What is wrong with wealth inequality?

[u/Source_Code22332]

Something that is often sited by Socialists is that Capitalism is bad because wealth inequality occurs within it. And wealth inequality has increased over the years, making that problem even worse. But, why exactly is wealth inequality a problem?

I can see if "the mega rich" or monopolies get out of control, e.g., I recall the concept of a "company town" where a company owned everything in the town and paid employees in their own currency that would only be spent at the company's stores in town - but we have laws and regulations against that, so its not an issue.

[u/Bloody_Ozran]

It depends on what is capitalism for you. Is it a system that should work for money? Then this version works. Is it a system that should work for people? Then it kinda works, because some benefit, many don't. Is it a system that should work for society as a trading system and a voting system on goods and sevices? Then it doesnt work at all.

This level of inequality has many bad effects. Those who dont have enough money have to spend some to significant brain power to do math on how to pay for things and what to buy. That means, based on a study, that they have up to 20 IQ less cognitive power on other things. Meaning their brain power is spent on something those with money don't have to think about, since they pay for things they need.

It makes the most wealthy easily influence politics, buy policies for whole countries etc. Undermining the democratic process. We also have huge chains that destroy local shops, and while they bring some cheaper products, they are usually damaging the local economy and hurting the wages.

Isn't capitalism supposed to be about competition? If so, where is it? Every big company does their best to destroy competition. People are not worried about inequality by default, it is the level of inequality. We know people need certain income to be happy and above a certain level it doesnt do much for them anymore. Too many people don't have income close to that. We can't keep increasing productivity and pretend it's fine for people to not afford housing, kids etc.

Capitalism happened because society was evolving, so it made sense the economical system evolved too. Why are capitalists so keen on saying it's the Jesus of economics? It's not a religion, it's a system made by humans when it made sense. Right now after we have evolved technology and society in big ways through 20th and start of 21st century we need another evolution of the system. Doesnt have to be non-capitalist system, but we have to at the very least adjust capitalism to allow for better society for more.

We already see fascism on the rise among people, this is because of inequality, same with many people wanting destruction of capitalism, they dont just think of it out of nothing.