He’s contriving a solution for a non-existent problem.
If we wait until income inequality is much more severe, we will have a whole class of new superrich who will probably feel entitled to their wealth and will have the means to defend their interest. That’s already gone far enough. We shouldn’t let it become more extreme.
They are entitled to their wealth in the same way you’re entitled to your vapid opinion. Does having a nobel prize make you the arbiter of how much wealth is fair, or how it should be appropriated? Good intentions is the alibi of evil. Wealth inequality is here to stay, but there’s nothing we can or should do about it, nor does it pose a threat to the economy. The left wishes it did but, again, there is no empirical evidence it does. Shiller’s opinions reflect his own wishful thinking about how the economy should run in his warped leftist world versus how it actually does. The yearning for crisis and an overseer that will mitigate the crisis by spreading wealth is a fantasy of the left.