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the Marxist syllogism would run: "Present and past labor produce the whole of the product. Present labor gets only part of the product." The logical conclusion is presumably "Past labor is exploited," and the inference for action is that past labor should get more of the product, though it is by no means clear how, unless it be in elegant tombstones. |
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The achievement of allocation of resources without compulsion is the major instrumental role in the market place of distribution in accordance with product. But it is not the only instrumental role of the resulting inequality. We have noted in chapter i the role that inequality plays in providing independent foci of power to offset the centralization of political power, as well as the role that it plays in promoting civil freedom by providing "patrons" to finance the dissemination of unpopular or simply novel ideas. In addition, in the economic sphere, it provides "patrons" to finance experimentation and the development of new productsto buy the first experimental automobiles and television sets, let alone impressionist paintings. Finally, it enables distribution to occur impersonally without the need for "authority"a special facet of the general role of the market in effecting co-operation and co-ordination without coercion. |
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Facts of Income Distribution |
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A capitalist system involving payment in accordance with product can be, and in practice is, characterized by considerable inequality of income and wealth. This fact is frequently misinterpreted to mean that capitalism and free enterprise produce wider inequality than alternative systems and, as a corollary, that the extension and development of capitalism has meant increased inequality. This misinterpretation is fostered by the misleading character of most published figures on the distribution of income, in particular their failure to distinguish shortrun from long-run inequality. Let us look at some of the broader facts about the distribution of income. |
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One of the most striking facts which runs counter to many people's expectation has to do with the sources of income. The more capitalistic a country is, the smaller the fraction of income paid for the use of what is generally regarded as capital, and |
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