We are bombarded regularly with narratives touting the
ravaging effects of income inequality in capitalist societies. For
many, inequality is the signature economic story of the twentieth
century and must be averted at all costs. But inequality is only
problematic when it’s the culmination of corrupt policies that grant
favors to privileged groups. In reality, market-driven inequality is the
source of unbridled progress.
Markets, by vetting the quality of ideas, reward talented and
insightful individuals for responding to consumer demands. Unlike
government-mandated privileges, markets are impartial observers of
value. Political connections are unnecessary for players to succeed in
the free market; only a willingness to employ one’s talents to serve
consumers will reap success.
However, because some people are more talented than others, markets
will invariably produce inequality. Yet inequalities are likely to
result in positive outcomes due to a talented individual’s ability to improve average
people’s living standards. Most people lack the ability to
revolutionize society, but luckily for ordinary people, gifted
individuals’ pursuits set off economic and technological changes that
can boost long-term economic growth and often create opportunities for average people to join elite circles.
Amazon made Jeff Bezos a wealthy man, but the entity also transformed thousands of small businesses into lucrative ventures
by providing a place for them to market their products to the globe. In
fact, through its store, the company has launched 40,000 millionaires.
Amazon’s ripple effect is so significant that it has even made its
affiliates’ customers widely successful, as Celinne Dacosta points out
in her feature on Rasmus and Christian Mikkelsen:
“Rasmus and Christian Mikkelsen are twin brothers who
quickly became pioneers in the Amazon book and Audiobook publishing
space, having collectively released over 150 books. The growing industry
motivated the twins to co-found PublishingLife.com,
an online education business that helps ordinary people escape their
9-to-5. With the use of the twins’ Amazon book publishing business
model, hundreds of people have been able to achieve life-changing
results. To date, their students have made a combined $20 million in
verified earnings.”
Without “talent inequality,” supercompanies like Amazon and Google
would not exist, and there would be fewer outlets for average people to
create wealth. Inequality
is beneficial to society, because if we were all equal, the world would
be remarkably mediocre. Culturally, this world would be bereft of
artistic and literary wonders, since people would be incapable of rising
to the level of William Shakespeare or Pablo Picasso.
Our understanding of science would equally be warped in the absence
of minds like Galileo Galilei, Isaac Newton, and Albert Einstein.
Unfortunately, life in this realm of mediocrity would be nasty, brutish,
and short. Dying from simple ailments would be the order of the day,
considering that society would lack people with the curiosity and talent
of men like Louis Pasteur and Alexander Fleming, who revolutionized our
approach to treating diseases.
Even more sinister is that the absence of extraordinary people would
fail to trigger the benign envy that usually motivates people to improve
their circumstances.
Without inequality, there can be no progress, because its absence
suggests that we are all equally talented. And if this is the case, then
the creativity required to advance society cannot emerge.
Never forget that when all men are equally competent, no man can be
excellent. As such, a truly equal society is one where we are all
similarly mediocre and living a life that’s below humanity’s potential.
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