Equal Pay for Equal Work is Incompatible with Free Market Capitalism

The buzz phrase “Equal pay for equal work” is most commonly associated with the so called ‘gender wage gap,’ that women are getting paid less for the same work. While there may be a small gap due to discrimination, it is certainly not the 77% number that is often cited by mainstream reporting. But that is not the biggest problem with the issue of the phrase “equal pay for equal work.” The real problem with this phrase is that it is in fact regressive. If we truly embrace this philosophy, then it will be essentially impossible to progress, either technologically or socially.

Economic and technological progress hinges on the exact opposite idea: do the same work for less pay. Even better, many do better work for less pay. This is the nature of economic and technological competition. Technological progress strives to lower prices, producing the same goods at a lower price point. The winners are the ones who provide what consumers think is the best product for the lowest price. Cutting the price for the same product, or a superior product requires paying less for all the accumulated labor that produced the product. This is essentially less pay for equal work.  

Perhaps this is a misunderstanding of the phrase. What if we use another conception of the phrase? Let us examine equal pay for equal output, equal pay for equal effort, and equal pay for equal time worked.

• Equal pay for equal output: This is the most reasonable interpretation in my opinion, but even in this case ‘equal pay for equal work’ is wrong. In this interpretation, the price of products could never fall, since we can consider the product to be the output. If equal output must be paid the same rate across the market, then computers would in fact be more expensive that the first computers, since they do so much more.
• Equal pay for equal effort: We can consider this to be in some sense to be equal sweat equity for equal pay. This is also wrong, because just because someone works really hard doesn’t mean that their effort is valuable. If we have two people who dig ditches and move the dirt to a more useful location (landscaping or something), and one of them puts the dirt in the wrong location that is just as far away, I think we can see that they have both put in equal effort. One put the dirt in the right location, while the other did not. Clearly, the one who put the dirt in the wrong location should not be paid the same amount as the one who put it in the right location. If we required equal pay for equal effort, we would be forced to pay misdirected effort the same as good effort, which is clearly wrong.
• Equal pay for equal time: This is clearly ridiculous, as if we had to pay equally for equal time, hourly salaries would be the same for every profession ever, where clearly some are worth more than others. Someone who can build a twice as fast as someone else should clearly not be paid half as much for the same house (and faster too).

These objections might seem trivial, but they demonstrate the significant problems with the mantra ‘equal pay for equal work’ even if we can clearly define what equal work actually means.

Capitalism, by which I mean the free market, works by allowing the competition of people to accept lower pay for equal work; by giving people the freedom to provide services for cheaper than other people. 

Villains of Korra

I recently marathoned the last two seasons of the Legend of Korra. While I understand that it is a kids show on Nickelodeon, I still think that some of the ideas could have been explored better. There is not enough time given to develop the ideas of the villains, or examine what makes the villains wrong, either in their methods or ideology. If you want to watch the series, this contains some spoilers, so I would recommend not reading.

I personally didn't think that much of the first two seasons. The second was so disappointing that I stopped watching, until I heard that the last two seasons were much better. Well, I think one of the reasons that I found the second season so lackluster was that the villain in it had no reasonable justification, or at least as one that I picked up.

The political side of this is that in the first, third, and fourth seasons showcase different political ideals. The first season tries to explore the idea of equality. The equality movement ends up going too far, but the political questions that they raise are not really answered satisfactorily. They end up discrediting the movement by revealing that the leader of the equalists is actually a bender, and therefore a hypocrite. This is unsatisfactory for a number of reasons, the first of which, for me, is that it doesn't remove the objections that were raised by other characters.

The equalists do bring up valid points about being ruled by benders, and how benders have power over them, but they cross the line by taking away peoples bending by force. It should certainly be acceptable to resist benders who try to impose their will on non-benders. This aspect is something that I don't think is explored quite enough, since they end up spending time on rushed romance and pro-bending. One thing that was not mentioned that the benders were getting less relevant in terms of actually using bending in day to day activities. Technology was gradually replacing benders in that respect. The modern civilization also limits what benders can legally do, since it is easy for them to destroy property, which is expensive and has to be fixed.

If people are unequal because of birth, whether it is elemental bending, wealth, good genetics, or any other factors, it doesn't give other people the right to take that away, whatever that is. It is not okay for one group to impose their will through violence or threats of violence, regardless of which side of the have and have-nots they are on. If we take away the abilities that make people extraordinary, all that we are left with is a poorer world.

Skipping ahead to the third season, we have anarchists who are trying to free people from oppressive governments. I find that I can agree with them on some things, but definitely not the way that they go about it. I think that part of the problem is that when they espouse the downfall of governments, they don't make a distinction between government and law or cultural practice. This is a common mistake, but they anarchy that they propose is what is usually thought of as the Hobbesian state of nature.

The fourth season is in some sense the flip side of the anarchist argument, though it is not really portrayed that way. The villain in this season showcases what I would consider some of the dangers of Nationalism. There is some value in a united country as opposed to a fractured one, but for it not to be oppressive, it requires the consent of the governed. Unification through force is not only oppressive, but is also causes war, which is one of the worst things that people can do. Nationalists place the nation as more important than the individuals in the nation. The national interest is used as the excuse, but it is just what the leaders view as the most important.

I would have liked it more if Legend of Korra had expanded a little more on the philosophy of the villains, since for three of the seasons, the villains had philosophy that can't be dismissed out of hand, and even for a kids show, we should try to show that ideas could still be good, even if the way that the villains went about it was definitely wrong.

Why Economic Inequality Should Not Matter

I see a lot of liberal rants about the 'growing economic inequality' and the 'top 1%,' but I think that they are missing the fundamental issue. While it is a nice thought that wealth will be distributed more evenly, so that everyone can enjoy private planes and mansions, we should not be judging society by what the rich can have and the rest can't, but rather by what the normal person can afford. Perhaps it is because humans are a jealous species, but it strikes me that the rich being rich doesn't in any way hurt me.

Consider the case if we take inequality to an absurd extreme. The rich people own planets and have their own private space ships to travel between them. The poor people are stuck on Earth in the state that they are in now. The rich in this case are vastly wealthier than the rich are now, while the poor are just as poor as they are now. So why would the inequality make the difference in social good? Because the poor are more jealous of the rich for having access to more resources?

Contrast this case with a completely equal society with no wealth. There are no rich, only poor, but the income inequality is zero, since no one is making anything. This is where everyone is basically subsistence farming or hunting and gathering, working 12 hours a day to eat, and clothe themselves. This is a situation that is not unlike where humanity started. I think it should be fairly uncontroversial that we have made some progress since then, and I think it is somewhat uncontroversial to say that it is better to be living now, with the large inequality, than 10,000 years ago with less inequality.

What I think should be somewhat clear from my examples is that what is important is not the inequality between the rich and poor, but rather the condition of the poor themselves. If we are concerned primarily about poverty, then what we want is a society where the poor are getting better off the fastest. What happens to the rich should be mostly irrelevant. While the redistribution of wealth from the rich to the poor might sound like a way to fix the problems of inequality, in the long run, this ends up harming the poor more than it helps. In situations with attempted large scale redistribution, such as in the communist states or in other dictatorships (Zimbabwe comes to mind), the poor end up being worse off, eventually to the point where the system collapses, which hurts the poor the most.

As the saying about capitalism goes, a rising tide raises all boats. There are some objections to this from liberals who think that the system that we live in is pure free market capitalism, but there is no other system that I'm aware of that has led to a larger increase of the standard of living of the poor.