The left decries income inequality. That want economic justice…whatever that is. What gets under their skin is that some people are abundantly rich while others struggle. In a lefties ideal world, everyone is equal and shares.
In a thriving economy, the rich get richer. When opportunities are abundant and capital is accessible, those with the drive, knowledge and balls can create unimaginable wealth. This leads to greater inequality, but it’s not a bad thing. Conversely, recessions take a toll on the risk takers and business owners.
Megan McArdle explains it this way:
Crises destroy capital, and top incomes tend to be more tightly linked to capital than those of average workers. If you work for a wire factory that goes bankrupt, you may well have a rough year or two before you find another job, and your income may never fully recover. But if you own that factory, it will be years before you have an income even close to what you enjoyed before–and it’s very possible that you’ll never get there at all.
And this is exactly what we are seeing in our current economic downturn. Here’s a chart to illustrate the point.
I think Bill Gates and Steve Jobs making billions is a good thing. I count myself in the 99% that the Occupy Wall Street crowd claims to represent, but would rather go back to greater income inequality because it is better for me, my family and my neighbors.
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[...] if following up to my earlier post about wishing for income equality, Dennis Prager writes: Being on the left means that you divide [...]