In an increasingly materialistic world, many ponder the best solution to achieving happiness. Some specifically contend that by narrowing the wealth disparity prevalent in the modern world, people will be generally happier. I disagree with this viewpoint for several reasons, which will be discussed in this essay.
To begin with, narrowing the wealth gap between individuals in a society may have a detrimental impact on the economy as a whole. Specifically, in a society where there is less or no wealth disparity, people tend to work less hard, thus the economic pie is smaller and subsequently the general living standard is lower. For example, in Vietnam during the 1980s under the policy of the communist party, people received almost the same benefits even if they worked harder and more efficiently. As a result, the economic growth remained stagnant for years and people’s quality of life did not see much improvement. In the 1990s, the government adopted the free market policy, where workers, employees and businesses were free to produce and profit based on their quality of work, experience and skills. During this period, wealth disparity widened but economic growth exploded and people’s way of life was much better compared to the previous decade. Thus, minimizing wealth disparity may negatively affect the economic growth of a society and its people’s way of life.
Minimizing wealth disparity inconsiderately may also disrupt the economy. In an established manufacturing industry, where the profit margin is already low, raising minimum wages may drive large firms into debt, as the majority of their workforce are labor workers. If these large scale firms fail, millions of workers may lose their jobs and the economy may collapse under the pressure of the domino effects. Thus, eradicating wealth disparity is a delicate matter which policy makers need to scrupulously weigh the pros and cons.
In my opinion, instead of viewing the wealth disparity index as an indicator of general happiness, we should strive to improve the standard of living of people who have the lowest social standing. Doing so will have an immediate effect on people’s general well-being and there are many better solutions to achieve this such as investment in education, job creation and vocational training.
In conclusion, narrowing the wealth gap between members of a society is a matter of great delicacy and not the most ideal way to enhance people’s well-being. Inconsiderately applying this solution may even have some consequences on society. Other solutions such as investment in education and creating jobs are recommended.