Readings

Are rich people the ones who work the hardest? An essay reviewing two books on Ayn Rand's (personally, I detest her) philosophy has ideas...

Let us begin with the premise that wealth represents a sign of personal virtue--thrift, hard work, and the rest--and poverty the lack thereof. Many Republicans consider the link between income and the work ethic so self-evident that they use the terms "rich" and "hard-working" interchangeably, and likewise "poor" and "lazy." The conservative pundit Dick Morris accuses Obama of "rewarding failure and penalizing hard work" through his tax plan. His comrade Bill O’Reilly complains that progressive taxation benefits "folks who dropped out of school, who are too lazy to hold a job, who smoke reefers 24/7."

A related complaint against redistribution holds that the rich earn their higher pay because of their nonstop devotion to office work--a grueling marathon of meetings and emails that makes the working life of the typical nine-to-five middle-class drone a vacation by comparison. "People just don’t get it. I’m attached to my BlackBerry," complained one Wall Streeter to Sherman. "I get calls at two in the morning, when the market moves. That costs money.”

Now, it is certainly true that working hard can increase one’s chances of growing rich. It does not necessarily follow, however, that the rich work harder than the poor. Indeed, there are many ways in which the poor work harder than the rich. As the economist Daniel Hamermesh discovered, low-income workers are more likely to work the night shift and more prone to suffering workplace injuries than high-income workers. White-collar workers put in those longer hours because their jobs are not physically exhausting. Few titans of finance would care to trade their fifteen-hour day sitting in a mesh chair working out complex problems behind a computer for an eight-hour day on their feet behind a sales counter.

... Is income really a measure of productivity? Of course not. Consider your own profession. Do your colleagues who demonstrate the greatest skill unfailingly earn the most money, and those with the most meager skill the least money? I certainly cannot say that of my profession. Nor do I know anybody who would say that of his own line of work. Most of us perceive a world with its share of overpaid incompetents and underpaid talents. Which is to say, we rightly reject the notion of the market as the perfect gauge of social value.

Now assume that this principle were to apply not only within a profession--that a dentist earning $200,000 a year must be contributing exactly twice as much to society as a dentist earning $100,000 a year--but also between professions. Then you are left with the assertion that Donald Trump contributes more to society than a thousand teachers, nurses, or police officers. It is Wall Street, of course, that offers the ultimate rebuttal of the assumption that the market determines social value. An enormous proportion of upper-income growth over the last twenty-five years accrued to an industry that created massive negative social value--enriching itself through the creation of a massive bubble, the deflation of which has brought about worldwide suffering.

If one’s income reflects one’s contribution to society, then why has the distribution of income changed so radically over the last three decades?