We Need More Inequality, Not Less
We are bombarded regularly with narratives touting the ravaging effects of income inequality in capitalist societies. For many, inequality is the signature economic story of the twentieth century and must be averted at all costs. But inequality is only problematic when it’s the culmination of corrupt policies that grant favors to privileged groups. In reality, market-driven inequality is the source of unbridled progress.
By vetting the quality of ideas, markets reward talented and insightful individuals for responding to consumer demands. Unlike government-mandated privileges, markets are impartial observers of value. Political connections are unnecessary for players to succeed in the free market; only a willingness to employ one’s talents to serve consumers will reap success.
However, since some people are more talented than others, markets will invariably produce inequality. Yet inequalities are likely to result in positive outcomes due to talented individuals’ ability to improve average people’s living standard. Most people lack the ability to revolutionize society,
Article from Mises Wire