From Pi to Pie, opportunities = ♾
“Most economic fallacies derive from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another.” Milton Friedman
Instead of assuming that there is only one fixed pie for which we all should be fighting for; let produce even more pies to satisfy everybody… That’s what economics and the economy are about: finding efficient ways to make scarce or limited resources available to meet everybody needs! Innovations in technologies and business models can multiply pies for everyone’s needs… The real challenge is about managing greed and waste in creating, trading and consuming wealth (assets, goods & services) for everybody…
Of course, efficiency in economics and the economy applies to all limited resources! We know now that the ecosystem resources are limited too. By finding efficient ways that optimize their use while eliminating waste in producing, trading and consuming wealth (assets, goods & services); we can set up a human society that is fair enough for everybody…
The attitude of ordinary people, leaders and the entire society about this simple factual evidence from the pie allegory determines the creation of wealth and its fair distribution within a society… Before setting up any fair distribution of wealth; you should first be able to ensure its fair creation. When you kill the fair creation and the fair distribution of wealth; you end up by setting up the equality of misery, violence and chaos: the Great Leveler!
Equality should shape the process of wealth creation while equity should shape its fair distribution; this means that:
- 1) every entrepreneurial, professional or artistic talent should be given equal chance and equal opportunities in accessing services such as education, healthcare, government support and capital financing to create wealth;
- 2) everyone within the economy should be included in the fair distribution of wealth and growth while recognizing the talents as merits of those succeeding in creating wealth. Equality is part of the process while equity is part of the outcome.
- 3) The Principle of «Equal Justice Under Law» is the best illustration of the Principle of Equality of processes and Equity of the result. In fact, equal enforcement of legal and impartial procedures and proceedings of justice to everyone doesn’t exclude a fair sentencing in the indictment that takes in account circumstances and the context of the actions of those under prosecution.
A human society driven by Equality and Justice, which means a fair society, ensures equality of chance and opportunities to each and every talent in creating wealth; and equity to each and every human being in enjoying the outcome of wealth creation.
Equality means that every talent is provided with equal access to government support such as education, healthcare, affordable housing, capital financing and all services that they need in creating wealth through their ventures, professions, artistic creations and other ones. Equity means that fairness in the distribution of wealth doesn’t deny the reward of talent as merit in creating wealth. To achieve a more fair society; equality should shape the process while equity the outcome.
