Is Economic Equality Worth the Loss of Prosperity?

08/03/2009 • Real Clear Markets

As our nation remakes itself into a European social democracy, bidding farewell to American Exceptionalism, we hear constant calls for "sacrifice." Have you wondered exactly what it is that we've been asked to give up? The radical idea that all men should be equal before the law, each free to pursue happiness using his own means, created a nation of innovators that transformed the world. American culture had little tolerance for hereditary privilege, instead celebrating the self-made man accepting unequal outcomes as the price society pays to motivate entrepreneurial risk. Our founding social contract gave almost everyone a shot at riches but guaranteed outcomes for none. The system lasted 200 years because the same market that rewarded innovation eventually spread its fruits to even life's laggards. In the historical blink of an eye material luxuries became necessities became basic human "rights." Has there ever been a more rapid increase in living standa