Wednesday, December 28, 2011

This Practical Plan Solves Income Inequality

A Dec. 26th Associated Press story in the Providence Journal stated that President Obama and Mitt Romney both want to fix income inequality but by using different methods. The story didn’t ask whether income inequality is a problem or whether any president has the legal right to “fix” it. It is written as if income inequality is universally accepted as a problem that must be fixed. The occupiers and a variety of have-nots agree, demanding “We must close the wealth gap!”

Pretend with me for a minute that our country has no rule of law, no Constitution and the government forces everybody to put every cent of wealth into a big pot. Then it’s divided evenly by the number of people in the country and we all start tomorrow with the exact same amount of money. “Hooray! We’ve eliminated the wealth gap!” The politicians cheer, patting themselves on their backs.

Then what?
Then Senator Obama tries to convince Joe the Plumber that spreading wealth around by stealing it from some people and giving to others is "good for everybody." Americans largely ignore that this is illegal, unconstitutional, immoral and against any code of conduct an elected official would be expected to honor.

Some will go to Las Vegas and lose their “fair share” in the casino within minutes. Others will also go to Las Vegas and earn money working at a trade show. Some may start companies while others smoke crack in a back alley. Some will lend their money to a bank and instantly earn a miniscule amount of interest. Within minutes, we will once again be faced with gross income inequality and a widening wealth gap.

Then what?

Well, the only way to fix this is for the government to force everybody to put every cent of wealth into a big pot. Then it’s divided evenly by the number of people in the country and we all start over with the exact same amount of money. Some will go to Las Vegas and lose their “fair share” in the casino within minutes. Others will go to Las Vegas and earn money working at a trade show…etcetera, etcetera. You get the idea. Then once again faced with rising income inequality and a widening wealth gap, we’ll have no choice but to demand the government fix it by collecting our wealth in a big pot and handing it back.

As anyone can see, this very concept of income inequality is as ridiculous as the theft by force of government pushed as the solution. The very idea that everyone is supposed to earn the exact same amount of money regardless of his/her production or contribution to society cannot be more absurd. Does anyone in Green Bay truly believe that Aaron Rodgers and backup Matt Flynn should earn the same salary? Even the NFL Players Association union wouldn’t try to argue that case. If even unions agree the idea of income inequality is wrong for sports business then isn’t it wrong for every business?

Much is written promoting income inequality as a great evil but I haven’t found a compelling case for the virtues of its reverse: income equality. If one exists, please let me know. “When you spread the wealth around, it’s good for everybody,” as then Senator Obama said to Joe the Plumber, is not so compelling a case that it justifies stealing from one person to give it to someone else.  

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