Old Idea on Wealth Inequality

To the editor;

I recently read a few articles in the T&T about wealth inequality: Are CEO salaries good for the economy (Jan 4), Top executives make a year’s average salary in half a day (Jan 3), and Tax the fat cats back to human size (Jan 5).

I could try to express my shock over the fact that the average top 100 CEOs make $44,366 in half a day or I could rant about the injustice of the situation. But instead I will turn to some words of wisdom from an old Greek philosopher.

In Plato’s book “The Laws” (not “The Republic”) he talks at length about wealth inequality. I would like to point out a few of the things he says.

1. The pursuit of money is an acceptable occupation, but it is the lowest in the scale of honor.
2. A dishonest man can always become richer than an honest man, because he can earn twice as much, employing both honest and dishonest means.

3. Every state must avoid having extreme conditions of wealth and poverty. Such conditions will lead to civil war. The wealthy will use every trick they have to protect their riches. The poor will resort to fire and the sword to redistribute the wealth.

4. Both poverty and luxury corrupt the soul.

So what was Plato’s suggestion to resolve this problem of inequality?

The state should limit both poverty and wealth by setting a minimum and maximum amount that may be earned. Four social classes would be established. The poor would be guaranteed a subsistence level income, in terms of free food and essential goods equal to what could be generated by a small family farm. The lower middle class could then earn up to twice this amount. The upper middle class could earn up to four times the base amount. The rich could earn up to eight times the minimum income. Wealth generated beyond this amount was to be turned over to the state or used in the building of a public facility for the city. Penalties were to be harsh, including the confiscation of half the total wealth of an offender.

To put this in modern terms, let us assume the subsistence level today is $1,000/month (more than welfare pays) thus an annual income of $12,000. This would be the guaranteed minimum income or base amount. The lower middle class would make $24,000. The upper middle class, $48,000 and the rich would be allowed to earn $96,000 annually. Shockingly low amounts aren’t they?

In a world with top elites making 189 times more than the average citizen it’s almost impossible to imagine the rich making only eight times more than the poor.

Maybe we don’t need to adopt such a tight restriction on the wealth gap, but we should do something and soon. In a democracy we, the majority, should have the power to ensure that equality laws are enacted. But some how the elite 1% have gotten laws in place to benefit them and protect their wealth. No matter what party is elected, the rich and the corporations usually receive tax brakes not increases. Maybe this is why some people claim our democracy is faulty.

Think about it.