Causes of Uneven Income Distribution.

I found this short article in Cafe Hayek worth reading. In just a short passage, it explains the reason behind uneven income distribution. Of course it assumes that the political, social and even historical background under which economic actors behaved and acted are neutral. Assuming they are, then uneven income distribution can be explained thus:-

 

Most wealth is created de novo in the process of applying ingenuity to comparatively worthless commodities, and the benefits flowing from consumers to providers in a free society bear no relation to any distributive or merit-based calculus.  There can exist no principles of just conduct – which necessarily imply free choice – that would produce a pattern of wealth distribution which could also be called just.  It is logically impossible to have a game in which both the actions of the players and the final score can be subject to rules of fairness.  If it is unfair for one team to outscore another by more than a certain margin, the behavior of the players will have to be directed by the umpires.  But if the players are to be free to act within rules of fair play, the outcome logically cannot be said to be unfair.  Likewise, if citizens following all the rules of just conduct become wealthy, there is no basis on which to condemn the resulting distribution of wealth as "unjust."  If no one actually commits an injustice, then no moral principle can reconcile justice to individuals with social justice after the fact.  Only in centrally directed social systems, such as the military, can social justice even make sense, as there are no rules of just conduct in settings where individuals are instructed what to do.

I hope this short passage can provoke thinking on this subject.