A Solution to
Wealth Inequality
If the ultra wealthy wanted to solve wealth inequality, they could do so easily. This begs the question: has anyone tried simply asking them?
About the Book
The world's wealthiest people have more money than they could spend in a thousand lifetimes. Meanwhile, billions struggle to meet basic needs. This book presents a novel solution: persuading wealthy people that greater generosity is in everyone’s interest, including and especially their own.
Most approaches to wealth inequality rely heavily on the notion of forced redistribution through higher taxes. For a variety of reasons, this is not going to work. Instead, we need to help wealthy people shift their mindset around wealth and generosity. A Solution to Wealth Inequality seeks to persuade wealthy people to solve this problem of their own volition. It helps them better understand their motivations for amassing wealth and the dangers presented by rising inequality. It also shows them that there’s a better way to be wealthy, one where they have exactly the same material comforts as now, while also helping to build a happier, safer, and more vibrant society.
The Number
Your Number is the net worth that pays for the most comfortable lifestyle you would realistically want to live—past this, it’s all just digits in a bank account. This book does not try to convince wealthy people to downsize their lifestyle, and in fact the message is quite the opposite: figure out exactly what you want, and have all of it. But most ultra wealthy people have far more than their Number, thousands of times more in some cases. When wealthy people calculate their Number, they’re figuring out the point at which their excess wealth isn’t doing anything for them, but could be making a world of difference for others.
Making generosity aspirational and rewarding
One of the reasons the ultra wealthy continue chasing ever higher net worth is that it’s a clear and objective measuring stick. While they can’t be sure if more subjective areas of their life are improving — happiness, love, connection to family, and so on — they can look at a net worth that’s higher than it was a year ago and know that at least one thing is moving in the right direction. We need to make generosity scratch this same itch, and this book is full of ideas on how to do that. When we build the right incentives around generosity, the ultra wealthy will start narrowing the wealth gap because they want to, with no need for coercion.
Changing cultural values around wealth and generosity
Most Americans have heard of the Forbes 400, which has measured and tracked the world’s wealthiest people for more than 40 years. Similarly, most people can name at least a few of the world’s wealthiest people. But what about the world’s most generous people? Far fewer people can name them, and that needs to change. There are specific, concrete steps we can take elevate generosity in our society, including adopting a new way to express net worth that reflects a person's Giving Factor — the percentage of their net worth they've given away. When our culture starts to value giving over accumulation, people’s motivations will follow.
Why This Approach Works
Humans are fundamentally motivated by recognition, competition, and social status. In our current culture, these incentives all point toward amassing more wealth. But with some new ideas and a shift in perspective, we can forge a new society where giving away wealth becomes more prestigious than hoarding it. When billionaires compete over who's given the most instead of who has the most, there's no limit to the good they can do in the world.
Who Should Read This Book
- High net-worth individuals considering their philanthropic legacy
- Entrepreneurs and founders who have built significant wealth
- Anyone interested in practical solutions to wealth inequality
- Philanthropists looking for evidence-based giving strategies
- Policy thinkers exploring alternatives to taxation
- Anyone who's curious about the psychology of wealth and giving