Some factors of income inequality stem from background.
Being a child of a doctor, businessman or lawyer significantly and positively affect someone’s future success. That’s the fact, and I’m not gonna negate it.
Given the same starting points, people can differ too. Sometimes it boils down to intelligence. You can be incredibly smart and then all kinds of careers are for you. You can be an architect, a programmer, a manager, a doctor, a lawyer. You will then prime your kids in a good direction – if you also make a good job raising them.
But what about people that are equally smart, and not equally rich? There are additional factors in play of course:
- Choice of occupation. If you decide to become a worker in a more commercially valuable branch of economy, where you are highly mobile, you are set.
- Grit and perseverance. Some people become satisfied with the income of their 9 to 5 job, and come to house to have a rest. Some others not – they will work for their-selves in their private time, even on weekend and vacation.
- Spending and investment. Some people prefer spending their money on luxuries. They will buy elegant clothes, go to parties and concerts. Some of them like alcohol and drugs more than the other…. and some buy gold, stocks, bonds, real estate, cryptocurrencies, and are not afraid to waste time on writing blogs, learning to record videos, or trying to start a side business.
- Luck. Some people just win, by coming into contact with influential mentors, or by getting a good client, who pays much more than average.
Is it fair to punish more lucky for their luck? Maybe… but is it fair to punish more disciplined people for their discipline? Or punish savers for their savings? Absolutely not!
And this is what socialism does. All the time.