Raise the Hammer

I remember listening to a lecture by an Economist (it was a long time ago, I don't remember the specifics - sorry) who compared income gaps between the US and Japan.

The health and crime related statistics were alarming. The US near the top of the charts for everything from heart disease to divorce, to bankrupcy. Japan was near the bottom.

"What could cause such a disparity?" he wanted to know.

He showed the economic numbers. Both had excellent GDP, average incomes etc, all were similar - what was it that set them apart? Then he gave the income gap numbers. I recall the income gap in the US was astonishing. Something like a 1000% difference between the richest 2% and the poorest. It Japan it was something less than 20.

His conclusion then, was that the income gap had a role to play in the health and happiness of a nation.

The lecturer used to work in healthcare. He gave an example of non-white Americans who came in for surgery.
"They were always comforted by an array of family members" he explained, "And yet, when the white American's came in - the born and bred citizens - they were often alone"

His point was that income gaps create a disconnect in our society, where the poor really do get left behind. Chasing money and worrying about money and being obsessed with money prevents you from focusing on what is really important - community, friendships, enjoying the little things in life. A country that is obsessed with growth and the accumulation of income and property and 'things' loses sight of what is truly important and succeeds only in increasing the gap between rich and poor and propogating the problem.

I don't know how the income gap is controlled in Japan but I wondered, what would happen if we set a barrier to income growth? What if that CEO could only earn no more than 10 times the salary of his lowest paid worker. Would he pay himself less, or pay the janitor more? Would he run off to the US and work, or stick with his home country? Would our economy flouder or would our society excel?

I think income disparity is a critical issue. It's not enough to simply throw money at the bottom of the heap and look away. We are all interconnected, we are all part of this problem, and the solution. Only when our incomes and futures are linked will we be able to work together towards a solution.