Those who harp about “inequality” will talk themselves hoarse over the election season to come, insisting that the gaming of our economic system is the only explanation why some grow very rich and many do not. Just like the poor, class envy will be with us always
According to “Labor’s agenda for tackling inequality,” the Growing Together report, “inequality is at a 75-year high.” Nonsense is immortal in the hands of the left. A fundamental law of capitalism which, heretofore, has received little recognition or exposure is the antidote.
I flirted with calling it Smith’s Law but if it were any good no doubt a somewhat better-know Smith, Adam, would be mis-assigned the credit. Mind you, Smith is such a commonplace name that pseudonymity would probably be suspected. Some years’ ago I got into a heated wrangle on the Liverpool FC website about the worth of the then-coach and was accused by one of my antagonists of hiding behind the obvious pen name of Peter Smith. He clearly regarded my name as akin to Joseph Blow or Donald Duck. So modest sensibly prevails and I will just call it ‘the fundamental or inbuilt law’.
There is a heap of talk these days about rising inequality. It will no doubt be a central issue in the US elections and would be the only issue of note for socialist Bernie Sanders in the highly unlikely event he were to win the Democratic nomination. Jeremy Corbyn is on board the Bernie bandwagon as, without a shadow of doubt, is Labor’s Andrew Leigh (Battlers and Billionaires).
Thomas Piketty, Capitalism in the Twenty-First Century, gave the issue (as specious as it is) a literary boost. My review, “The Questionable Equations of Thomas Piketty” in the June, 2014, issue of Quadrant, did a fair job (British understatement) of exposing the flaws in his arguments.
Recall that the Occupy Wall Street movement began in 2011; inspired, in part, by the focus that Piketty and a colleague, Emmanuel Saez, had earlier given to the wealth and income of the so-called “one per cent”. Piketty and Saez were by no means alone. For example, Nobel laureate Joseph Stiglitz (“Of the 1%, by the1%, for the 1%”) is one among a number of prominent ‘socialist economists’ (in itself, by the way, a contradiction in terms) who gave the issue a kick-along.