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Income Inequality

Same topic, different views

By Tim Baldwin and Joe Carbonari

By Tim Baldwin

Rand Paul recently stated that income inequality is caused by people working harder or selling more products than others. While this is true sometimes, the American experience proves there are other reasons out of the worker’s control. Here are some.

(1) The global economy causes workers to lose to foreign employees and increases for corporate elites. (2) Technology’s increase puts higher demand for highly skilled and educated workers and in some cases, machines. The rapidity at which this happens leaves many workers “in the dust.” (3) Mass immigration of low-skilled workers reduces opportunities and wages for low skill American workers. (4) Upward mobility is limited, but changing a career too late in life, however, may be too risky, which causes people to remain with lower earnings. (5) Cost of living varies depending on location. Some areas, like Kalispell, have low earning potential but high living cost. (6) Employers’ prejudices can cause income inequality in certain races, etc. (7) Children whose parents undermined education’s need are often stuck with low-income careers they would have never otherwise chosen had they become educated. (8) Invention and production require large amounts of capital. Without it, there is no way to compete with other producers. Persons born poor are at a serious disadvantage from the start.

Paul’s campaign may benefit more by recognizing the struggles people have for no fault of their own and offering solutions instead of blaming laziness.


 

By Joe Carbonari

Rand Paul suggests that if you work harder, you will do better. Some say it is luck that really counts. Arnold Palmer offered that the more he practiced the luckier he got.

I think most people are OK with inequality as long as their own lives are improving. If, however, they feel that the system is working against them, that the deck is stacked, that the fix is in … effort and enthusiasm wane.

Opportunity is the key – the opportunity to get ahead in life, by following the rules and putting in the effort. We want the relationship between effort and reward to be predictable and positive. For many, it is not.

Let’s un-stack the deck. Let’s spend some money on our roads, our bridges, on education, on research. We need these things and we have workers who need these jobs.

We all have the responsibility to work. Our leadership has the responsibility to create and maintain that opportunity. We have the responsibility to select and support appropriate leadership. Rand Paul does not appear to be prepared for the leadership role that he seeks.

The same might be said of several others. Ted Cruz, Rick Perry, and Donald Trump come quickly to mind. Let’s stop pretending that these candidates, as decent and talented as some may be, are seriously of the caliber required. Whom we elect does make a difference.