Could capping top incomes tackle our rising inequality more effectively than conventional approaches to narrowing our vast economic divides?  Some while ago the Program on Inequality at the Institute for Policy Studies published “The Case for A Maximum Wage”, by Sam Pizzigati, an IPS associate fellow and the co-editor of Inequality.org.

Pizzigati docusses how egalitarians worldwide are demonstrating that a “maximum wage” could be both economically viable and politically practical. One major American city is already socking a higher tax rate on companies with wide divides between worker and executive pay. Activists in other jurisdictions are working to deny inequality-generating enterprises government contracts and subsidies.

Governments could go further still and start using their tax systems to enforce fair income ratios between rich and poor across the board. The ultimate goal ought to be a world without the super-rich. His analysis explains why we need to create that world — and how we could speed its creation.k

Moderate Epicureans would probably support a maximum wage. Every unequal society in history has either descended into violence or otherwise collapsed, so there is an historical backing for quickly doing something about excessive income and wealth. Why does the owner of Amazon, Jeff Bezos, need $143.1 billion? How can he possibly spend even $1 billion of it? How can he justify the low wages and poor working conditions in his company? Yes, I have done my little bit to put him where he is – customers love the sevice. But the key is “moderation” – he has none.

The problem comes with implementation. Studies have shown how insecure rich people actually are. Few believe they have enough money and want even more. They are willing to spend some of it to protect their store of wealth, and this means lobbying and the suborning of ambitious people who are prepared to curry favour in return for hard cash. Hard to stop this, but in America a more intelligent Supreme Court could do marvels. It’s why American democracy is descending into farce. The people involved are focussed on themselves, not the nation. Corruption is the name of the game and we are mired in it.