Friday, December 30, 2022

Wage Inequality Will Always Exist: Inequality And Poverty Are Two Different Concepts: My Comment To WSJ Article, "Wage Inequality May Be Starting to Reverse"

My posted comment to The Wall Street Journal article, "Wage Inequality May Be Starting to Reverse: Remote work, deglobalization, stalled technology have started eroding some advantages of higher-skilled workers. The question is whether it will last." by Greg Ip:
Inequality doesn’t mean you have no food; no home; no access to medical care; no indoor plumbing; no cellphone; no flatscreen tv; no opportunity for schooling for your children. Inequality and poverty are two different concepts. Inequality means there are some people that have more expensive versions than other people. Inequality measurements are used as motivation to create government dependencies; to increase taxes on the rich; to redistribute income and wealth. Inequality will always exist because wages are not age and skill adjusted. Someone just starting out will earn less than the other worker who has worked for 10, 20, 30 years and developed skills, experience and achieved wage raises and promotions. Someone working part-time will make less than someone working full time. Someone choosing to work at a non profit will usually make less than someone working for a non-government profit making company. Inequality measurements in today’s society are an attempt to motivate the citizenry to accept a socialist agenda of government income redistribution. Unfortunately, the more socialistic an economy becomes, the slower the growth rate of the economy and the poorer the nation and future generations become over time compared to a capitalistic entrepreneurial society.

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