Economic Inequality

Paul Graham’s essay Economic Inequality argues that economic inequality is not a single problem but has multiple causes—some bad, some good.

The Pie Fallacy

Rich people don’t only become wealthy by taking from the poor. Wealth can be created. “A woodworker creates wealth. He makes a chair, and you willingly give him money in return.”

Multiple Sources

Rather than one cause, inequality stems from various sources. “To understand economic inequality…you have to go find individual people who are poor or rich and figure out why.”

Technology’s Role

Accelerating technological productivity is an “irreducible core” of inequality with “immense momentum.” This cannot be reversed without eliminating entrepreneurship.

Recommended Focus

Instead of targeting inequality itself, address:

Actual poverty (not relative inequality)
Blocked social mobility
Corrupt practices
Systemic injustices

My Takeaway

“Economic inequality is sufficiently far from identical with the various problems” that focusing on it misses underlying issues requiring direct attention.