Though some billionaires are unpopular nowadays, it would be a mistake for lawmakers to discourage people from becoming billionaires or to impose taxes that make it impossible to accumulate a billion dollars in wealth. Many billionaires have gotten their wealth by providing or investing in innovative products or services that have improved the lives of millions of people. And they have done this by providing consumers with their first-choice product at a low cost. For example, Jay-Z and Taylor Swift became billionaires in part because their fans can access their music online, while less preferred artists can’t compete by selling music at a lower price. Economists call this the superstar effect. The music industry, like a society’s economic system as a whole, can generate extreme inequality just by letting consumers and producers trade freely.
Finally, billionaires are often philanthropists, benefitting morally important causes that public officials overlook, such as global poverty relief, animal welfare, and environmental justice. As Jay-Z once said, “I can’t help the poor if I’m one of them, so I got rich and gave back. To me, that’s the win-win.”
—JESSICA FLANIGAN
Political Philosopher, University of Richmond