Hi. I’m Gareth McCaughan. I’ve been a consistent reader and occasional commenter since the Overcoming Bias days. My LW username is “gjm” (not “Gjm” despite the wiki software’s preference for that capitalization). Elsewehere I generally go by one of “g”, “gjm”, or “gjm11”. The URL listed here is for my website and blog, neither of which has been substantially updated for several years. I live near Cambridge (UK) and work for Hewlett-Packard (who acquired the company that acquired what remained of the small company I used to work for, after they were acquired by someone else). My business cards say “mathematician” but in practice my work is a mixture of simulation, data analysis, algorithm design, software development, problem-solving, and whatever random engineering no one else is doing. I am married and have a daughter born in mid-2006. The best way to contact me is by email: firstname dot lastname at pobox dot com. I am happy to be emailed out of the blue by interesting people. If you are an LW regular you are probably an interesting person in the relevant sense even if you think you aren’t.
If you’re wondering why some of my very old posts and comments are at surprisingly negative scores, it’s because for some time I was the favourite target of old-LW’s resident neoreactionary troll, sockpuppeteer and mass-downvoter.
On your specific example:
It’s plausible that a typical Harry Potter fan gets at least $1 worth in value from having one of the books or watching one of the movies. But in a hypothetical world where JKR never exists, I think that typical Potter fan is a fan of something else instead. They read a different book, watch a different movie. Maybe they get a bit less enjoyment from it than from the corresponding Harry Potter thing back in our world—after all, in that world they chose Harry Potter over the other thing. But maybe not; which books/movies/songs/… turn out to be big successes seems to owe a lot to luck. At any rate, I don’t think we can credit Rowling with all the value the fans get from her work.
Also, the process by which a Harry Potter fan gets value from Rowling’s work doesn’t only involve them and Rowling. The book probably got significantly improved by the editors (at least, the first few books did, before JKR got big enough to ignore their good advice). The movies needed actors and directors and film crews. Books and movies alike needed distributing and selling.
On the broader point of whether the reason for rising inequality is that we have “a smaller fraction of people producing a greater fraction of value”:
First of all, what causes inequality is a smaller fraction of people capturing a greater fraction of value, and it sure looks like that’s a thing that’s happening; e.g., CEO salaries have become much higher relative to those of their employees, and it’s far from obvious to me that much of the value is being created by the CEO rather than the employees. Second, even if it’s true that fewer people are producing a greater fraction of the value, that isn’t necessarily a matter of the few Very Greatest Value-Producers doing their thing more effectively; it could equally be that there are lots of roughly equally good value-producers, and today’s market dynamics are more ruthless about picking a few basically at random and making them the ones everyone’s heard of, who therefore get all the profits. It’s then true that those few people are the ones providing the value, but all the others could have done just as good a job if they’d been the ones to get lucky instead.
Third, inequality occurs at different scales. There’s the inequality of the super-rich versus everyone else; here you give the example of Rowling, though most of the richest people are owners of businesses rather than creators of art and entertainment. But there’s also inequality between broader groups. Rich nations versus poor ones. Rich industries versus poor ones. Bosses versus minions. My understanding is that these sorts of inequality have increased too, and it’s not obvious that it’s for the reasons you describe.
On the overarching point of whether rising inequality is actually bad:
It’s certainly possible for something to happen that increases inequality but is good overall. If the world gets much richer and the gains are very unevenly distributed, this might be a net improvement. But I don’t think you can just gesture at that situation, say “look, this is better overall”, and conclude that inequality isn’t a problem! There are two separable things there, the increase in wealth and the increase in inequality, and maybe the first is Just Good and the second is Just Bad and we merely got lucky that the first one outweighed the second. I think you need to ask questions like: is the increase in inequality an important part of why the increase in overall wealth happened? and: is there a way we could have less inequality while keeping most or all of the increase in wealth? -- and I don’t think these are easy questions to answer.
(BTW, I think it’s very clear that inequality-as-such has bad consequences, whether or not in a given case it’s bad when considered as part of the whole economic situation. It means big differences in political influence, which in turn means that the poorer people get more badly screwed than they would with less inequality. And it means, if compared with a more equal situation with the same total wealth level, less total utility because of decreasing marginal gains. And it means more envy and resentment, which means less social stability. Again, it may turn out that those are just prices that you have to pay for overall progress that helps everyone, but I think that needs more supporting arguments than just “look, the world is getting richer” or whatever. It certainly needs more than “look, I’ve identified an otherwise-benign thing that causes increasing inequality”; the problem with inequality is its consequences more than its causes.)