Sep

29


We, by nature are not equal, we are not similar, we, each of us individuals, represents a distinct personality. We not only differ in shapes, sizes, looks and other physical aspects, we also differ in the abilities. Not everyone is equally talented, ambitious, hardworking or prudent and so on. Obviously, the more intelligent and prudent person with higher ambitions, better talent “if is free” to work as hard, honest and devotedly as he can, will surely gain more success in producing, earning and accumulating more wealth than a person with lesser intelligence, ambition and will to do honest hard work.

Egalitarianism against Causality

Causality is the very base of success or failure thus, in a free society; economic equality emerges as the outcome of different individuals performing different degrees of economic causation. Opposition and abolition of economic inequality thus, is obviously against all connections between an individual’s hard work and the result of his efforts, it is abolition of causality in incurring of income by the individual.1
In a group of ten people determined to share equally all the income earned by them if one of the person works harder or innovates a way to increase total earning by X amount, his increase in personal earning will merely be 1-tenth of X. If the group consists of 100 people, his increase will be 1-hundreth of X, and if the group is as big as 1 billion, his total increase in earning will be 1 billionth of X. Obviously, it would be such an insignificant amount that he would never get any incentive of all his hard work. It is also to be noted that in such egalitarian society, no significant connection can exist between what an individual produce and what he or any other particular individual receives. That is, even though the total amount of group would be increased by X amount, the overall increase in each individual’s income would be insignificant. Thus, egalitarianism destroys ability of many individuals to achieve progress and development that are of any significance to anyone.

Egalitarianism against Progress

Any compulsion on an individual to improve his own family’s life only insofar as he improves the life and standard of everyone else in the society or country make all of the society or country impoverished. Egalitarianism would certainly provide incentives to not to do any work or improvement as after doing all hard work, an individual will get a meagre increase of 1 billionth in his personal income, if he won’t do any work, his meagre reduction in personal income would be 1 billionth, again an insignificant figure. Thus, increasing one’s production would not be of any significant benefit for anyone and decreasing the work would not be of any significant loss to anyone. Hence, everyone would have an incentive to do nothing.
Equality of income obviously is against freedom2 as it is “forced labour” because it eliminates the earning of increment in income as an incentive. If people are to work without the incentives of profits, the only way to make them work is using force. Other than income or profits, there are positive incentives for work, such as the enjoyment of the work itself. Yet, as a matter of fact, most of the jobs are such where the incentive of enjoyment of doing work is closely related with the incentive of income. No one makes bricks, sweeps streets, clears drainage system, makes shoes, mines coal or even work as a CEO of a company for the enjoyment of work without considering the significance of income. Even in artistic works like painting, singing or writing, the pleasure of doing work only would not be sufficient to induce amount and quality of work that can be induced in free-society providing income incentives for doing work.

Egalitarianism against Innovations and entrepreneurship

Free society or equal society, these women are always going to be there, its just in a free society they earn much more.There can be exceptional cases of individuals able to achieve significant results in the improvement of whole society. A great scientist, innovator or businessperson can increase the production and incur the development so greatly that whole country, in fact whole world can perceive the benefits of his success. Yet, such exceptions do not provide any possibility for the practicability of egalitarianism. The scientist achieves the intellectual satisfaction of making his discoveries and that is the highest achievement for him, but inventors do require the prospects of sufficient material gains in absence of which, they will not devote the time and effort and would not go through the expenses necessary for making an invention, discovery or innovation possible. Often entrepreneurs actually implement the works of scientists and innovators to actually cause the benefit of masses. Businessmen invokes scientists and inventors to work and invent by investing in the research works and promising incentives, they search out and perfect the inventions.
Entrepreneurs will not be investing in any research if there will not be incentives to make a fortune on behalf of their work and investment, furthermore, if the businesspersons were not allowed to accumulate wealth, they would hardly be able to invest anything for researches, development and inventions. Thus, the basic of great minds actually being able to work and produce any significant amount of development in common persons life is very much dependent on the presence of economic inequality, in absence of which, that is in an egalitarian society, the innovations and inventions would be extremely difficult or rare.

Egalitarianism resulting in Forced Economic Inequality

Often as the failure of bringing egalitarian ideal in practice, socialist regimes results in bringing forced economic inequalities within the society, which is obviously inimical to progress and economic production. Such inequalities results in because of governmental actions such as taxation, subsidies, licensing system, special privileges, quotas and reservations etc. Government’s establishment of such inequalities results in depriving the producers of a significant part of their incentives to work and produce, furthermore, actions like quotas, reservations and licensing system obviously violates the freedom of individuals to produce, hence reduces the production significantly bringing in poverty and chaos. Other governmental acts like corporate taxes etc. appropriates the income of producers and thereby decreases their capacity to invest in production and developments. Such arbitrary economic inequality produced thus deprives the producers of possibility to produce anything by means of monopolistic restrictions against their entry in various streams of production. On the other hand, by giving special privileges, licenses, quotas and reservations to others, government rewards non-producers or less-efficient producers. All of this results in economic chaos. Same things happen in feudalistic systems. The forced economic inequality based on government coercion results in economic destruction.

