Worrying About Income Inequality is Stupid
Zack Kanter
156

OK, so, in your imagination, one company’s labor costs (assuming you provided total cost of labor figures) is $2.1M and in the second scenario the labor cost is $0.3M.

Seems like you are talking about two different companies because if you were talking about the same company then there is an outstanding $1.8M that could go to employees (which in your imagination there are just two: the CEO and the one subordinate), shareholders, or reinvested in the capital of the company.

Well, imagine this scenario: The CEO is paid $1.26M, and the employee is paid $0.84M. Which means the CEO is paid 1.5x as much as the employee.

This seems more equitable, right? It definitely seems more reasonable. And as far as any of this imagination-stuff has anything to do with your statement that the relative measure of income inequality, “has no effect on your spending power or lifestyle whatsoever.” That seems ridiculous because your imaginary scenario actually doesn’t have anything to do with what people can afford like: Education, housing, transportation, and insurance. You’re simply talking about what people can earn.

You then go on to state that “if you spend your life focusing only on what you have compared to other people, you are never going to be happy.” Well, you started the post with a quantitative measure about income and you ended it with a qualitative measure about happiness, as if you were using the numbers to justify the sentiment you hold.

But who are you to decide what defines happiness? Maybe in your imaginary scenario the employee making $0.1M wants to have kids and go to graduate school, maybe that would make the employee happy and they can’t on that salary alone (meanwhile affording rent and health insurance — because in your scenario they would not qualify for employee-sponsored health insurance). You have no idea what defines happiness and it’s not enough to just “organize and rally behind that goal.” Because organizations, rallies, and goals are matters or forms of discussions, which you also say, “is just a distraction.” Like your post, just a distraction, pointless.

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