Capitalism has provided us with many benifits like technology, cheaper products and ample amounts of food. Since the industrial revolution, the quality of life has increased rapidly and is continuing to trend in a positive direction. On the other hand, it has also increased the disparity between the wealthy and the poor. This gap is increasing at a pace never seen before and it’s causing the poor to be poorer.
Our current system rewards people who create wealth and value to the economy. Once they acquire their wealth, they are on a trajectory of acquiring even more. At some point, they cross a threshold where it becomes too much for any person too have and it begins to negatively impact society. For example, the Indian economy has done really well in the past few years but the state of the poor has either remained the same or has gotten worse. This is mainly due to the unwillingness of the wealthy to give back to the poor. We as a society can’t advance further if the lives of the minority get better at the expense of the lives of the majority.
Moreover, the population of high net worth individuals has been increasing over the past few decades and it is coming to a point where they are causing the prices of everyday items to increase as well. People who are in a state of poverty are having a hard time keeping up with the prices causing further hardship to their already difficult life. For example, grocery prices have risen six percent faster than the average wages. We need a system where after a certain point, the acquisition of wealth becomes extremely hard.
One way to tackle this issue is to implement a progressive tax system where after a certain point it becomes really hard for the rich to get richer. In addition, we also need a robust system to ensure that the rules set by the government are being followed. Even though many countries have taxes, rich individuals constantly find a way to evade them. Another way of solving this issue is rewarding individuals who give back to society through government titles and awards. We need to build a culture where philanthropic actions are treated with the highest of regard.
We have a long way to solve this issue and improve the state of the poor. But through the right policies and mindset we are certain to reach a utopia where everyone has an equal chance to grow themselves.