This is a short blog with a simple lesson in economics.
If you watch the News, then you know that most are seriously concerned about the "unfair" differences in income. The big difference between high earners and low earners is "bad"! I am here to point out the it may not be "bad".
Take the example of an economic model where 100% of all manufacturing jobs paid exactly the same. There would be no people making more than others in the manufacturing area. For many, they think that is good, but let me show you that it is not. Take a person who just got out of high school and got a manufacturing job that paid $20 per hour. After he has acquired more skill and was more valuable to their employer, he was still paid $20 per hour. You have to ask, "Why would a person what to gain more skills and make themselves more valuable"? They wouldn't!
If the difference between skilled and unskilled was "greater", it would be an incentive for people to gain more skill and make themselves more valuable. Isn't that what everyone wants to be able to do? In a socialism economic system where everyone earns the same, you can bet that it will be a low productive system where the players are poorer than they would have been had they had a competitive capitalistic economic system.
The bottom line is that a system based on "merit" is the only one that is really "fair"!
PS--Why do most people go to college? It is to make themselves worth more so they can move up the economic ladder. What if there was no economic ladder? That is what liberals want.
If you watch the News, then you know that most are seriously concerned about the "unfair" differences in income. The big difference between high earners and low earners is "bad"! I am here to point out the it may not be "bad".
Take the example of an economic model where 100% of all manufacturing jobs paid exactly the same. There would be no people making more than others in the manufacturing area. For many, they think that is good, but let me show you that it is not. Take a person who just got out of high school and got a manufacturing job that paid $20 per hour. After he has acquired more skill and was more valuable to their employer, he was still paid $20 per hour. You have to ask, "Why would a person what to gain more skills and make themselves more valuable"? They wouldn't!
If the difference between skilled and unskilled was "greater", it would be an incentive for people to gain more skill and make themselves more valuable. Isn't that what everyone wants to be able to do? In a socialism economic system where everyone earns the same, you can bet that it will be a low productive system where the players are poorer than they would have been had they had a competitive capitalistic economic system.
The bottom line is that a system based on "merit" is the only one that is really "fair"!
PS--Why do most people go to college? It is to make themselves worth more so they can move up the economic ladder. What if there was no economic ladder? That is what liberals want.
