Home

About Freedom

Freedom is the absence of oppression.

Primary links

  • Article archives
    • Recent articles
    • 2006
    • 2007
    • 2008
    • 2009
    • 2010
  • Guestbook
  • Links
  • Freedom Writers
  • Newsletters
    • 02-01-2010
    • 02-10-2010
    • 02-14-2010
    • 02-21-2010
    • 02-26-2010
  • About us
    • Contact Us
    • Site Map
    • Privacy
  • Logout
Home Blogs djmclaughlin's blog

User login

  • Create new account
  • Request new password

Invite a friend

Recommend About Freedom to:

Recent blog posts

  • Prejudice and Reality
  • Too Much History
  • Universal Homecare
  • Another Man's Treasure
  • Cooperation Versus Central Planning
  • A Template for Action
  • Anti-Intellectual versus Anti-Arrogance
  • Cigarettes, Alcohol, Twinkiies and Prohibition
  • Horatio Alger's Bootstraps
  • Celebrate and Remember
more

Newsletter

  • 01-21-2010

The Necessity of Income Inequality

Submitted by djmclaughlin on Thu, 01/07/2010 - 06:41

“All animals are equal, but some animals are more equal than others”. On the Animal Farm, the metaphor used by George Orwell to describe developments in the former Soviet Union, equality was the rallying cry, the ideal. The reality was very different there, as with every egalitarian society. Everyone is equal except for the ruling elite, those who make the rules, who hand out the goodies and the favors, who benefit from forcing equality on others.

In human society, equality of income is not natural, is not essential and is not even good. Income inequality is often equated with how badly the poor are doing. The presumption is that the more unequal the income or wealth, the more destitute the poor will be. That presumption is a tragic illusion. In many countries with significant income inequality, such as the United States, the poor are much better off than the vast majority of people on this planet.

Most people don’t stop to think about the striking implications of perfect of income equality. It means that the highly skilled surgeon would earn the same as a floor sweeper. The income of an unskilled ditch digger would equal that of the astrophysicist. The reward for a business owner who risks his house and home and his family life to invest in his dreams would be the same as a sluggard who didn’t have enough initiative to make it through high school.

Perfect income equality describes perfect socialism. As Orwell put it, however, the ruling elite would be more equal than others. Those societies will also, ultimately, end up with totalitarian government. Equality has to be enforced by a dictatorial government, and that equality will result in general deprivation for everyone.

People are not equal. Some have very brilliant intellect, some are outgoing and persuasive, some have physical power or stamina, and a host of other discriminating characteristics. When people use the skills they excel at, they become even better. For that very reason, the division of labor in a society causes a substantial increase in the well being of all of the people. When individuals are rewarded for their efforts, they naturally try harder, work longer, and get better at what they do.

In a situation where exceptional people get the same reward as laggards, they stop being exceptional. Their performance becomes average, at best, and the average declines. Competition and rewards spark effort and progress. The ability to improve one’s own situation leads to extra work, extra production and extra profitability. The ability to accumulate capital, to save for a rainy day, or for investments to make production easier, faster and more cost effective, increases wealth and drives the incredible innovation in a modern capitalist society.

The ideal situation in any society is not one where every person earns an equal income, but rather one where every person is able to reap the benefits of his or her efforts, without fear of confiscation. As people accumulate a certain amount of wealth, they are in a position to take care of themselves, their families and to engage in charity that was not possible before.

People often mistake the socialist, un-American concept of material equality with the truly American notion of equality before the law. True justice occurs when the rights of the individual are protected, where he or she is secure in life, liberty and property. Injustice arises where government or individuals take what is not theirs. The injustice of confiscation destroys the conditions that promote prosperity and progress. Voluntary charities are much more effective at providing charity than coercive government programs.

Some may argue that, in our mixed economy, the growing socialist tendencies of contemporary government have not hurt us much, we are still productive and wealthy. That is like saying that mixing water in gasoline doesn’t hurt the automobile. The car may still run, you may still get to where you want to go, but the more water in the gas, the rougher the engine will run. There will come a point when the engine just quits.

We, as a country, have a lot of water in the fuel. The collectivist mentality in government and among many people will cause the eventual breakdown of the engine. The size of government keeps growing and the freedom of the citizens keeps shrinking. Equality may be forced upon us by economic reality in the not too distant future. Like all egalitarian societies, the non-politicians among us will end up equal in poverty and despair.

  • djmclaughlin's blog
  • Login or register to post comments
Dependency is the death of freedom. Responsibility is it's flourishing.
RoopleTheme