> “People ought to be entitled to what they create” is not a universally accepted principle
Yes, in the society and economy we are discussing this is a universally accepted principle.
Bob is a farmer. He has the same amount of land as his neighbor, but he works twice as hard, and grows twice the number of crops to sell in a year. He has twice the income. No one would reasonably claim that he's entitled to none of what he produced. Bob's greater productivity than his neighbor is a source of income inequality - he earns twice as much!
There is a mainstream view that society has the right to tax Bob's income, so he does not receive all of what he creates. That's the debate: how much is fair? Maybe it's fair for Bob to have twice the income of his neighbor, or maybe less than twice as much. Unless Bob gets the same as his neighbor, there's income inequality because of differences in productivity.
No farmer is going to singlehandedly earn a million times what his neighbor earns. However, because of technology, this is now possible in some industries. For example, Notch is a game designer, and he singlehandedly makes a game that sells 20 million copies. Notch now has a vast income that far exceeds the typical game designer. Is this bad? What is bad about 20 million people choosing to give Notch their money in exchange for his game? I don't see anything wrong or unjust about this.
PG's essay points out that income inequality is a complex phenomenon, with multiple causes, some that are good (small groups or individuals creating amazingly valuable things) and some that are bad ("kids with no chance of reaching their potential"). PG's essay from my perspective serves to make the point that perhaps not all income equality is bad, and that there deserves to be more thought on the topic of "how much is bad?" or "what causes of income inequality are bad?", instead of treating income inequality as a one-dimensional issue that is intrinsically bad.
From my perspective, PG's point is fair. Income inequality is not intrinsically bad: when people work hard, improve, and become more productive, they earn more, leading to income inequality. This incentive to improve and produce is good, in my opinion. Perhaps what we as a society should be tackling are bad problems like "kids with no chance of reaching their potential", rather than considering income inequality to be a problem ipso facto.
I am not sure this analogy illuminates differences in productivity and resulting inequality as described. If everyone on earth had the same equal piece of land then it can be argued that the tax rate (as property taxes are) would not be on the income but fixed on the basis of the size of the land. So whatever Bob gets out of his land he would pay the same fixed amount of tax that Tom does.
But in the real world we are not born equal and we do not have access to the same size of 'land'. There are differences, sometime vast in family wealth, property, health care, education and access to nearly 'n' number of resources. Bob may be born with the land and have 'n' amount of time and the luxury to think of things like productivity, wealth, interests, life while Tom may struggle his entire life just to survive or maybe work towards getting 1/10 of the land as his entire life goal.
Moving to the real world property taxes are not fixed on income. Income tax is an entirely different tax that Bob and Tom would pay based on their income irrespective of their land holdings. If Bob is more productive he would pay more tax but I am not sure income tax or 'simple productivity' as a concept is useful to understand or explain inequality and disparity in a world where everyone does not have the same piece of land.
None of those PG communicates with believe that all income inequality is bad.
This is exactly one of the main problem with the essay. He argues against a position only very very few people really have. But it goes further than that.
PG is right claiming that you can't stop how technology creates inequality. But he is wrong if he believe that this wealth is created purely from risk taking and hard work. Of course those who are wealthy mostly work hard, but so does everyone else.
But the real issue of course is that if we can't stop technology to keep pushing wealth for some into extremes and for others to keep stalling then the wealth created is mostly due to luck and access to the right people and some timing. Not unlike a Powerball ticket but just of being born into the right context.
And so if PG wanted to show he actually understood the issue.
Instead of arguing against some straw man he could have spent some time on using his otherwise amazing ability, to think out of the box, to put forward some thoughts on how society could deal with this. Then he would have at least shown some understanding of the people he was talking about.
Instead he basically says. It's going to continue like this, but don't worry it's better than the alternatives and it's going to be good again.
Why would anyone who doesn't stand to benefit from this ever accept such a position?
I just don't see PG's thoughts as well developed here as they are in other areas and no amount of historical context is going to change that.
Yes, in the society and economy we are discussing this is a universally accepted principle.
Bob is a farmer. He has the same amount of land as his neighbor, but he works twice as hard, and grows twice the number of crops to sell in a year. He has twice the income. No one would reasonably claim that he's entitled to none of what he produced. Bob's greater productivity than his neighbor is a source of income inequality - he earns twice as much!
There is a mainstream view that society has the right to tax Bob's income, so he does not receive all of what he creates. That's the debate: how much is fair? Maybe it's fair for Bob to have twice the income of his neighbor, or maybe less than twice as much. Unless Bob gets the same as his neighbor, there's income inequality because of differences in productivity.
No farmer is going to singlehandedly earn a million times what his neighbor earns. However, because of technology, this is now possible in some industries. For example, Notch is a game designer, and he singlehandedly makes a game that sells 20 million copies. Notch now has a vast income that far exceeds the typical game designer. Is this bad? What is bad about 20 million people choosing to give Notch their money in exchange for his game? I don't see anything wrong or unjust about this.
PG's essay points out that income inequality is a complex phenomenon, with multiple causes, some that are good (small groups or individuals creating amazingly valuable things) and some that are bad ("kids with no chance of reaching their potential"). PG's essay from my perspective serves to make the point that perhaps not all income equality is bad, and that there deserves to be more thought on the topic of "how much is bad?" or "what causes of income inequality are bad?", instead of treating income inequality as a one-dimensional issue that is intrinsically bad.
From my perspective, PG's point is fair. Income inequality is not intrinsically bad: when people work hard, improve, and become more productive, they earn more, leading to income inequality. This incentive to improve and produce is good, in my opinion. Perhaps what we as a society should be tackling are bad problems like "kids with no chance of reaching their potential", rather than considering income inequality to be a problem ipso facto.