Economic equality is appealing. At least the theory. Everyone has the same income and wealth. But what will it result? Why is this message of equality so popular? For some, it is ideologically motivated. They consider equality true and honest justice.
Let’s have a look at why it is good that income inequality exists and happens.
1. Differences in the motivation to work
People have different reasons for doing economic valuable work. But there is a chance that they are different motivations. Is it pure money that people will work for? If you enjoy working with children then that is fine. But working with children is not bringing you any financial returns. If you are working as a civil servant you should always keep in mind that you are financed by those who work out of government financed people. So: next time when you wish a salary rise think about it that you ask more money from others. Is that fair?
2. Difference in value of economic production
Not all people are equal. The value of labour and financial decisions is different for every person. Is it fair that those who are producing and creating more economic value are receiving the same benefits as those who produce less? How fair is this?
If we look at those countries where everyone is created equal than we see something highly destructive. The government has a relatively large size of the economy in its hands. The destructive power of equality bought everywhere just poverty.
In my opinion, it doesn’t sound like a smart thing. Why not try something completely else. Something which bought wealth and welfare to everyone? Yes, let’s do this. Let’s go for economic freedom.