Does the wealth gap matter?

Does the wealth gap matter? What are the major sides of this issue?
The wealth gap, defined as the unequal distribution of assets and wealth across individuals or groups within a society, is a topic that sparks considerable debate about its significance and impact on society.
Arguments for the importance of the wealth gap

• Limited opportunities and social mobility: Inequality can stifle access to crucial resources like education, healthcare, and technology, potentially trapping individuals in a cycle of disadvantage and hindering their ability to move up the social and economic ladder.
• Economic instability and reduced resilience: High wealth concentration may divert financial resources away from investments that promote growth and towards wealth protection, potentially leading to macroeconomic instability. Disparities can make households vulnerable to economic shocks, such as health crises, further increasing indebtedness.
• Weakened social cohesion and increased political polarization: Rising inequality can erode trust in public institutions, contribute to social discontent, and fuel political polarization and populism.
• Negative impacts on economic growth: Some argue that significant inequality can hinder long-term economic growth by reducing overall demand and making it more difficult for a large portion of the population to contribute to the economy's potential.
• Impact on democracy and political influence: Wealthy individuals and corporations can potentially exert outsized influence on government policies through campaign finance and lobbying, potentially further entrenching their power and undermining democratic principles.

Arguments against the importance of the wealth gap or highlighting positive aspects

• Focus on poverty, not just inequality: Some experts suggest focusing on reducing poverty rather than solely on the wealth gap, arguing that inequality isn't necessarily problematic if everyone is experiencing improved living standards, according to analysts at the libertarian Cato Institute.
• Incentive for innovation and economic growth: A certain degree of wealth inequality is seen by some as a natural consequence of a capitalist system, which can motivate individuals to work harder, innovate, and contribute to economic growth, ultimately benefiting society as a whole.
• Wealth is not a zero-sum game: The creation of wealth is not necessarily at the expense of others, and wealthy individuals may invest in businesses and create jobs, leading to broader economic prosperity.
• Wealth inequality as a consequence of economic freedom: Some argue that wealth inequality is an inevitable outcome of a system that values economic freedom and allows individuals to pursue their aspirations, notes the Heritage Foundation.
• The challenges of measuring wealth accurately: Accurately measuring wealth can be difficult, as it encompasses various assets and liabilities, and factors like social insurance and pensions may not be fully captured in standard calculations, according to the Center for Economic and Policy Research.

It's important to recognize that the debate surrounding the wealth gap often involves complex ethical, economic, and political considerations. There is no simple answer to whether the wealth gap "matters," as the answer likely depends on one's perspective, values, and the specific context being examined.

For this event, we can consider whether and to what extent the current wealth gap in the US and worldwide might be too high. Is too much wealth concentrated in too few hands? If you think this is true, then what solutions would you offer?