"For entirely innocent reasons, the preferences and talents of people will not always produce equality of results. The egalitarian tendency is then to coerce equality of result by law." -- Robert Bork
Captain Renault: "I'm shocked, shocked to find that gambling is going on in here!"So what's wrong with inequality, anyway? According to conservatives like Bork, inequality is the innocent outcome of innate differences in "preferences and talents." Doing away with inequality would not only be inefficient but would require the exercise of coercion.
Croupier: "Your winnings, sir."
Captain Renault:"Oh, thank you very much."
Liberals, meanwhile are shocked, shocked to find so much inequality going on in this day and age. Obviously there is a need for a bi-partisan effort to tone down the inequality a bit without too much coercion. Oh, thank you very much.
So what's wrong with inequality? For anybody paying attention, Judge Bork let the cat out of the bag. Inequality is coercive (but don't tell anyone!). That's why conservatives attack equality as coercive.
The move incorporates several tactics associated with Karl Rove: take the offensive, attack your opponents' strengths and steal their thunder by accusing them first of what they might effectively use against you. Libertarians and conservatives have made it their business to "own" the coercion claim and thus deflect its sting. Liberals aid and abet them by conceding a whimsical "efficiency/equity trade-off" and by running interference against normative encroachments on allegedly positive economic methodology.
Why do people want to get rich? Sure, they want nice stuff, but more fundamentally they want to be freed from the coercive everyday insecurity of being poor. How do the wealthy stay rich and get even richer? They use the political power that their wealth accords to keep the game rigged in their favor.
These are not state secrets. Nor are they facts disclosed in data reported by the BLS or the IRS. Just common knowledge -- common sense that doesn't count for beans in the marginal productivity analysis. Inequality is a positive fact; coercion is a normative claim. So let's all talk about inequality as if it has nothing to do with coercion. Let's not talk about the elephant in the room. What elephant?
So what's wrong with "inequality"? Framing the debate to be about "inequality" misses the point that the real problem is coercion. If the inequality conversation leaves the coercion question up for grabs, you can be damn sure the right will seize it and run with it. Loser liberals then will have yet another opportunity to be shocked, shocked that so much inequality is going on.
"Wealth, as Mr. Hobbes says, is power…. The power which that possession immediately and directly conveys to him, is the power of purchasing; a certain command over all the labour, or over all the produce of labour, which is then in the market." -- Adam Smith, Wealth of Nations
"The distribution of income, to repeat, depends on the relative power of coercion which the different members of the community can exert against one another. Income is the price paid for not using one's coercive weapons. One of these weapons consists of the power to withhold one's labor. Another is the power to consume all that can be bought with one's lawful income instead of investing part of it. Another is the power to call on the government to lock up certain pieces of land or productive equipment. Still another is the power to decline to undertake an enterprise which may be attended with risk. By threatening to use these various weapons, one gets (with or without sacrifice) an income in the form of wages, interest, rent or profits. The resulting distribution is very far from being equal, and the in- equalities are very far from corresponding to needs or to sacrifice." -- Robert L. Hale, "Coercion and Distribution in a Supposedly Non-Coercive State," Political Science Quarterly, Vol. 38, No. 3 (Sep., 1923), pp. 470-494