Earlier this week, Alexandria Ocasio-Cortez (D-N.Y.) lit a fire under the debate over wealth inequality. Her argument: many billionaires' fortunes are effectively subsidized by underpaid workers and public programs. That drew a sharp response from entrepreneur Palmer Luckey and an invitation from Alexis Ohanian to talk it out on his podcast.

AOC's Case: Wage Theft and Corporate Power

AOC took to X to argue that wage theft is one of the biggest forms of economic exploitation in America. Every year, she said, billions are effectively stolen from workers when corporations underpay them so badly that they end up relying on food stamps and Medicaid. That means taxpayers are indirectly subsidizing billionaire wealth.

"The point is less about individual morality," she wrote, pointing instead to monopoly power, rent-seeking, stock buybacks, and weak oversight. These forces, she argued, have created "shattering inequality" while working Americans struggle with housing, health care, and food costs.

Palmer Luckey Fires Back

Luckey, the founder of Oculus and Anduril, wasn't buying the broad brush. "The idea that all billionaires got their money by exploiting people doesn't hold up to scrutiny," he said. He pointed to J.K. Rowling as an example of someone who built a fortune by creating products people actually wanted to buy.

Alexis Ohanian Wants a Conversation

Ohanian, co-founder of Reddit Inc., jumped in with an invitation for AOC to join his podcast for a deeper discussion. She welcomed the chance, noting that many tech leaders take critiques too personally. Her concern, she said, is systemic inequality.

"Our current economic outcomes speak for themselves," AOC said. She argued that addressing abuse of power is essential to creating a fairer economy.

Meanwhile, the Economy Sends Mixed Signals

While the debate raged, new data showed the U.S. economy grew at a 2% annualized rate in the first quarter. That's an acceleration from the previous quarter's 0.5% pace, but it fell short of economists' 2.3% forecast.

Inflation, meanwhile, is picking up. The Federal Reserve's preferred price gauge — the Personal Consumption Expenditures index — rose 3.5% year over year in March, up from 2.8% in February. Higher gasoline costs tied to the Iran conflict pushed prices upward.

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