Inequality

Before talking about Walter E. Williams, let me just say what a breath of fresh air his columns are. I mean Williams is pretty nuts and I disagree with him on almost every issue; but at least he doesn't feel he needs to spend every column trashing Kerry. Instead Williams is going on about his normal business.

Plus Williams makes a rare good point today, although my application of it would be different than his. He spends most of his article discussing why we are willing to reward Shaq or Mel Gibson enormous sums of money, and not willing to give others money. He then concludes his article with this paragraph.

Far better good could be done for our fellow man by focusing more of our attention on productive inequality rather than income inequality. Income inequality is a result, and it's productive inequality that mostly explains that result rather than some insidious plot afoot. Whether it's individuals or countries, one seldom sees highly productive people poor or highly unproductive people rich unless there are government restrictions and subsidies at play. Making people more productive is the challenge. Whining about income inequality is a cop-out.

Mr. Williams is right in that the real problem is letting people be as productive. Where we would disagree, however, is what can be done to help people become more productive. Williams would place such responsibility entirely on the shoulders of the individual. I would place some of the responsibility on society. In other words, if a child isn't provided the tools to succeed, say by attending a loser high school, than that hurts us all. We, as a society, lose the potential of that child, and in fact, such children who grow up without the tools to succeed may turn against society through crime or drugs or weasel sniffing.

I will say there is some income inequality I think we as society do need to be concerned with. Mr. Williams is right when he says that millions want to see Shaq play, so he's worth millions. But when it comes to CEOs making six and seven figure salaries and providing little concrete to their employers than I have to say something is out of whack. As a stockholder myself, it bothers me that so much of our economy goes to pay people who's contributions to the companies they run (and sometimes ruin) seems nebulous at best. I'm not saying they shouldn't be well paid; I'm just saying their payment is out of proportion to what they contribute.