More than a million people join ranks of very wealthy after stock markets boom
But this does not change the Pareto distribution curve of who possesses that wealth because only a vanishingly small number of people are highly productive. We need to ensure individuals have the ownership mechanisms to maximize their future wealth and reduce the current barriers to wealth for less wealthy persons.
The cure for wealth inequality is a two-part solution:
First, help the people not in the high end of the Pareto distribution curve to save earned income in personal accounts and invest those savings in assets. Those accounts should be protected against creditors, protected against taxation, transferable upon death, owned by the individual investing the money but protected from access until the person needs the money. So, they should resemble Social Security accounts in protection; and Roth IRA accounts in ownership and taxation. We may also need to have some of these assets annuitized once the individual begins to access the funds. Which might mean the retirement portion of these assets are annuitized while the personally saved/invested are not.
Second, eliminate the restrictive land use planning/zoning rules which are causing the wealth inequality.
Housing and Wealth Inequality
As the article infers, we need to both strictly limit land use planning and other restrictive land use rules, and we need to make less wealthy Americans "capitalists," to ensure they become rich. It will only be through fewer restrictions on land use, and asset ownership that all Americans can participate in the amazing wealth increase, we are experiencing.