Income Distribution

by

One of the complaints—and indeed, the only complaint—that leftists have about free societies and the incredible wealth it creates for the poor is that the poor are so much poorer than the rich compared to countries with far less freedom.

You’ll hear about “income disparity” or “the rich are too rich” or something like that.

It’s all nonsense.

Let me describe why in three easy arguments.

1. You have a choice to live as poor in Country A or Country B. In both countries, everything is exactly the same, even the income gap between the rich and the poor, but only proportionally. That means that in Country A, the rich make $1,000,000,000 a year and the poor only make $1,000,000 a year, making the income gap almost $1,000,000,000. In Country B, the rich only make $1,000,000 a year while the poor make $1,000 a year, making the income gap $1,000,000. Where would you rather be poor?

2. Say you had a choice to live as poor in Country A or Country B. In Country A, the poor make $50,000 a year, while the rich make billions, making it terribly unfair. In Country B, there are no rich—everyone makes only $10,000 a year. Where would you rather be poor?

3. Say you had a choice to live as poor in Country A or Country B. In Country A, the poor make nothing. Yes, they live off of whatever scraps fall from the table of the rich or whatever they donate to charity out of the goodness of their hearts. Or you could try and find a job doing something the rich need done, and you’d be compensated only a fraction of what the service as actually worth. However, the rich are extremely wealthy, making billions of dollars a year. In Country B, everything is equal, and all income is redistributed. The income is a whopping $100,000 per person per year. Where would you rather live?

My point is that simple envy does not justify income redistribution.

My point is also that I would rather live as a flower in a forest than a blade of grass in a desert. Having extremely wealthy people around means that there is hope that I can at least achieve millions. There is also hope that they will share a tiny fraction of their wealth with me, either as a charitable donation or as a salary or as an investment in my business.

If anything, the fact that the top N% of our country earns that top M% of all income doesn’t bother me. I really don’t mind that my neighbors are multi-millionaires or billionaires or trying to scrape by like I am.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: