Addressing Disparities in Income and Wealth
The Challenge
In the United States, the gap between the incomes of rich and poor people
has grown substantially since the 1970s, and wealth inequality has shown
a parallel increase. Globally, inequalities between rich and poor countries
are also apparent, challenging us to consider whether extreme and persistent
disparities violate ethical norms.
 What's
at Stake
From the walkout of developing countries at the World Trade Organization
talks in Cancun to shareholder revolts over executive compensation, income
inequality is an underlying theme in many arenas, both global and domestic.
The impact of government policies, such as the recent federal tax cuts,
on such disparities has been widely debated. Every society tolerates some
measure of inequality, but extremes of wealth and poverty may ultimately
threaten social and political stability. They may also violate basic ethical
principles of fairness and compassion. One framework for evaluating the
ethics of disparities was offered by the U.S. Conference of Catholic Bishops,
when they stated, "A fundamental moral measure of any economy is
how the poor and vulnerable are faring." Large disparities in income
and wealth may be least justifiable when they coexist with large numbers
of people suffering extreme poverty.
Critical Questions
- Do large disparities in wealth and income in fact violate important
ethical principles?
- Is there a compelling ethical objection to inequality per se, in
the form of wide variations in income and wealth, or is the major ethical
challenge specifically poverty—the existence of a significant number
of people suffering from severe material deprivation?
- What are the economic, social, and political factors that have created
recent trends in income and wealth inequality? Are these trends likely
to continue?
- To what extent should governments undertake measures to reduce poverty
or income and wealth inequalities, and what kinds of policies are most
effective and least disruptive?
- How can distributive issues be raised in the political process, both
nationally and globally, in a fashion that avoids the divisiveness of
class warfare?
- How do we achieve a balance between the goals of redistributive policies
and competing ethical objectives, such as economic freedom and efficiency?
October 23, 2003
 Read
the text of William Sundstrom’s presentation on Addressing Disparities
in Income and Wealth.
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to Ethics Outlook Agenda
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