Progressives and the Politics of Envy
Ronald Bailey | August 24, 2007, 2:47pm
For a Liberty Fund conference on "The Anti-Capitalistic Mentality," I've been reading selections from Envy: A Theory of Social Behaviour (1966) by sociologist Helmut Schoeck. Schoeck cites a 1954 article from The Economist which asks the intriguing question:
Would it be a hardship, or an injustice, if, while everybody had plenty, some people had more than plenty? If £3,000 a year, say, were the minimum income, would it be monstrous if some people had £30,000, or £300,000?
The egalitarians apparently think it would be monstrous. Ask them why, and they reply with that noble bromide "social justice." But this is merely a politician's periphrasis for "envy." Social justice is a semantic fraud from the same stable as People's Democracy. It means that when everybody has plenty it is right to hate people who have more.
Now lots of people in the past have proposed establishing a guaranteed minimum income in the United States including President Richard Nixon. Economics Nobelist Milton Friedman suggested a negative income tax which would have operated somewhat like today's Earned Income Tax Credit.
So just as a thought experiment--setting aside the very real problems of work disincentives, administration, and tax rates--here's the question: If every individual American was guaranteed an income of $40,000 annually (indexed perpetually for inflation), would it be a hardship or an injustice if some Americans earned $400,000, or $4 million, or $400 million per year?
Discuss.
Paul | August 24, 2007, 6:51pm | #
The point of the star trek analogy was to point out poverty deals with limited ammounts of scarce goods. But what if those ammounts are no longer limited?
*sigh*
Ok, people, gather 'round, and listen very, very carefully.
A long long time ago, on this very planet, there was a time when very very few people had any material goods. As the world became more industrialised, more and more poor people (in these industrialized nations) have access to more and more material "wealth". Now, I'm not going to go into a dissertation on the difference between money and wealth, because then you'll have to sign up for my 200 level class.
Anyhoo...
There are very poor people, in this country, right now, as we speak who have 1: enough to eat (see obesity crisis amongst nations poor) 2: probably drive a car, 3: might even own a cell phone. Yet, they are, by all reasonable accounts, poor. I see and work around them every single day.
The point that's being horribly missed, stephen the goldberger is that poverty IS based on relative wealth, and nothing else.
In the ancient world that I described above, who is poor amongst a group of people that live in mud huts, have no medical care, and move nomadically with the rains and herds? Who is poor where cars haven't yet been invented, and the only mode of transport is by foot, or animal? It's the guy who doesn't have a mud hut, that's poor. It's the guy who doesn't have a pack animal, that's poor. It's the guy who only has a pack animal, but doesn't have a covered wagon, that's poor.
So, to abandon this subject of nano-technology machines, Star Trek, and distant galaxies and turn this battleship around back to the subject of a $40,000 minimum wage for all citizens, the guy who only has $40,000 is poor. The guy who has $400,000,000,000,000,000,000,000,000 is rich.
But if you insist on making analogies with literary flights of fancy (see: Star Trek), read a book called "The Diamond Age" by Neal Stephenson where such devices existed. Guess what: his made-up world was full of poor people. I tend to think that Neal Stephenson had a more realistic picture of what life would be like if you could push a button and could make a "free" widget.
Fluffy | August 24, 2007, 8:08pm | #
"So what if you don't own property, have no savings, are new in town, and don't have a valuable skill or product?
Do the four rich guys have any power over you?"
The proper question is STILL whether they would have MORE or LESS "power" in a libertarian system, or a system where political leaders routinely intervene in economic affairs.
The 4 rich guys can attempt to convince everyone in town to blackball me from employment. It's harder to do that if the labor market is free and I can undercut the other laborers in town to get my foot in the door if that's necessary. It's harder to do that if the market for goods and services is free and I can turn my car into a taxi without buying a medallion, or start a dog grooming business without a license, or start a child care business without a license. It's much, much easier to simply dominate local politics to close all these avenues off to me than it is to do it with pure economic power.
And you can continue to handicap the person in the example by making them too incompetent to do any of the things I mentioned, or any similar things. But at that point I have to say - if you're so completely fucked up that you have nothing to contribute to anyone anywhere, how exactly are you EXPECTING to not be in a position of dependence? It's not the rich guys that have "power" over you then, it's your own lameness.
Joe -
The Constitution did a pretty good job for a while, before the two Roosevelts fucked it over. And it could be improved. The striking thing about the history of the scandals that marked, say, the Grant administration is how extremely petty they are compared to the systemic rent-seeking we see today in, for example, all real estate development nationwide.
And if my failure to buy your labor is a "harm" I'm imposing on you, why isn't your failure to buy my product a "harm" you're imposing on me?
Mr Nice Guy | August 24, 2007, 9:52pm | #
Carrick, we might be equivocating here. You of course believe that government should be policing fairness, you even say "The role of government must be limited to enforcing the rules." So you recognize a set of behaviors that would be "unfair" that government should prevent or address. If I bopped you on the head and took your property I bet you'd think government could come and rectify this unfairness.
Now you might want to claim that inequality resulting from one guy taking something from another is morally different than ineuqality resulting from one guy being given a ton by his dad and another being shafted by his. I mean, that first guy didn;t ask to get bopped on the head and robbed, but you know, the other guy did not ask to have a crappy day (and the rich guy did not do anything to deserve the rich dad). So I'm not convinced that the inherited millionaire is not an unfair one. I might go as far with you to say that it may be one of the unfair situations that government should probably stay out of trying to fix (for example Selma Hayeks refusal to let me ball her till she walks funny).
"If they give it to their worthless loafer son, it stays fair." Fluffy, I'm gonna have to call for a reason to justify that assertion, because it strikes me as not only odd, but that it would strike most people as odd. Not odd that a person should have the right to leave whatever inheritance they rightly make to whoever. But wrong that guy x is twenty times richer simply because of who his daddy was. He did nothing to "deserve" to have a rich daddy, hence he did nothing to "deserve" to have his daddy's largesse. Sure, he was plainly lucky, but luck don't usually=deserve in most people's moral calculus.
Imagine you are in a soap box derby, where each contestant will be pushed by his father. You line up with your average sized, hard working father, and your opponent lines up with Lou Ferrigno in his early days pushing. He creams you because his dad pushed waaay harder. Now of course these things happen, life's not always fair, yadayda. But was that race between you two fair in any way? Heck, if the race had been between the two fathers that would be more likely fair (unless we want to talk of Lou's luckily superior genetics or, ahem, enhancement). But the pushes were unequal, they were arbitrary (in the sense that each person did not get the push the "deserved" relative to their efforts, desire, etc.) and therfore unfair under any conceptual understanding of that word I'm familiar with...