Thursday, October 27, 2011

The paradox of inequality (income)

There is a movement in the USSA for the issue of what has been the business of top 1 percent of wealthy people for the rest of the population.

I am more than reminded of the great 1955 essay by Von Mises on “Inequality ofWealth and Income”. Some excerpts: 
  • Inequality of wealth and incomes is an essential feature of the market economy. It is the implement that makes the consumers supreme in giving them the power to force all those engaged in production to comply with their orders. It forces all those engaged in production to the utmost exertion in the service of the consumers. It makes competition work. He who best serves the consumers profits most and accumulates riches. 

  • country enjoys the highest standard of living ever known in history because for several generations no attempts were made toward "equalization" and "redistribution." Inequality of wealth and incomes is the cause of the masses' well-being, not the cause of anybody's distress. Where there is a "lower degree of inequality," there is necessarily a lower standard of living of the masses. 

  • There is no use in fooling ourselves. Our present taxation policy is headed toward a complete equalization of wealth and incomes and thereby toward socialism. This trend can be reversed only by the cognition of the role that profit and loss and the resulting inequality of wealth and incomes play in the operation of the market economy.


  1. "Occupy Wall Street" (OWS) protest is against the rich people who have acquired wealth unethically by taking help of politicians. Mostly the wall street bankers. I am sure they are not against someone like Steve Jobs or Bill Gates.

    Definitely these people could not have been able to make money in FREE MARKET.

  2. whoever may this Anonymous, go and read the article on "Let's talk of inequality"

  3. Those banks and other firms got bailed out by US Government using TAX Payers money. What did those bankers do with that money? They gave big bonuses to themselves.

    That's why I said that only people like Steve Jobs or Bill Gates can make money, other losers will be wiped out.

    Very few OWS protesters actually understand that it is Government who is responsible for inequality and not market. I am not in favor taxing rich. Inequality of wealth and income is greatest incentive for innovation in FREE MARKET.