The Myth of Wealth Hoarding
Debunking the Idea that Extreme Wealth Concentration is Harmful
In a recent episode of the Making Sense podcast, Sam Harris expressed concern that advances in AI might lead to extreme wealth inequality with a few trillionaires isolating themselves in bunkers in New Zealand. This image—of trillionaires hiding their wealth in underground vaults—is emotionally provocative but economically ignorant.
Wealth today isn't piles of currency or gold bullion hidden away; it's predominantly invested capital—equity in companies, real estate, infrastructure, and technology. When a trillionaire invests billions in massive projects (e.g., advanced AI facilities, sprawling infrastructure, or large-scale developments),
Every dollar invested or spent by the ultra-wealthy becomes income for someone else, directly supporting:
Direct employment: Tens of thousands of skilled and unskilled workers (construction workers, engineers, architects).
Indirect employment: Hundreds of thousands employed in supply chains (manufacturing, logistics, materials producers).
Induced economic activity: Local businesses and services benefiting from workers' increased spending (restaurants, retail stores, healthcare, education).
Consider the possibility of Elon Musk spending $100 billion on a Mars mission using SpaceX's Starship. This investment flows through a global supply chain involving thousands of suppliers—from manufacturers producing stainless steel and specialized alloys, to electronics firms crafting sophisticated avionics, to software engineers developing guidance systems, to logistics companies transporting components worldwide. At each stage, income generated supports employment and sustains families and communities globally, clearly demonstrating how wealth invested in ambitious projects benefits society widely rather than remaining idle or hidden.
Far from hoarding wealth, trillionaires' massive expenditures feed, house, educate, and sustain vast communities. Wealth disparity itself is ethically neutral—what matters is whether agency and voluntary interaction are enhanced or reduced.
Real harm arises from poverty and coercion, not from mere inequality. Misunderstanding this distinction—imagining wealth as hidden rather than invested—is a critical error. Massive spending by the ultra-wealthy generates prosperity and opportunity for countless working families.
Recognizing this truth clarifies economic and ethical discussions about inequality, helping us focus on alleviating genuine deprivation instead of mistakenly demonizing wealth itself.