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by worik·11y ago·view on hn ↗
(a) How is it possible to say "if we can even call that a problem" re inequality?

(b) How is it possible to say inequality does not stem from capitalism? Where else could it stem from.

I am not advocating the abolition of capitalism, I advocate a mixed economy.

3 comments
(b) inequality is the natural course of matters, but it's hard to argue that free markets don't even out inequality by allowing people to trade down their comparative advantages for goods that others provide.

There is a disconnect between the colloquial form of capitalism which is conflated with 'free markets' and a generous reading of marx's concept of capitalism: as in "capital -ism", or the idea that accruing capital is a social good in and of itself. Note that capital-ism in the most general sense does include the concept of 'crony capitalism' whereas free-market-ism shuns 'crony capitalism'.

Crony capitalism aside, it is unclear if capitalism necessarily creates (more) inequality, although it does underpin a philosophical motive to drive individuals to extract the most from their competitive advantage, that doesn't mean they will be successful at it.

'Mixed economies', while they sound nice and centrist, I think, tend to be the worst. Ultimately, it creates a vehicle by which political comparative advantage, which is zero-sum, and coercive (if you don't follow the law you can be thrown in jail) to economic advantage, which more easily compounds.

(a) -

Person A is an upper class CEO living in the U.S. in the 1930s. He has a large mansion, a paid cook and other staff which care for the "menial stuff." It's likely his bank account will never drop below seven digits. Martian A is an explorer who travels the universe in the year 2430. When he's hungry he commands his computer to make him some food. Other of his needs are met with similar ease. Is Person A inequal from Martian A? Yes. Is one of their lifestyle's more desirable than the other? Perhaps, that's for the individual to say. Is it a problem? No.

(b) -

>Where else could it stem from

How about the fascist system of government which partners with businesses to provide them special perks? How about the Federal Reserve which creates new money which becomes first available to connected businesses and in turn they benefit the most? How about any number of regulations, including minimum wage which makes it unprofitable to hire low-skilled workers?

>How is it possible to say inequality does not stem from capitalism?

Prove that it does.

I really liked your point B. I think it is very well put and shines light in real problems, instead of just saying "Damn capitalism!".

I didn't liked your point A. Your comparison doesn't make any sense.

I gave an example of two individuals who were unequal--"Person A" and "Martian A". As best as I can tell, there is no problem with there being inequality between these two individuals.
Maybe inequality stems from the fact that people aren't equal in their strengths and weaknesses? If you could construct an ideal merit-based system you'd see quit a bit of inequality.
The problem with inequality in modern western "democracies" is not that people are not equal. The problem is that the inequalities are so stark and wide.

Campaigners against inequality (who are xampaigners for economic and social justice by and large) do not campaign to make every one "equal", but to make the spread smaller and the lives of those with the least less bleak.

I live in New Zealand which is a modern industrialised democracy and is quite wealthy. We have large sections of our population that are malnourished, inadequately housed, poorly educated and cut off from main stream society. The proportion of our population suffering so was much less in the years between the depression and the 1980s, during which a conscious effort was made by the state to maintain a high wage full employment economy.

The policies that worked then will not work now, but what we have is not working and is generating large costs and inefficiencies.

So it is irrelevant that "inequality stems from the fact that people aren't equal in their strengths and weaknesses". The conditions of the weakest and the degree to which the strongest can corral the resources is what counts

W

>The policies that worked then will not work now, but what we have is not working and is generating large costs and inefficiencies.

I see no evidence this is true.

For me economic inequality isn't a problem as long as people are equal under the law.