A host of circumstances contributes to making the remuneration of labor unequal.

Frédéric Bastiat
Economic Harmonies

The case of proletarians facing competition is then looked into. Frédéric Bastiat reminds us once more that each one of us is both a producer and a consumer and that, in the first case we benefit from less competition towards us but on the contrary, we benefit from competition in the latter case. In macro-economic terms, it is then necessary to understand if we benefit more from competition as consumers or if we would benefit more of the absence of competition as producers.

Considering that competition is what allows to garner productivity gains and share them with the whole of humanity, it is obvious that we benefit more from competition as consumers. Moreover, the share of the productivity gains in the consumption of the poor is way higher than the share in the consumption of the rich. Therefore, not only do the poor benefit from competition but it is almost certain that they benefit more from it than the rich.

I am noting today’s quote from the midst of explanations on inequalities, which are not all destroyed by competition albeit being reduced by it. If one accepts that diversity is a boon for the world, it is then absolutely necessary to admit that some inequalities will persist and that, far from being part of the problem, they are part of the solution.

Other quotes from Competition:
Introduction – Part 1 – Part 2 – Part 3 – Part 4 – Part 5 – Part 6 – Conclusion

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