Choosing between natural economic inequality and Artificial economic inequality

George j Kanyihamba
Posted August 23, 2020 from Uganda

Choosing between Natural economic inequality and artificial economic inequality takes the decisions made by Authorities and those in power. I personally like realism and naturalism,In this perspective Artificial economic inequality is the one created by the Government the moment it decides to coerce,command and control the economy in bid to bring about economic equality and redistribute resources among the members of any state,yet in actual sense it creates wealth to itself for example to its own top officials, friends and diehard supporters just as an old Luganda saying goes "Omugabi teyesera" meaning " if you are the one serving you should not serve yourself little" 

So as Governments try to serve through their wealth distribution and redistribution policies they actually end up serving the majority of the resources to the minority and that is none other than the government itself. iam talking about African governments that I know have really adopted the system of wealth redistribution. And in the same way brainwashed their citizens by making them to think that Government is the people and that everyone is Government.

Yet the reality is that Government is that small group of people that has Authority over the others with the control of state properties and Authorities.

African Govervements create Artificial economic inequality by favouring politicians, bueracrats, Government's friends and loyalists by giving them tax remedies,subsidies and practicing cronyism,corruption and this really destroys the economy living majority of citizens who are not connected to those in power in absolute poverty for example billions of people  in Africa stay in abject poverty due to state created economic inequalities. this well explains the verge of the poorest countries in the world for example in Uganda over 7 million  Ugandans lived below the poverty line as of 2019 according to the World bank reports. With Uganda's population of 35 million ugandans. When I say over 7 million are below the poverty line I don't rule out the fact that the rest of the population is not rich not even in the middle class income status. they are still far from that. The 7 million population that lived below the poverty line was the World Bank statistic before even the world pandemic (COVID 19) striked and hit the country .Before COVID 19 Rocusts had also already hit hard the Agricultural areas of the country living most communities in Eastern ,northern and western parts of the country without productivity for both cash crops and food crops. Currently Ugandans have been in the lockdown without working for about 6 months now,the number of those who are below the poverty line is expected to sky rocket. Just as I once said ,that the  government officials get richer and  citizens get poorer since they are at the herem of wealth distribution in most Parts of Sub-Saharan Africa for example the richest in developed countries are entrepreneurs and innovators and the richest in the poorest countries are the government officials and politicians who the custodians of economic ,wealth and resource distribution that iam talking about in this case. This well explains why everyone in these countries look and political positions as the  best top notch businesses ,therefore many struggle hard to become politicians and also get positions not because they are naturally talented in leadership, have the skills nor do they want to work for their people but because political positions are highly paying jobs In poorest countries Especially in sub Saharan Africa.

In such countries were governments tend to instill the forced, corced ,commanded and centrally planned economic equality (Artificial Economic equality) through distribution and redistribution,Governmental officials are richer than the whole majority population yet their salary and income do not equate to their networth. They do not do business,not even production as the only known moral ways that create income and wealth but they own multi billion properties and in most cases control public properties and sell these properties to themselves, Even when they are caught there is no action taken against them since they are the resource's planners.

On the other hand Natural economic inequality is the one that is created by individuals themselves in the society as they try to  compete, I call it natural because it is moral ,it doesn't involve taking away from someone but it involves rewarding hardwork,creativity and innovation. So as people try to innovate and create under the rule of law and property ownership, they end up creating differences amongst themselves which come naturally and these are "Natural" and inevitable economic inequalities since individuals do not use the same potential ,same knowledge or the same ideas especially in planning,prioritising,investing and entrepreneurship. If I decide to invest 100 dollars whether I had it through a loan or I had it as liquid capital and you also decide to invest 20 dollars of which 1 is expected to bring back 30 dollars after a month ,then we shall be unequal in income generation and profit making. depending on the decisions we made and that is a natural economic inequality that is not generated by any central planning and  individuals often create these economic inequalities  for themselves as they try to compete in that way which is normal in a free market economy.   If we are all given equal opportunities,the rule of law,property rights that means we are all equal. our inner human potential determines how far we shall go and trust me we start at the same line but we cannot finish and the same line and equality of opportunities therefore works better than equality of results. Governments  just have to give equal opportunities regardless of status,Age,skin colour, tribe,religion,culture and other social differences. The space to everyone to create more,innovate more ,think more create wealth and prosperity  through the rule of law,private property and also limiting Government interventions in the economy. The invisible hand would be at work just as it was  advanced by Adam smith the father of modern economics.

     George j kanyihamba.

      George K justice

George freeman George.

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Sep 17
Sep 17

Thank you for sharing brother .