Real Income is Earned, Not "Distributed"

We sometimes hear people talk about "income distribution." But that's a contradiction. Real income is not distributed, it is earned.

First, it is important to understand that 'income' is not some magically appearing entity that is arbitrarily distributed by a benevolent or malevolent force. Income is primarily a result of providing goods or services that others are willing to pay for. This underscores the principles of free-market economics where value is exchanged for value.

Individuals earn their income by contributing to the economy through their skills, abilities, education, work ethic, and risk-taking capacities. It is not, as some misconceptions suggest, a pie to be divided up based on personal biases or political agendas. To believe otherwise is to ignore the basic principles of economics and the price system, which balances supply and demand, reward and risk.

Distributing income equitably often presumes a level of social fairness that, while noble in intention, is often flawed in practice. It undermines the incentives for productivity, innovation, and entrepreneurship that make a free-market economy thrive.

Government interventions, in the form of redistributive policies, often create more problems than they solve. They distort market signals, create inefficiencies, and breed dependency. More importantly, they promote a mentality that income is something one is entitled to, rather than something to be earned.

In conclusion, real income is indeed earned, not distributed. Emphasizing distribution over earning is a sure way to stifle productivity, hinder economic growth, and breed resentment. Our focus should instead be on fostering an environment where people are free to pursue their entrepreneurial passions and are rewarded according to the value they bring to society."