The Failure of Forced Equality
One of the dominant features of history over the last century has been the repeated attempt by mankind to achieve a utopia of equality. The idea of forcing equality in income was advanced and popularized by Karl Marx, and this idea has been tried time and time again.
However, we have seen that this idea of forcing income equality has
failed time and time again. It failed for the Soviet Union when collectivization
resulted in a massive famine which killed millions. It
failed for Maoist China, when collectivization also resulted in the starvation
of tens of millions of people. More recently, the country of Venezuela has implemented
wealth redistribution policies, but this has resulted in mass violence, chaos,
and shortages of food and basic items of hygiene.
Laissez-Faire Economics and the Origin of Inequality
The other side of the ideological coin is laissez-faire
economics. The French phrase “laissez-faire” translates to “let do” in English,
which suggests that laissez-faire economics is let-do economics, or hands-off
economics. However, laissez-faire economics results in income inequality. Why?
The philosopher Jean-Jacques Rousseau, in his writing On the Origin of Inequality among Men ,
puts forth the idea that inequality derives from the ownership of property and
the difference of abilities and talents. He also said that man was the most
equal and innocent when they roamed by themselves and hunted. It seemed to me
that when we gain equality we lose progress, and when we gain progress we lose
equality.
Laissez-faire economics has also been practiced in many
instances throughout time. For example, US President Ronald Reagan cut taxes
during the beginning of his administration, in an effort to grow corporations
and increase the net wealth of the nation. However, critics of laissez-faire
economics point to the Reagan administration as the time when the wealth
disparity in the United States widened tremendously, and when the inflation-adjusted
wages of the middle class stagnated.
Specialization over Inequality
Inequality hurts, let’s face it. For me, it was always a hard
pill to swallow when I saw rich 18-year-old students driving their cars around
Heritage Halls, while I was without a car at 22 years old. Also, it was always
disheartening to see extroverted individuals get loads of success
while my relatively introverted lack of enthusiasm was a large factor in my paltry level of success. The proper response to a perceived inequality is
being grateful for the talents that we have been given, instead of envying the
perceived gifts, talents, and/or possessions of others.
The economist Adam Smith discussed specialization in his
work The Wealth of Nations, where he wrote:
“This advantage, however … will give a superiority to the country which enjoys
it, rather by depressing the industry and produce of other countries, than by
raising those of that particular country above what they would naturally rise
to in the case of a free trade.” By applying this principle of specialization
to our differing talents and abilities, we each can contribute something unique to the world,
better than many others can.
