Who's Afraid Of Income Inequality?

Through decades of research, American neurobiologist James McGaugh [20] discovered that as humans learn information and encounter new experiences, the part of the brain known a the amygdala plays a key role [21] in retention. The amygadala is activated primarily by stress hormones and other emotionally arousing stimuli. Memory consolidation, or the forming of long term memories, is typically modulated very strongly by the amygdala. Put simply, events that invoke significant amounts of emotion make a bigger imprint on one’s brain.

Emotion, while an important element in man’s array of mental tools, can unfortunately triumph over reason in crucial matters. Excessive anger can lead to violent confrontations. Heartbreak can lead a person to do drastic things in order to woo back a lost lover. In the context of simple economic reasoning, today’s intellectual establishment often disregards common sense in favor of emotional-tinged policy proposals that rely on feelings of jealously, envy, and blind patriotism for validation rather than logical deduction. “Eat the rich” schemes such as progressive taxation and income redistribution are used by leftists who style themselves as champions of the poor. Plucking on the emotional strings of envy makes it easier to arouse widespread support for economic intervention via the state.

In the aftermath of the financial crisis of 2008, economic growth predictably slowed down in most industrialized countries. Many commentators on the political left have grasped onto this opportunity to point to the vast amount of income inequality which exists in the United States and reason that it played a part in causing the crash. This argument is typically paired with a proposal to raise taxes on the rich to balance out societal incomes. It is alleged that having government brutes step in order to play the role of Robin Hood is the best and most justified way to alleviate income inequality.

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