by Paige Shaw
An unequal society where the upper class holds more of the country’s wealth is considered unfair. In countries such as the United States, the wealthy hold approximately eighty percent of the country’s wealth, and not enough the wealth being taxed from the rich is transferred to the poor. In countries such as Sweden and Denmark, although the distribution of wealth is more equal compared to the U.S., the wealthy still hold a greater percentage of the countries wealth.
Is this still unfair? Objectively, since not all of the classes are equal, it is still unfair. However, I would argue that having a slight inequality between the classes keeps people motivated and is overall better for the economy. People should receive equal opportunities and that everyone should be equal to an extent, but complete equality seems unfeasible.
From a fairly young age we are taught by our parents and in school that everyone is their own individual, and everyone has something about them that makes them unique. Gender, race, and other things aside, you are still different than the person next to you because there is only one of you. So if everyone is different, doesn’t that make it difficult to create a society where everyone is equal?
In his article “Is equality feasible?” Lane Kenworthy mentions that peoples earnings are determined qualities such as intelligence, creativity, confidence, inherited wealth, physical and social skills, and motivation. Most, if not all, are products of genetics, parents’ assets, and traits. We are all inherently different, and we all have our own strengths and weakness, which can make us more capable at performing certain tasks than others. In an equal society where everyone gets paid the same, if one person is a harder worker and better at a certain job than the person beside them, but they are still getting paid the same, it could make them feel less motivated to do their job. Of course there are certain cases that if you loved your job that it wouldn’t matter how much you get paid as long as you could keep doing what you are doing, but the slight inequality between workers keeps people motivated and increases their work effort.
Inequalities are what makes business competitive and drives the economy. And although a completely equal society is an appealing idea, it is not sustainable. In order to pay equally high wages businesses would have to charge their customers more. But in a competitive market, customers will generally refuse to pay more for a good or service when they can get it more cheaply somewhere else. The firm then loses business and has to start letting workers go. Therefore unless wages are lower, which implies some inequality, jobs will not exist.
However it is hard to say whether or not a completely equal society could be good or bad for the economy. It is my general opinion that we need to have that little bit of inequality in order to keep people and markets competitive to drive the economy. It can also be argued that income inequality could decrease consumer demand, and the middle/lower classes may regard high inequality as excessively unfair, causing a decrease in employment motivation and work cooperation.
Complete equality may not be sustainable but too much inequality could also prove to be unsustainable as well. Countries like Sweden and Denmark set a good example of a good balance between equality and inequality. There is still an upper class but more of the countries wealth is transferred to the poor. If more countries adapted a similar system it could prove to be more sustainable.
Kenworthy, Lane. 2007. “Is Equality Feasible?” Contexts 6(3):28-32.