Encyclopedia of Opinion
Question
Is there a correlation between capitalism and income inequality?
Position1 of 3

No, capitalism does not cause inequality

Income inequality is a byproduct of every society, no matter what economic system under which that society functions. Capitalism, by nature, does not encourage or catalyze the inequality already in place.

Supporting arguments · 2

  1. Capitalism can be proven to shrink inequality
    The tenets of the free market allow individual economic growth that acts as a literal opposite to the income inequality attached to capitalism.
  2. Cronyism and social programs are causes of inequality, not capitalism
    Modern detractors of capitalism fail to understand the nuances behind income inequality, and corruption and crowding out as a result of social programs are key causes for the unequal wealth distribution in many countries.