Gap between rich and poor rising faster in Canada than U.S.:Study
John Morrissy brings forth the idea of inequality created by capitalism. Between its peers, Canada’s divide between the rich and the poor is growing at the fastest rate. In essence, the rich are getting richer and the poor are getting poorer.
The main ethical issue that arises is whether society should compensate and provide for the poorer individuals. The author suggests that the higher standard of living we are accustomed to will disappear, if we do not find a better framework to distribute the wealth. It will create social tension which would eventually lead to investors taking their money elsewhere. The wants of the wealthy will never be satisfied but if this inequitable system continues the needs of the poor will not be fulfilled either.
To avoid this, society must protect all of the individuals involved. Therefore, the rich must be willing to share their wealth, not only because it is morally right, but also to protect their own way of life. In the words of Adam Smith, “No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable.”
To be frank, I disagree with your post in which you stated “rich individuals must share their wealth with the less fortunate in order to protect the society.” In an environment where wealth is evenly distributed, people will not be as motivated to work due to their selfish nature. This will greatly reduce the prosperity and growth of civilization, as advancements cannot be achieved from idleness. Also, individuals are driven mainly by their self-interests. Most of us attend university to upgrade our living standards, not to utilize our skills to help the less fortunate. Without a doubt, this factor drives innovation to satisfy our desire for high income and a better lifestyle. Dominant self-interest is also the reason why socialism does not work and why our welfare systems are greatly flawed. By redistributing income though enhanced welfare, more and more people will have a greater incentive to stay below the poverty line and take advantage of the extra perks rather than finding means to improve their situation. The wealth that most individuals possess was earned through persistent efforts that bettered society along the way. Thus, it is unjust to strip it away from these individuals just to achieve income equity.