Free Economic Inequality versus Forced Economic Inequality

Economic inequality based on freedom of individuals to exploit their own intelligence and talent is significantly less visible than the economic inequality that results because of forced planning or government coercion. This is because of the fact that economic inequality based on economic freedom serves to raise the standard of living of all, As a result, in a free society, even the poorest individuals enjoys and consumes substantially increasing quantity of wealth. On the other hand, in feudalistic or socialist regimes, as the very basic power of production and development is reduced to significant degrees, the width of economic inequality becomes too much visible with the poorest suffering starvations and penury while the officials, bureaucrats and politicians enjoying material wealth.
Before 1991, when India accepted the path of liberalization, Indian society was suffering with extreme forced economic inequalities where the standard of living of common man was substantially low graded. With the induction of liberalization movement, not only the production and development of Indian society increased, but also the standard of living of common man also improved significantly. This exactly was the result of loosening the force economic inequality trends and letting the inequalities develop freely, which obviously are less visible.
In further freer societies such as United States, an economic inequality that is based on economic freedom and capitalism are further less visible. The fact is greater freedom results in greater prosperity of whole society and less extreme width of economic inequalities.

  1. An explanation of this phenomenal truth is here “The story of Socialism, Public Welfare, and Brain Drain” []
  2. Meaning of Freedom []


6 Responses to “Freedom versus Egalitarianism”

  1. Karma Says:

    Causality is the very base of success or failure thus, in a free society; economic equality emerges as the outcome of different individuals performing different degrees of economic causation.

    I guess there is a typing mistake. It should be
    Causality is the very base of success or failure thus, in a free society; economic inequality emerges as the outcome of different individuals performing different degrees of economic causation.

    about the extreme inequalities in socialist systems, and lessr inequalities in free-market system, it is dependent on the fact that every person seeks more profits and materialistic achievements naturally. Thus, often people chase for jobs/streams of production providing higher incomes/wages/profits, while peole in jobs of lower profits tends to get accumulated in higher income jobs, the supply of labour in such jobs increases often more than the demand, and that lead to decrease in wages/profits of such jobs, while because of lack of workers/labours in those jobs which initially were providing lower incomes, the demand of workers in such production sectors/jobs increases and hence increases the wages of those jobs.
    Thus it is very natural in a free-market that economic inequality become lesser and further lesser visible because wages in different sets of jobs tends to reach an equillibrium under the natural free-market forces of demand and supply.

  2. Unpretentious Diva Says:

    Yep, it was a typing mistake.

  3. Gaurav Says:

    Egalitarianism as a notion is nothing but a tool to create disciples, It is quite worth understanding to note first and foremost , we as a conscious self are not a beliver of egalitarianism , the whole notion has been sieved into us merely to make a disgruntled race , an effort by few super egotist to rule the ids , courtesy sigmund freud and aristotle for those terms. We are prejudiced people depending upon various factors, emotional intimacy topping the charts for such behaviour. Courtesy aristotle , whom i don’t want to quote ,egalitarian notion has been plundered throughout centuries to creat a psychic dimantling of thyself. Now money is one of the most approving example of human fortitude , which quite understandably has been marked a curse by all the institutes, organization and individual who harnessed their existence on the terms of mysticism , divine beings and other supra-natural phenomenons. Hence they always tried to reject economic might , subjecting it to an entity for the collective and not any individual. Quite applauding the fact is that the anti-individualists have handled the money episode so well that today people think all feudalism , imperialisms and other such isms are seen as an effect of Money thing.The remarkable fact is that cognition as blessed to us has very vuluntary whims , which can resign under circumstances, but it can’t be tamed ,so, how many years it will take even i don’t know but the destiny of sociological evolution of human beings is to achieve a Completely Individualistic society and that’s bound to happen.

  4. shumit Says:

    Gargi, your article seems to essentially be a statement against quotas and government or other reservation policies. It’s also a smack to the face of the politically correct brigade to some extent, who seem to think that everybody should have the right to do everything, regardless of actual ability.

    This reminds me of a media frenzy that was created a couple of years back in the UK when Prince Charles of the British Royal Family stated that people should be refused for positions if they are not capable of performing well in that position. Obviously the whole media and therefore all of the mindless tabloid-slaves jumped on that statement calling the Prince a liar, prejudiced, elitist etc.

    What he meant was that people who fail to prove that they are capable of performing well in a job should not be hired. He did not say that people can never do well or shouldn’t be allowed to try, but he stated the obvious in that employers should have the right to hire only the people that are most capable of doing the job.

    However, in some situations, there really does need to be a strict consideration of politcal correctness and equality. An example being the equal treatment of employees in the workplace, protecting workers from prejudice, racism, and bias against sex, gender, ethnicity, background and other qualities that are irrelevant to the job in question. Too many countries around the world turn a blind eye to the abuse of employees and workers in the name of smooth running and efficiency (ie. higher profit margins).

    Until people themselves refuse to be part of a clearly biased system then the system will continue to function – and worse still – this concept of ‘freedom’ will never become a reality.

  5. Mixed Economy or Interventionism | Reason for Liberty Says:

    [...] than the economic inequality that results because of forced planning or government coercion, Freedom Versus Egalitarianism [↩]What really are Taxes, Reason for Liberty [↩]Laissez-Fairre Free market capitalism [...]

  6. Abolition of Cost is Cause of Corruption | Reason for Liberty Says:

    [...] amongst the citizens that proves to be more drastic than the natural inequality of free system, Freedom Versus Egalitarianism [↩]Socialized system turns to Common Minimum Program, The story of Socialism, Public Welfare [...]

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