Economics: Are command economies the only way to achieve economic
equity? How could it be reached with other economies?
Equality is a funny
thing, maybe because no one can agree on what it is.
Economic equity
doesn't exist so long as private property exists. So, in order to achieve true
economic equity, we must first get rid of all private ownership or else some
people are bound to be more frugal while others are bound to spend while still
others are bound to be productive and make more money than others. And if
someone has more than someone else equity is broken.
But then we run into
other problems. Do we have wages? If so, does everyone make the same amount of
money? Well, invariably no, because if there were wages that means people would
have money and money is privately owned so there can be no wages. So, everyone
has to work because they want to or they're forced to, but no one will work for
money as there is no money being given for work.
However, if there
are no wages how will people live? Surely they need some way to get food and
shelter and clothes! Well, if we can't have wages we must have another way to
provide people with a way to get what they need. How can we do this without
private property? Well that's easy! Just give everyone the same thing! So,
everyone gets food, water, shelter, clothes, etc. But we have to be very
careful to give everyone the same quality good, shelter, clothes, etc. or else
there is no economic equity as some people would be more greatly rewarded than
others and that is not equal.
ohhh
oh, what if I'm a big boy and need lots of food? What if I have three kids and
need lots of clothes for them? What if we need lots of space for our big
family? Is that fair to the family that is smaller and gets less clothes and
food and shelter? Yes on average we may be equal but surely having
a bigger house shared with more loved ones is better than a smaller one with less? I
suppose we could make laws preventing big families from existing...
Wow we are doing
great! So far we have no wages, uniform families, no private possessions, and
overall equality!
However,
we aren't done yet. Why? Well, because an economy, even an economically equal
one, has to produce stuff or else it isn't an economy! And in order to produce stuff we
need people to work. And so far we have gotten rid of wages, private property,
and any possible excess material gain. So far everyone is receiving the same
amount of stuff. But... in an economy there are many different jobs to do. You
need fishermen, soldiers, artists, musicians, leaders, priests, teachers,
laborers, and so much more. And, inadvertently, some jobs are less intensive
than others. The teacher may have an easier go of it than a soldier or
fishermen. However, they are each given the same thing: the same food, shelter,
clothing, etc. But they aren't working equally. And surely if I have an easy
job and you have a hard one, there is no economic equity as we receive the same
things but I receive it for less effort.
Wow, yet another
problem! Does anyone have a solution for this one?
You do? Well then
how about non monetary benefits? A wage isn't the only perk of a job. Those with
privileges or respect get benefits that are worth something and so in effect
they are receiving more than others. That isn't fair! Maybe for the people whose
jobs earn them more respect than is normal we can take some of their food away?
Would that make them equal?
My point is that no
economy has economic equity. None really can and none really should. Sure, some
are more "equal" than others as the fake economy I described above
would indeed be more fair than a 1300s monarchy. But at what cost to growth, innovation,
enterprise?
By ensuring economic
equity we inhibit creativity, risk taking, speculation. And while this may be
okay for a little while it is that creativity and risk taking - often for the
purpose of monetary attainment - that makes huge impacts in the world we live.
Would Elon Musk have founded X.com without any monetary incentive? Would he be
in a position to then found SpaceX and turn around Tesla?
While economic
equity is something to consider, it is not something to solely care about. If
everyone has nothing we are all equal. But wouldn't you rather have some of us
have a REALLY lot and the rest of us only have a lot? Isn't that better than
all of us equally having a little?
To answer your
question, there really is no economic equity, only the pursuit and approachment
of it. And further pursuit of equity, after a certain point, comes at huge cost
in innovation and economic growth.
If you
want any system that may offer pure economic equity you won't find one, even in
a command economy. If you want a system that offers both growth and some extent
of "non-pure" equity, I would suggest looking more into mixed market
economies that err on the side of heavy taxation and even minimum income laws.
Europe - Belgium, Finland, Denmark in particular List of countries by tax rates see the link below
Source: Quora
Thanking you,
Nagarjuna reddy.
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