Income Inequality

How should we approach the issue of income inequality? That is a question that Joe Carter addresses in his commentary, “What Every Christian Should Know About Income Inequality.”

He argues, for example, that the existence of income inequality “is generally a sign of a fair distribution of incomes.” If everyone earned the same, we would assume that someone was fiddling with the system and ignoring such factors as experience, productivity, and work ethic.

He also shows that both low and high rates of income inequality can be signs of unfairness. Economists use a measure of income inequality known as the Gini coefficient. Both Bangladesh and the Netherlands have the same Gini index, even though there is a vast difference between the two countries. Per capita income is $1,693 in Bangladesh and $42,183 in the Netherlands.

Carter believes that “measures of income inequality are meaningless because incomes are not zero-sum.” In a free market that is open and provides opportunities, the economic pie is not fixed but usually expanding. Consider the difference in income between Bill Gates and you. The success of Bill Gates came not from taking money away from other people but from creating wealth both for himself and millions of other people.

As Christians we should also check our attitudes about income inequality and government’s redistribution of income. Is our concern about these economic issues motivated by justice and fairness or by greed and envy? Some academic studies have shown (using thought experiments) that even if you could “reduce the level of income inequality, it would not reduce the level of envy for our neighbor’s wealth.” If people think they deserve more, they will still be envious

Carter concludes that Christians should be concerned about the well-being of the poor and be for the creation of conditions that lead to greater human flourishing for all our neighbors. Focusing on income inequality does neither

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