When Regulation Changes Who Becomes Rich
29th September 2026
Economic debates about inequality usually begin with a familiar question: Who has how much income?
It is an important question. But perhaps it is not the only one we should be asking.
Good luck changing that.
A society can change who becomes rich without substantially changing how unequal the society is. Regulation can weaken one economic elite while creating opportunities for another. Entrepreneurs and investors may lose relative influence while lawyers, compliance specialists, lobbyists, consultants and regulatory experts gain it.
…
Income distribution and income-source distribution are not the same thing.
Regulation does more than redistribute income. It changes the relative returns to different kinds of knowledge and human capital. And when those returns change, talented people respond.