This is a very controversial topic and we do not not claim to know or will discuss all of the points associated with it. We just want to put in our two cents from what we have seen/read/experienced so far in our lifetime. While there may be some necessary reforms and changes for corporations/governments, keeping a free market with varied pay provides many benefits. Below are what we would say are the top three.
Motivation- This is the biggest point and thing that most do not consider if we were to distribute wealth equally. While some look at how our society is set up and think there is no way they can advance or get the knowledge/skills needed to move up or reach their dreams, there are even more that look at their situation and say, “I have the power and ability to make more money, change my situation for the better, and reach my dreams.” A free market helps keep everyone motivated to get better, to improve, to work harder, to keep learning, etc… If you were to take this away and give everyone equal pay, tough questions would need to be asked. For example, should a doctor make as much as a cashier? This is not a knock on someone being a cashier. That might be the right job at that point in time, but forever it probably is not. Some jobs just do not require a lot skill and that is okay. If pay was equal though, why would someone put in all of that time to become a doctor if the payout is the same? Wouldn’t they pick an easier path? Sure some would still want to be a doctor, but lets say 10/10 people settled on doctor as their career path. Even if money was not the prime factor, it is still a factor. Now if you told those same doctors you will only make as much as a stock associate that requires little to no skill, we would venture to say more than half, if not maybe all would reconsider or change their career path. Are we prepared for a shortage of doctors or unqualified ones? This would happen in other industries as well.
More Jobs/opportunities Available- The internet has allowed more people to have a voice, to make a website to sell a product or service, and given more ways to reach and impact others through their work. Some are using this to their advantage and maximizing its potential while others use it to consume and not produce. You can argue all day about issues in pay, discrimination, benefits, and still have more reasons as to why jobs are not available or harder to get now. The fact though is that there are more jobs and more opportunities for work to make more money than ever before. We need to not forget this! Even if you just took the internet, there are more opportunities than there was even just 20 years ago. Sure they look a lot different and some traditional opportunities have gone away, but that doesn’t mean that there are less now. If you gave everyone equal pay, why would you ever want to learn a new skill or try harder to advance in your career or start a new business? Sometimes you need that kick that there is so much riding on this decision and you will do whatever you can to make it work.
More People Have Wealth Than Ever Before- This is the part that some may not agree with and while not every advancement has been perfect, the world in general has more wealth and more people are living better than they ever have, especially in America. You might define wealth differently, but even in the poorest, worst cites and towns, most people have food, clothing, some form of transportation, and a roof. Now those things might not scream wealth and be a major struggle to get. They may not be anywhere close to perfect or ideal, but they are still better than what our ancestors had to deal with. Each generation faces different and new problems, but one constant that has gotten better is our lifestyle. A free market is a strong contributor of this as it ties back to the first two points. Could a better job be done? Sure and we should strive and keep trying to do better. Has a bad job been done so far? We would argue no.
While the video below is an extreme example of someone not really articulating well what they are trying to say, we think it does go to show what the mindset some people have and the fact that you do have more control over your life and outcomes than what you think. YouTube will probably recommend some other related videos on this topic too. This article and video is not meant to be a final say on all of the pros and cons of either side. This is a discussion worth having just like anything involving money because it affects everything!