Tuesday, March 5, 2013

Change the rules or change the game? American inequality

It is startling to see the wealth inequality in America and to note that America has one of the fastest growing GINI coefficients in the world, i.e. it is becoming more unequal faster than most other countries.  I know all about inequality, after all my home country, South Africa, is without a doubt one of the most unequal societies on earth.  But just like South Africa's inequality is no mistake, it appears to me that America's inequality too is by design ... but perhaps not in a way that Americans would be happy to admit.

In America, inequality is acceptable.  It is even desirable.  In fact, it is designed into society.  Let me explain.

America has embraced the idea of competition ... everything is a competition - reality shows, obsession with competitive sport, grading systems from the time kids are born, ranking tables and top 10's for almost everything.  Competition is seen as good.  Winners are celebrated and revered.  And what creates inequality other than consistent winners and consistent losers.

The complaints about America's inequality doesn't seem to be about inequality at all, rather it is about envy.  No-one is calling for a change to the economic system.  I haven't heard many calls for socialism which is one of the most effective ways to eliminate or temper widespread inequality.  So competition is good, winners are good, wealth is good, as long as I am the one with the wealth.  It is not the shape of the distribution curve which seems to be the problem but the population distribution across the curve, i.e. who stands where across the wealth distribution. 

What has the political and societal response been?  Change the rules of the game, i.e. punish the winners and patronise the losers.  This creates a perverse game where vigorous competition is encouraged then at the end of the game some of the winners medals are taken from the winners and given to the losers.  With these rules everyone loses.  So what is needed?  Not to change the rules of this old game but to create a new game! 

A game where competition isn't everything.  Where the goal is not to produce winners and losers.  A game that does not advantage some and disadvantage others.  A game that does not produce the inequality that is so undesirable.  Are Americans ready to experiment with creating such a game? A game that will not just distribute wealth more equitably but more importantly, ensure that dignity is maximised for all citizens.  Such a game could be the saviour of America's soul and be the greatest export ever.  


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