Rather than there being a “wealth distribution,” it is much more accurate to think of there being wealth creation and wealth redistribution. The percentage growth in the companies’ market value is generally higher than the percentage growth in the corresponding billionaire’s net worth. Understanding that billionaires’ wealth comes from their businesses and is at work in their businesses is an important part of dispelling these myths. Billionaires save and invest almost all their wealth precisely because they own more wealth than they need to consume. A scheme to, as Bernie Sanders suggested, rid the country of billionaires by taxing away most of their wealth, would only show how limited and tenuous billionaires’ wealth is.

Source: Forbes May 13, 2024 13:02 UTC