CEOs at major Australian companies earn 55 times more than the average worker, highlighting a growing wealth gap amid a cost-of-living crisis. This widening disparity is spurring calls for change from an unexpected quarter: wealthy individuals themselves.
"Gross inequality is not good for anybody, including the rich people, and it's unsustainable," says Morris Pearl, former managing director of Black Rock and chair of Patriotic Millionaires.
This group of high-net-worth individuals, mostly US-based, has incomes over US$1 million (A$1.5 million) or assets exceeding US$5 million. They aim to address wealth inequality by advocating for a fairer tax system and higher minimum wages.
"We're very concerned that inequality is getting worse and it is making our whole society unstable," Pearl told ABC RN's Future Tense. The group leverages its influence to push for policy changes, organising meetings with politicians and running strategy sessions with academics and activists.
Pearl believes that without intervention, society risks being divided into a wealthy elite and a working class with limited upward mobility. This concern drives the group's support for international tax reforms, such as a minimum tax on the very wealthy, proposed by French economist Gabriel Zucman.
Ingrid Robeyns, a professor of philosophy and economics at Utrecht University, advocates for "limitarianism", which proposes a cap on individual wealth to fund societal needs. While some, like Pearl, support high tax rates on the wealthy, there is debate on the extent of taxation.
Australian National University tax expert Cagri Kumru suggests targeting "unproductive" wealthy individuals — those with large inheritances or high incomes from non-entrepreneurial activities — rather than entrepreneurs who generate jobs. This approach, he argues, would be less disruptive to the economy.
The discussion highlights a growing consensus that addressing wealth inequality is crucial for societal stability and sustainability.