Economics and Ethics: Economic Inequality

Student’s Name
Professor’s Name
Course
Date
Economics and Ethics: Economic Inequality
The growing gap in economic inequality has become an issue of concern for many, and with good reason. The poor continue to suffer in poverty while the wealthy continue accumulating wealth. This rise in inequality is evident in the growing gap between the rich and the poor; according to Bapuji et al., the wealth of the 26 wealthiest people in the world is equal to that of the bottom 50% (over 3 billion people) [2]. Such statistics provide a powerful reason to reduce inequality. Yet, some people argue that the need to fight economic inequality stems from a place of envy toward the rich. However, economic inequality is an ethical concern that stems from unfairness and unequal opportunities in wealth creation and should be addressed. This paper will apply Rawls’ difference principle and Nozick’s entitlement principle to analyze economic inequality and how it can be reduced.
Why Economic Inequality is an Issue worth Looking Into
Economic inequality is troubling because it affects not only specific individuals but society. According to Basu, economic inequality contributes to violence, supremacist ideologies and identities, and other social problems, including opioid use (1). These are issues that affect not only the poor but also the wealthy, although to varying degrees. In addition, economic inequality contributes to unethical behaviors in organizations and society in general. For instance, Bapuji et al. indicate that inequality has been linked to bribery (31). Economic inequality tempts the poor to accept bribes before delivering services. Bribery in public offices hinders the fair delivery of public services between the wealthy, who are financially capable of paying bribes, and the poor, who are economically incapable of the same. In addition, economic inequality presents ethical concerns in politics because political figures often depend on contributions from the rich to run their political campaigns. This can hinder fair representation by political figures in public office. Economic inequality has also been linked to tax evasion and other forms of tax fraud (Bapuji et al. 31). Reports in the news indicate that the rich hide their wealth in offshore accounts, thereby avoiding taxation. This tax evasion is not only unethical but also exacerbates the magnitude of economic inequality. Given these reasons, there is a strong reason why economic inequality is an important issue deserving of the public's and policymakers' attention.
Rawls’ Difference Principle
Rawls’ difference principle is the second principle of justice, which proposes that social and economic inequalities should be reasonably advantageous to everyone and should, under the condition of fair equality of opportunity, be attached to positions and offices accessible by all (Rawls 53). Distributive justice should be about choosing the most equitable distribution of wealth so that everyone benefits, even when they lack equal access to wealth.
Beyond the fair equality of opportunities presented through fundamental liberties, there are other opportunities that allow some people to gain more wealth than others. For instance, as a child, M...