Do you think income inequality is a problem?

Do you think income inequality is a problem?

  • Yes

    Votes: 38 56.7%

  • No

    Votes: 29 43.3%
  • Total voters
    67
rpm said:
I am one of those :)

I think inequality is a consequence of a free market and economic growth which are needed to move people out of poverty. In all countries which moved from poor to rich, like Singapore and China, inequality increased. When a company becomes rich it is easier to address inequality.
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Oh i thought the question was purely from wSouth African context
 
rpm said:
I think inequality is a consequence of a free market and economic growth which are needed to move people out of poverty. In all countries which moved from poor to rich, like Singapore and China, inequality increased. When a company becomes rich it is easier to address inequality.
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there is no free market system
 
Pegasus said:
From which definition of free market system are you working on?
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I'm happy with this one

In economics, a free market is a system in which the prices for goods and services are self-regulated by the open market and by consumers. In a free market, the laws and forces of supply and demand are free from any intervention by a government or other authority and from all forms of economic privilege, monopolies and artificial scarcities.
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or this one

The free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions. Based on its political and legal rules, a country's free market economy may range between very large or entirely black market.
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they all basically say the same thing, and when compared to the reality of the world we live in, it becomes very clear no free markets exist in the way those definitions describe
 
So all prices are set by government?

Consumers are not able to negotiate?
 
saturnz said:
make your point, where does negotiation play a part in free markets?
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Negotiating buying and selling prices.

Here is a quick video on supply and demand for you.

 
Pegasus said:
Negotiating buying and selling prices.

Here is a quick video on supply and demand for you.

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so if the seller is a monopoly, does that mean the market is free? what if the buyer is a monopsony?
 
saturnz said:
so if the seller is a monopoly, does that mean the market is free? what if the buyer is a monopsony?
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Does having a single monopoly that can set a price for a single product in a market of millions of other products mean you don't have a free market at all?
 
Pegasus said:
Does having a single monopoly that can set a price for a single product in a market of millions of other products mean you don't have a free market at all?
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when it comes to the market for money, then yes, since money impacts all other markets, read the definition of what is a free market, I provided you with two
 
saturnz said:
when it comes to the market for money, then yes, since money impacts all other markets, read the definition of what is a free market, I provided you with two
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Yeah, I've written a few economics exams thanks.

I'm just trying to figure out what you are on about.

So if there are no free markets, how would you describe the markets?
 
Pegasus said:
Yeah, I've written a few economics exams thanks.

I'm just trying to figure out what you are on about.

So if there are no free markets, how would you describe the markets?
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Central banks are legislated monopolies, maybe you forgot that little fact while writing your economics exams...

Are you actually going to argue markets are free when you have a legislated monopoly operating within it?
 
saturnz said:
Central banks are legislated monopolies, maybe you forgot that little fact while writing your economics exams...

Are you actually going to argue markets are free when you have a legislated monopoly operating within it?
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You're saying they are not free which is ok by me, so I'd like to know how you define the market.
 
Pegasus said:
You're saying they are not free which is ok by me, so I'd like to know how you define the market.
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the definition of a free market is clear, you maybe didn't read it, so I will paste an extract here

In a free market, the laws and forces of supply and demand are free from any intervention by a government or other authority and from all forms of economic privilege, monopolies and artificial scarcities.
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so a central bank is a monopoly, given power by the government in the constitution, so it stands to reason markets are not free because of the existence of a monopoly and government intervention giving this monopoly power
 
It's such a complex issue, but inequality will always exist.

In SAs context,
I think everyone should have the same opportunity.
Mandatory education, performance based rewards, lots of skills training.

Imagine where we could have been today if the ruling party was rabid about, and committed to giving everyone a proper education. We would have no shortage of skilled workers.
 
saturnz said:
the definition of a free market is clear, you maybe didn't read it, so I will paste an extract here



so a central bank is a monopoly, given power by the government in the constitution, so it stands to reason markets are not free because of the existence of a monopoly and government intervention giving this monopoly power
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Do you have a definition for the not free market system?
 
Pegasus said:
What is a command economy?
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you are drifting, I made the point that markets are not free, and thus rpm's point that free markets cause inequality needs to be revised.

if you want to talk about command economies, you welcome to state your point again, given your experience in writing economics examinations
 
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