealth accumulation of the “1%” is accelerating. The richest 1 per…