The American Path Forward (Part 1) — High-Impact Solutions to Tackle Inequality
“If inequality is a policy choice, then justice can be one too.”
For the past four days, we’ve traced the arc of economic inequality—from its role in democratic collapse, to its persistence under authoritarian regimes, to the moments in history when it was actually reduced.
Now, we turn to the path forward. And not just any path—but the most powerful, targeted policies the U.S. could adopt right now to begin reversing decades of wealth concentration.
These are the policies with the greatest impact on inequality, even if they face serious political resistance. If we’re serious about restoring shared prosperity and protecting democracy, we have to start here.
Tax Wealth Like Work
The problem: The ultra-wealthy don’t get rich from paychecks. They get rich from owning things—stocks, real estate, private equity. And under current law, these gains are taxed at much lower rates than wages (if at all).
The fix:
Raise capital gains taxes to match income tax rates.
Eliminate the “stepped-up basis” loophole that lets inherited assets avoid capital gains tax entirely.
Implement a minimum tax on billionaires based on unrealized gains.
Impact:
This would directly reduce the wealth gap, generate significant public revenue, and restore fairness to a system that currently rewards passive asset growth more than labor.
Reform Inheritance and Dynastic Wealth
The problem: A huge portion of American wealth is inherited—and the largest estates escape taxation almost entirely. Over time, this creates a permanent aristocracy of wealth.
The fix:
Strengthen the estate tax by lowering exemption thresholds and increasing rates for the largest estates.
Close trusts and loopholes that allow billionaires to pass on wealth tax-free.
Implement “baby bonds”—federally funded accounts given to every child, scaled by family income, to build wealth over time.
Impact:
This doesn’t just redistribute wealth—it democratizes opportunity. Baby bonds, in particular, would narrow the racial wealth gap over a single generation.
Expand Worker Ownership and Power
The problem: Most workers don’t share in the profits they help create. Ownership—and decision-making power—are concentrated at the top.
The fix:
Support employee ownership models (like ESOPs and worker cooperatives).
Offer tax incentives for retiring business owners who sell to workers.
Strengthen unions and collective bargaining rights to ensure workers get a fair share of profits.
Impact:
Ownership is one of the most durable forms of wealth. When workers have a stake—not just a wage—they build stability, influence, and equity.
Public Investment in Shared Wealth
The problem: Decades of disinvestment have hollowed out the institutions that build middle-class prosperity—public education, infrastructure, and community development.
The fix:
Reinvest in public housing, transit, clean energy, and education—especially in underserved areas.
Create public options in key sectors (like banking, broadband, and childcare) to reduce dependence on extractive private markets.
Impact:
This doesn’t just lift individual households—it rebuilds the foundation for broad, place-based prosperity. And public investment pays off: every dollar spent on high-quality early childhood education or infrastructure returns multiple dollars in long-term growth.
Guarantee Access to Financial Tools
The problem: Millions of Americans are unbanked or excluded from credit markets, making it harder to save, invest, or start a business.
The fix:
Create postal banking or public banking options to serve low-income communities.
Crack down on predatory lending and strengthen credit access for historically marginalized groups.
Expand federal matching for retirement and savings accounts for low-wealth households.
Impact:
Access to basic financial tools is a quiet, powerful equalizer. When people can participate fully in the economy, they can build security and independence.
What These Solutions Have in Common
These policies:
Target the structural roots of inequality—not just the symptoms.
Challenge the wealth-hoarding mechanisms that keep power concentrated.
Invest in the broad base of the population, not just the investor class.
They’re not about punishing the rich—they’re about making the economy serve more than just them.
Tomorrow: What We Can Win Now
Of course, the most impactful reforms are also the hardest to pass—thanks to lobbying, gridlock, and a political system tilted toward wealth.
That’s why tomorrow we’ll look at the most politically feasible solutions—the ones that may not shake Wall Street to its core, but that millions of Americans could rally behind right now.
From education to care infrastructure, we’ll explore what can be done today to begin bending the arc back toward justice.