Saturday, December 17, 2016

#Inequality - And What Fighting It Means

Liberals love to complain about how inequality is bad for society and that we need to do something about it, but many free-market types would tell you that inequality is good. They'll say that a meritocracy will inevitably result in inequality because some people will naturally work harder than others and make more money. And those who have more money and goods will incentivize those who don't to work harder. Economic equality, they'll say, is socialism!

So let's talk about what being against economic inequality is about. For most on the Left, fighting economic inequality doesn't mean that we use government to make everyone's income equal no matter that they do or how hard they work. It's also not about implementing a maximum wage, or just taxing the wealthy into poverty.

Being against economic inequality is recognizing we have rigged political and economic systems that cater mostly to the needs of the wealthy and elite and as a result the total amount of wealth and wealth accumulation in the world is increasingly going to a smaller and smaller class of people at the very top of societies. This top-heavy concentration of wealth is bad because as the lower and middle classes maintain less wealth, they have less purchasing power to drive their economies. Creating economic policies that cater to the lower and middle classes that allow them to receive and retain more of the wealth generated will give them greater purchasing power which will better drive the world's economies, and this will secure better living standards for the vast majority of people.

Image: Suisse Global Wealth Databook 2016

Consider that the top .7% of the world's population now owns 45.6% of the world's wealth according to this new graph done by Credit Suisse. Less than 1% owns nearly have the wealth on the planet. 73% of the people on the planet have less than $10,000 and their total amount of that wealth is just 2.4%. The wealthy have rigged the systems in almost every country to favor themselves and they do so in such a way that reduces or stagnates wealth accumulation in the lower and middle classes. Fighting to change this system around the world is what fighting economic inequality is.

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