I've been reading about income/wealth inequality and the ways different countries (US/EU) are trying to solve this.
I've also learned about two rivaling points of view that can be expressed as follows:
- Rich people like Elon Musk moves the humanity forward and the more money they have, the bigger impact they can make
- Wealth makes it much easier to get richer.
It looks like EU govs doubles down on increasing taxes for the rich. So it's kinda explored and well studied technique to fight inequality. And this approach certainly goes against the ones who says "Elon Musk moves the humanity forward, give him more money".
It appears to me, that all parties agree that generational wealth is more harmful than self-made wealth.
My question is: How much does generational wealth contributes to wealth inequality? I wonder if there were any attempts to make it much harder to inherit wealth instead of just pushing the progressive tax up on rich people. If not, then why?
I'm a total newbie in economics, sry if this question is too naive :)