Thursday, April 19, 2007

Economic Inequality: Process and Results

http://www.capmag.com/article.asp?ID=4803
... many people erroneously use income inequality as a measure of fairness. Income is a result. As such, results cannot establish whether there is fairness or justice.
... For the most part, income is a result of one's productivity and the value that people place on that productivity. Far more important than income inequality, there is productivity inequality. That suggests that if there's anything to be done about income inequality, we should focus on how to give people greater capacity in serving their fellow man, and we should make sure there's a climate of peaceable, voluntary exchange.
A good lesson about the real reasons why some people have a greater income than others (they create more value), and a very plain argument for why redistribution of income is morally unjustifiable.

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