Hmm. I tend to think that Rand's philosophy misses some important points, like:
1. Humans hate inequality, esp. those who are on the losing end, but it seems to make everyone unhappier in general. Inequality is useful, but probably needs some managing.
2. Massive wealth generated in modern societies, though it tends to fall into the hands of a few (exponentially so), is generated by having a society/collective. If you have more wealth than you could ever generate with your own two hands, then you're benefitting from society in a major way, regardless of how much society takes back. (Even this is not strictly true--what you can generate with your own two hands depends on education, inventions society has given to you (like language), etc. It's hard to calculate one's debt to society.)
I think it's important what kind of inequality we're talking about. Are we talking inequality between two people with similar opportunities and education, one lazy and unimaginative and the other a creative risk taker?
Or are we talking inequality between joe the dock worker, son of a dock worker, working the dock reasonably well, but never looking beyond, and jack the corporate lawyer, son of a corporate lawyer, working the legal docs reasonably well, but never looking beyond?
Inequality throughout history was rarely down to merit. I very much sympathise with Rand's point of view, but after having lived in one of the most run-down parts of the UK, I know that poverty breeds poverty.
Yes the superstars rise from poverty through their own work and they should not be punished for it. But for every superstar there are 100 joe/jack pairs and the difference between their income is based on little else than class.
[edit] Jill the waitress might have been a better example since dock workers have a powerful trade union in some countries.
I think the closer you get to merit based accumulations of wealth the better for society. Let's suppose you could give 15 million inflation adjusted to your children, but after that it's taxed at 75%. Now clearly 4 billion to 1 billion is not going to eliminate wealth quickly, but the history of the ford family and the ford company is going to look vary different.
Now do the same thing but start that at 250k vs 15 million. Your still going to have the corporate lawyer issue but that still has a lot to do with education and a type of drive.
"Massive wealth generated in modern societies, though it tends to fall into the hands of a few (exponentially so), is generated by having a society/collective. If you have more wealth than you could ever generate with your own two hands, then you're benefitting from society in a major way, regardless of how much society takes back. (Even this is not strictly true--what you can generate with your own two hands depends on education, inventions society has given to you (like language), etc. It's hard to calculate one's debt to society.)"
You know, if you replace every instance of "society" in that sentence with "people throughout history who were left free to create things that make life easier, without having the product of their effort stolen from them," you'd get something Ayn Rand might have written herself.
I think (1) is a really interesting point, but don't you think that humans also strive for inequality? People don't just want to keep up with the Jones's, they derive great satisfaction from being ahead of the Jones's.
2) I think society benefits more from the generators of massive wealth than they do from the society. Obviously it is mutually beneficial, but the fountains of wealth would probably do fine with or without society.
1. Humans hate inequality, esp. those who are on the losing end, but it seems to make everyone unhappier in general. Inequality is useful, but probably needs some managing.
2. Massive wealth generated in modern societies, though it tends to fall into the hands of a few (exponentially so), is generated by having a society/collective. If you have more wealth than you could ever generate with your own two hands, then you're benefitting from society in a major way, regardless of how much society takes back. (Even this is not strictly true--what you can generate with your own two hands depends on education, inventions society has given to you (like language), etc. It's hard to calculate one's debt to society.)