Elon Musk and the Age-Old Worries About Wealth Inequality

The immense wealth of Elon Musk, the world’s first trillionaire, has sparked widespread fascination and concern. Many strive to comprehend the scale of his fortune, using comparisons that include towering stacks of $100 bills. Economist Steven Durlauf has pointed out that John D. Rockefeller’s historic wealth once accounted for 1.5% of the U.S. GDP. Mr. Musk’s wealth, by contrast, now surpasses 3% of it.

A striking example of his financial magnitude is noted in The Times. Elon Musk’s net worth is calculated to be five million times greater than that of the average American family. Such figures prompt a reflection on the implications of economic inequality, a topic once explored by the philosopher Plato.

Plato, often regarded as the first Western thinker to examine economic inequality, argued in his work “Laws” for a limit to wealth disparity. He proposed that no individual should possess more than four times the wealth of the poorest citizens in a republic, recommending that any excess should benefit the city. While this idea is challenging to apply in contemporary economies, Plato’s concerns remain relatable.

Growing up in Athens, Plato witnessed a society nearly torn apart by income disparity, as recounted by Plutarch. The city was rescued by Solon, a lawgiver who alleviated debts for the poor, angering the affluent. Additionally, Athens’ history during Plato’s youth included a series of class-based civil conflicts, reflecting enduring tensions between rich and poor.