Thursday, May 07, 2009


As long as it is possible for differences in outcomes (i.e. there are both rich and poor people in society), there will be winners and losers. People have differing skills, talents, work ethics, education, opportunities, and a little luck. Some people are uncomfortable with inequality, and extreme inequality is bad for society; if only a very few control all the profits, then the standard of living for society at large will be harmed,

The only option other than differences in outcomes is that everyone is poor. So guaranteeing similar results would be bad for society. The main role governments should strive to fill is to make sure there is equality of opportunity. Equality on the front end is actually possible, while equality on the back end is impossible without spreading misery equally.

Equality on the front end means people can obtain education, avoid discrimination, and that the broader economy is growing so that there are ample jobs to replace those displaced by economic “creative destruction.”