Saturday, October 8, 2011

veil of ignorance

Over the past two days, the Occupy Wall Street folks have brought their particular brand of protest to Sacramento, and in Caesar Chavez part to be exact. The focus of their protests is widely varied. Some protest the fact that a majority of the wealth is unequally in the hands of the top 1% of wage-earners in this country. Some protest the corruption of soft money and its influence on politics. Some protest the lack of necessary infrastructure in certain urban areas. Some protestors (and I feel this may very well be the bulk of the people standing downstairs in the park) are protesting for the sake of protesting.

This morning I saw a bunch of signs taking jabs at the top 1%, calling them names and saying they're greedy. While I understand the need to call for the top 1% of wage-earners to pay more taxes, I don’t necessarily think the notion that they don’t pay their fair share is very accurate. For the record, I believe that the top 1% should indeed pay for more of this country than they currently do, especially since they can pay for it and social responsibility calls for this. What I don’t agree with, is the statement that they don’t pay their fair share. The top 1% of wage-earners pay for over 20% of this country. I think it’s fair to say they’ve paid their fair share. Well that and the fair share of at least 20 other people. That's the way it should be, because that's social responsibility. Let's just not try not to call them names while they do it should also be an aspect of that same social responsibility.

The way our tax system is currently structured is inded slightly flawed. We have obscene loopholes where there shouldn't be, and unfair bureaucratic technicalities that should be patched. Each side of the table that decides these rules have their own points of view of what’s fair and what’s not. There’s never going to be a one-size-fits-all tax scheme that will be seem fair to everyone. As long as the people deciding the rules take an objective approach, we can only hope for the best.

The main thing to keep in mind, when deciding any social issue, is to block out a person’s own social position. Imagine before you’re born, you don’t know anything about who or what you’ll be. Now, come up with a tax system. As John Rawls puts it:

"no one knows his place in society, his class position or social status, nor does anyone know his fortune in the distribution of natural assets and abilities, his intelligence, strength, and the like. I shall even assume that the parties do not know their conceptions of the good or their special psychological propensities. The principles of justice are chosen behind a veil of ignorance."

The people who formulate the tax structure need to keep this in mind. I also challenge those who went out to protest these last two days to block out their own social position before painting their signs and coming up with chants.

“The principles of justice are chosen behind a veil of ignorance."

2 comments:

hello friday said...

Hi Jack! Long time no talk. Well I wanted to put in my 2 c's. I think this comes at a critical time when people feel (rightly I think) that the financial sector was the one that got us into this mess and therefore needs to accept some blame or culpability. I think these people are protesting based on a general feeling of discontentment, and often they are not protesting for the same reasons or have all the same opinions. I think it's the case that taxes are only one aspect of the protests.

I've been thinking a lot about the economy lately too, and how the US political system seems so slow and inept at handling the recession. I wonder if this is just the price we pay for having a democratic system where everyone gets to express an opinion (even if it's based on little knowledge) making it difficult to reach a consensus method of action with all those opinions. Or if the fed should stop fiddling with the economy all together and let it naturally get back to its equillibrium.

Anyways, this is a long comment, but I appreciate your post and I like discussions like this.

Jack Zhu said...

Hi! yep it's been awhile! I agree that the people protesting are discontent and have a right to protest. I simply question some of their protest as I think it can be achieved through better means.

I will tell you something interesting though. I was in DC this weekend and saw the Occupy DC movement. It's funny, in the blackest city in America, I looked out at a sea of predominately white faces. Where are the underprivileged they claim to represent? To someone who is underpriveleged, do you think they care more about clean elections, economic reform, and fair politics? Or do you think they care more about new jobs, available education, and clean water?

I agree that economic reform is needed. I also think tax reform is needed. I think this starts with peaceful protests in parks and squares. The only thing is, we can't just let government stop fiddling with the economy, at a time like this, we need more govt intervention, not less. If we let the economy be, the 1% and 99% gap that the protestors bring up will simply get bigger. That's why govt implements price ceilings and floors.

Conversations like this foster discussion, and discussion eventually lead to reform. We just have to approach it the right way.