In response to a recent post concerning recommendations from economist Joseph Stiglitz, Rick wrote: “It should not be the policy of the United States government to reduce inequality. That is not an enumerated power.”
It is American democracy’s right and obligation to create laws and structures so that America will have the best chance of fulfilling its mission: “liberty and justice for all.”
But which comes first — liberty or justice?
For the development of American history, in my view, it would have been better if Patrick Henry would have emphasized justice, rather than liberty and would have promulgated the idea: “Give me justice or give me death.” Liberty has remained a driving force of American political thinking. But, when we start with the idea that justice must come first — that Justice Is A Prerequisite For Liberty — then we arrive at a philosophy of government, very different then the philosophy that starts with the idea that liberty comes first.
Although “liberty and justice for all” is our nation’s mission, we are far from realizing that ideal. The problem is, both liberty and justice cost money and in the U.S., a lot of people simply don’t have enough money. We have liberty to freely travel, for example, but, without money to pay for traveling expense, such liberty is irrelevant. We have liberty to enjoy good medical care, but it takes money to do so. We have liberty to seek justice within our legal system, but again, money is important to the whole process.
Since sufficient money is essential in order for an American citizen to enjoy “liberty and justice,” then a good question our democracy must ask and must answer is: How should Our Society Be Best Organized So That All Citizens Have Access To Sufficient Money?
A reasonable goal is that government should be helpful, via its power to tax and make regulations, in creating a system where all citizens have a good chance of sufficient money to enjoy “liberty and justice.” Yes, if the least economically successful among us are raised up, then inequality is reduced. If the economic middle is strengthened then opportunities and goods previously only available to the wealthy become within reach of many more. Inequality is reduced. If government can implement structure to create such a system, then, in a democracy, it would seem obligated to do so.
The motive for raising up the bottom or strengthening the middle does not come from class envy and to suggest that those who seek a fair society are motivated by envy amounts to an ad hominem argument. The motive is to make our society work to accomplish its mission: “Liberty and justice for all.” The reduction of inequality is not the point, the reduction of inequality is a by-product of a better, a more successful, a more just society.
If a person holds to the principle that the U.S. government should not seek to advance policies that help to more evenly distribute wealth, then the most generous assumption is not that the person is indifferent to suffering or injustice, but, rather, that the person feels that the solution to inequality is through the market and through individual initiative. The second most generous assumption is that the person has irrational views — hatred of government, etc. — guided by an irrational belief system.
I recently bookmarked an article in the The American Prospect that said:
Just as serfs once accepted that their position was allotted to them by a divine order, today’s growing inequality in wealth is considered acceptable if it is the outcome decreed by the ideal, uncorrupted free market.Progressives must make it clear that they support the premise of fair compensation for the contributions of each individual, but dispute the notion that fairness is best achieved by an extreme laissez-faire version of capitalism.
I like the thought that the religion of the free market is used to justify the enslavement of the serfs of today just like religion was used to justify the enslavement of the serfs 500 years ago. Arguably, the irrational reverence shown to “the market” can be explained as evidence of indoctrination, the direct result of the relentless propaganda advanced by the oligarchy.
This religion of the free market advances the belief that given enough freedom, the market will produce a prosperous nation “with liberty and justice for all.” Regardless that this belief has been discredited by much evidence throughout history, it is interesting that millions, to their own disadvantage, continue to hold to this irrational belief as a matter of faith.
The founding fathers, I’m sure, would have been horrified to think that the provisions outlined in the 16th Amendment would ever be part of the constitution. But the right of government to impose a system of progressive income taxation is now fully constitutional. When Eisenhower was president the top income tax rate was 91%. Think of that. After earning enough millions, for every additional million earned, in Eisenhower’s time the taxpayer kept $90,000 and handed $910,000 to the government.
It would be interesting to find congressional testimony that justified the imposition of such a confiscatory tax rate. I wonder if such testimony would reveal that the motive for such a radical tax policy was, in fact, driven by envy of the rich, rather than driven by a rational theory of how to create an economy where everyone is successful.
In conclusion, I agree “reducing inequality” is a poor guiding principle for public policy, and so I agree with the proposition — “The U.S. Government Should Not Advance Policies Aimed At Reducing Inequality.”
However, I support the proposition: The U.S. Government Should Advance Policies Aimed At Empowering “Liberty and Justice For All.” In other words, I support the idea that our government should advance policies whose purpose is to increase income to all of its citizens so that every citizen can fully enjoy liberty and justice. When successful, the by-product of these policies would be a reduction in inequality, but even if these policies were fully successful there would remain enormous differences in the wealth of individual citizens.