Economic Legitimacy and the Myth of Wealth as Merit

Legitimacy battles do not just determine who has political power or social recognition - they also determine who deserves wealth, stability, and economic success. Just as race, gender, and sexuality have been used to justify hierarchy-based legitimacy, economic status has long been weaponized as a marker of who is “deserving” and who is not.

The belief that wealth is a reflection of personal merit is one of the most enduring hierarchy-based legitimacy myths. It is the foundation of capitalism’s moral framework, shaping how people view poverty, success, and social mobility. But in reality, economic legitimacy is not just about personal effort - it is about who is allowed to succeed and who is structurally excluded.

The Historical Roots of Economic Legitimacy

Throughout history, economic legitimacy has been tightly controlled to preserve existing power structures.

• Feudalism justified aristocratic wealth through divine right, portraying nobles as inherently deserving of land and resources.
• Colonialism and slavery positioned wealth extraction as a sign of superiority - those who conquered and profited were seen as naturally legitimate rulers.
• The Industrial Revolution cemented the idea of wealth as personal merit, portraying industrialists and capitalists as self-made visionaries, despite their reliance on exploited labor.

These patterns persist today - the wealthy justify their power by framing economic success as a moral achievement, while the poor are blamed for their own struggles.

Neoliberalism and the Reinforcement of Economic Hierarchy-Based Legitimacy

In the late 20th century, neoliberalism emerged as the dominant economic ideology, reinforcing the legitimacy of extreme wealth concentration.

• Deregulation and tax cuts for the wealthy were justified as necessary for economic growth, even as inequality skyrocketed.
• The decline of labor unions and worker protections shifted economic power further toward corporate elites.
• The privatization of public services turned basic needs - healthcare, education, housing - into commodities, reinforcing the idea that economic success was a measure of personal virtue.

Under neoliberalism, poverty became a personal failing, while wealth became proof of superiority. This was not just an economic system - it was a legitimacy framework that dictated who deserved a stable life and who did not.

Trumpism and the Myth of Wealth as Merit

Donald Trump’s appeal was built on the legitimacy myth of wealth.

• His supporters did not just see him as a politician - they saw him as a successful businessman who “earned” his power.
• His self-branding as a billionaire reinforced the idea that economic success was a marker of legitimacy, despite his history of failed ventures, bankruptcies, and fraud.
• His policies - tax cuts for the rich, corporate deregulation, and attacks on social welfare programs - were designed to further entrench hierarchy-based economic legitimacy.

Trumpism weaponized economic resentment against fairness-based legitimacy, blaming social programs, marginalized communities, and “woke” policies for economic struggles while protecting wealthy elites from scrutiny.

Economic Legitimacy as a Tool for Social Exclusion

Economic legitimacy is not just about wealth - it is about who is allowed access to a stable and dignified life.

• Redlining and housing discrimination denied Black communities access to generational wealth.
• Gender pay gaps and workplace discrimination ensured that women remained economically dependent.
• Attacks on social safety nets framed poverty as a moral failing rather than a systemic issue.

The belief that some people are inherently more deserving of wealth and security is a core pillar of hierarchy-based legitimacy. It is why:

• Minimum wage increases are framed as handouts rather than fair compensation.
• Student debt forgiveness is attacked as undeserved rather than a corrective measure.
• Universal healthcare is dismissed as socialism rather than a basic right.

These are not just policy disagreements - they are legitimacy battles over who deserves economic security and who does not.

The Future of Economic Legitimacy

The legitimacy war over economic power is intensifying.

• If fairness-based legitimacy prevails, wealth will be seen as a shared resource rather than a marker of superiority, leading to stronger labor protections, progressive taxation, and universal public services.
• If hierarchy-based legitimacy prevails, economic power will continue to concentrate in the hands of the elite, reinforcing structural barriers that keep marginalized groups in poverty.

Like all legitimacy battles, this is not just about economics - it is about power, morality, and the future of justice itself.

Further Reading

¹ Milton Friedman, Capitalism and Freedom (1962) – A foundational neoliberal text justifying economic hierarchy-based legitimacy.
² Thomas Piketty, Capital in the Twenty-First Century (2013) – Analyzes how wealth concentration reinforces structural inequality.
³ Nancy Fraser, Fortunes of Feminism (2013) – Connects economic legitimacy to gender and racial justice struggles.
⁴ Keeanga-Yamahtta Taylor, Race for Profit (2019) – Examines how racial exclusion from economic legitimacy persists in housing and finance.
⁵ Stephanie Kelton, The Deficit Myth (2020) – Challenges the idea that government spending must be constrained by hierarchy-based economic legitimacy.