What Is Economic Equality? Definition & Philosophy

What Is Economic Equality?

Economic equality is the principle that wealth, income, and economic opportunities should be distributed fairly among members of society. It is one of the most contested concepts in political philosophy, with debates ranging from whether equality should be pursued at all to what kind of equality is most valuable.

The Case for Economic Equality

Marxist Egalitarianism

Karl Marx (1818-1883) argued that capitalism is inherently unequal and exploitative. The capitalist class appropriates the surplus value produced by workers, leading to the concentration of wealth and the immiseration of the working class. Marx's solution was the abolition of private property and the establishment of common ownership of the means of production.

Rawlsian Liberalism

John Rawls (1921-2002) offered a more moderate case for economic equality. His difference principle permits economic inequality only if it benefits the least advantaged members of society. Rawls argued that while incentives for talent and effort may be necessary, they must be justified by showing that they improve the position of the worst-off.

The Capabilities Approach

Amartya Sen (born 1933) and Martha Nussbaum (born 1947) shifted the focus from income and wealth to what people are actually able to do and be. Economic equality matters, on their view, because it affects people's capabilities to live flourishing lives. Sen's work in Development as Freedom shows how economic inequality undermines people's capacity to participate fully in social, political, and economic life.

The Case Against Economic Equality

Free-Market Liberalism

Milton Friedman (1912-2006) and F. A. Hayek (1899-1992) argued that efforts to achieve economic equality through government intervention threaten individual liberty and economic efficiency. In Capitalism and Freedom, Friedman contended that free markets, while producing unequal outcomes, are the best system for generating prosperity and protecting freedom.

Libertarianism

Robert Nozick (1938-2002) argued that enforcing economic equality violates individuals' property rights. For Nozick, the only legitimate role of the state is to protect negative rights, not to redistribute resources.

Conclusion

The debate over economic equality reflects deeper disagreements about the nature of justice, the importance of individual liberty, and the proper role of government in the economy. While there is no consensus on what economic equality requires, the question of how to distribute economic resources fairly remains central to political philosophy.