The Compatibility of Freedom and Equality (13): More Income Equality Makes Us More Free

Another reason not to worry too much about the supposed incompatibility of equality and freedom is the fact that an equal level of monetary resources promotes freedom. Money in the form of a relatively decent income allows us to choose from and engage in a wide variety of activities. It makes it possible for us to buy the commodities and services we want to buy, and consequently do with them what we want to do. (Of course, within the legal limits that determine what can be commercially traded and how traded goods can be used; e.g. we can’t buy people, and we can’t use the guns we buy to kill people). As a result, we have a wider choice of life plans and more means to pursue our chosen plan.

This is freedom in one sense of the word: more choice. Freedom in another sense, namely the ability to do what we want without interference, looks absolutely anemic compared to this. After all, what good is the absence of interferes when the world we live in offers us only very few options or none of the monetary resources to choose and pursue options. This freedom from interference is hardly valuable, if it is freedom at all.

So, if we agree that monetary means promote freedom in a certain sense of the word because these means broaden our sets of choices, then I guess we’ll also agree that a more equal distribution of money, wealth and income promotes freedom: it gives people who receive more money in the new, more egalitarian distribution more freedom, without necessarily diminishing the freedom of those whose resources are diminished in the new distribution. The monetary freedom of the rich isn’t necessarily reduced after income redistribution and after reductions of income inequality, because of diminishing marginal utility. The ability to buy a fifth yacht doesn’t increase anyone’s freedom in any sense of the word. And taking away this ability doesn’t reduce anyone’s freedom. On the contrary, if the monetary means that could have been used for this fifth yacht are instead given to a number of other people who don’t have a lot of money, then these means will benefit the freedom of those other people, and aggregate freedom will have increased.

So that’s a good reason to reduce income inequality. However, it’s probably not a good reason to eliminate income inequality completely, for four reasons. First, even if, ideally, people have a right to the same extent of monetary freedom as it is defined here, that doesn’t mean they should have the same amount of money. In order to be able to do the same things and have the same choices, different people need different amounts of money. The handicapped, for instance, may need more than average.

The second problem with equal money is that it would mean deep and frequent violations of property rights, and property rights are important, perhaps just as important as freedom (and no, property rights and freedom are not the same thing: the former are a means to interfere with the freedom of others, namely the freedom of others to use goods that belong to you).

A third problem created by equal income is related to incentives. And finally, equal income doesn’t combine well with considerations of desert (one definition of desert is that people deserve different levels of monetary wealth for their contributions to society, culture etc.).

We could react to these different considerations by framing the issue as one of value pluralism: income equality and freedom are important values, and so are desert and property. The difficulty would then be to balance these different values which, it turns out, are sometimes contradictory. That would mean limiting the equalization of income at some point before total income equality, at a level that is compatible with respect for property rights (also limited), with due consideration of incentive problems (also limited), and with recognition of the moral value of desert (also limited).

There’s possibly some Gini value that would hit this balance. This Gini value of x gives a level of income inequality at which monetary freedom is maximized for a maximum number of people. A value lower than x (the lower the Gini value, the more equal the income distribution) resulting from higher levels of income redistribution would not increase the monetary freedom of the poor because the amount of money taken from the rich has become so high that it doesn’t just eat away at marginal utility but also produces disincentives high enough to reduce the size of total social wealth.

We could try this kind of delicate balancing between redistribution on the one hand and incentives produced by rewards for deserving actions on the other hand. (Alternatively, we could also drop income equality as a value and instead focus on a so-called sufficientarian approach in which we would try to give people enough monetary means to achieve a certain level of freedom – freedom as it is understood here – regardless of the means and freedom of the people at the top of the income or wealth distribution. However, I’ll leave that option aside for the moment).

However, there are some problems: we’re dealing here with a somewhat strange notion of freedom. Freedom is obviously much more than the use of monetary means to choose and pursue goals. Also, we don’t want to promote consumerism. The problem with consumerism is that the truly important parts of life can’t be bought, and that focusing on consumption tends to sideline those important parts. It also has ecological disadvantages.

And another problem I already mentioned: some people will be worse off if money is equalized because they need comparatively more money just to have the same capabilities. Hence, rather than equalizing money we should perhaps equalize capabilities.

More posts in this series are here. More on income inequality here. And here‘s a related post about the link between poverty and freedom.

Plato, Democracy, and “Human Rights” (4): Real Theoretical Life

(please read part 1, part 2 and part 3 first)

In the ideal Platonic society, led by thinking people who use force to train others to become like them, there will be wellbeing because spiritual life, free from the slavery of nature and desires, is the only good life. It means freedom, the satisfaction of knowledge, and peace because the desires and passions of people are the main reason for strife. Also other reasons for strife, such as scarcity, will be eliminated by a planning state taking care of population and birth control. The number of citizens will no longer cause scarcity, envy, territorial expansion and other reasons to go to war.

So Plato started from an initially attractive premise, the importance of a thinking life compared to consumerism, but then issued a whole range of proposals to protect and promote this life which invariably lead to dictatorship. In all this, he is perhaps the classic example of the way in which the combined hostility to nature, materialism and the plurality of society causes hatred for democracy.

But even his premise is questionable. Is solitary reflection of the general, free from appearances and the particular, really the road to wisdom? Perhaps it is more correct to say that sense perception, expression, and hence the use of one’s body and the interaction with other bodies is the best way to gain knowledge. Much of science is still very material, and discussion, argumentation, deliberation and the testing of opinions through expression and discussion protected by human rights can radically improve our opinions.

We need interaction and communication with other people in order to think correctly, and even to think at all. Would we think without our parents and teachers, without speaking and listening to anyone, without engaging in the world of appearances? And would we be able to think more or less correctly without public interaction protected by a democracy and human rights, without venturing in the bigger world of appearances and without leaving our own small and private group of people? Thinking needs the public use of reason (see also this post on Kant). Thoughts are not something you develop on your own, not even in some small and closed group. You first need to listen to as many freely expressed thoughts as possible in order to develop your own thoughts, and then you need to test your own thoughts in confrontation with others.

By making your thoughts public and thus submitting them to scrutiny and tests by other people – first and foremost submitting them to those who are not your private or personal friends, because they might be too kind for you or too like-minded – you are forced to say how you came to have these thoughts and to give an account of the reasons why you have these thoughts instead of others. This will force you to reflect on your reasons and arguments, and, if necessary, to look for better ones. Giving a public account of your reasoning, or knowing in advance that you will give this account, makes you very critical of yourself and helps you avoid mistakes. Nobody wants to make a fool of himself.

The world of appearances, so disliked by Plato for its volatility and imperfection, actually improves the quality of thoughts because of the range of sources of information and opinions, because of the a priori self-criticism that it promotes and because of the a posteriori testing and objecting by other and not necessarily like-minded people (a phenomenon well known in the scientific community).

Giving a public account of your reasoning and arguments, taking objections into account, putting yourself in the place of someone else, think like someone else, look at things from another side or perspective, act as if you hold a contrary point of view, all this is possible only when different perspectives and different points of view are freely expressed. Human rights can help to achieve this. Without human rights, many valuable points of view or perspectives will not be made public, and many valuable objections and counter-arguments will not be known to someone defending a certain thought or idea. This can diminish the quality of the thought or idea in question and therefore it is difficult to understand how a theoretical life can benefit from the elimination of the world of appearances.

Knowledge can hence be defined in a way which is completely different from the Platonic, passive, lonely, anti-social, introvert, non-discursive contemplation. More on the problem of knowledge and politics here.

Parts 1, 2 and 3