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July
18, 2007
Envy and
Poverty
by Gary North, Ph.D.
In
1966, the German sociologist Helmut Schoeck wrote a
classic book, Envy:
A Theory of Social Behavior. He
argued that envy is the root cause of socialism and
other forms of compulsory wealth
redistribution.
Most people think the cause is jealousy. The
jealous person says: "You've got something I want.
I'm going to take it away from you." Schoeck said
this explanation misses the more intransigent
underlying outlook: envy. "You've got something I
want. I can never possess it. So, I'm going to
destroy what you have. I don't want anyone to have
it until everyone can have it."
Schoeck said that a jealous person can be bought
off. He is willing to settle for a piece of the
other person's action. The envious person can't be
bought off. The fact that someone else is in a
position to buy him off enrages him. His sin
therefore is self-reinforcing.
Envy undergirds socialism, he argued. He
therefore concluded that it is impossible to buy
off hard-core socialists by offering to share a
larger percentage of national wealth with them.
They will not go away. They will demand all:
complete equality. Will this undermine economic
production? They don't care. They are not jealous.
They are envious.
Schoeck recognized that envy was one of the
medieval church's seven deadly sins. He believed
that generations of preaching against envy was one
of the pillars of Western economic growth -- one
that has not been widely recognized.
The New Testament's position is that every sin
is deadly. "For whosoever shall keep the whole law,
and yet offend in one point, he is guilty of all"
(James 2:10). "For the wages of sin is death; but
the gift of God is eternal life through Jesus
Christ our Lord" (Romans 6:23). But envy is surely
a sin to be avoided.
There is a common phrase in English: "I really
envy you." It is harmless. It is actually a kind of
compliment. A person has done well. The other
person acknowledges this.
Yet in some cultures, the phrase would be
considered a threat. In such societies, envy is
never mentioned except as something totally evil.
There is a widespread fear of it and its effects.
People believe that either the gods or
practitioners of "the evil eye" are ready to bring
negative sanctions against anyone who gets too high
in society, other than agents of the gods. People
who are successful therefore hide visible signs of
their success. They accumulate wealth in forms that
are not easily detected.
One result is that people with wealth hesitate
to cooperate with those who do not have wealth.
They separate themselves, out of fear of being
envied. They do not want the stigma of visible
wealth. So, they do whatever they can to avoid
contact with people who might become envious. This
reduces the division of labor. People who could
learn about what it takes to become productive are
not given the opportunity.
For well over a thousand years, the church
preached against the sin of envy. This preaching
had a positive effect wherever it took hold in
people's thinking. Listeners were hesitant to
indulge in the sin of envy. They had been warned of
coming judgment against the envious.
The story, more than any other, which served as
the vehicle for sermons against envy was the story
of Cain and Abel.
THE SIN OF CAIN
Both men brought a sacrifice to God. Cain's was
agricultural. Abel's was a dead animal: shed blood.
"And Abel, he also brought of the firstlings of his
flock and of the fat thereof. And the LORD had
respect unto Abel and to his offering: But unto
Cain and to his offering he had not respect. And
Cain was very wroth, and his countenance fell"
(Genesis 4:4-5). His fallen countenance was visible
to God. God warned him: "If thou doest well, shalt
thou not be accepted? and if thou doest not well,
sin lieth at the door. And unto thee shall be his
desire, and thou shalt rule over him" (Genesis
4:7). Cain's problem was internal. Sin lay at the
door, ready to devour him.
Here was his situation. He could not get praise
from God directly. He could trade his agricultural
output with his brother. He could buy an animal to
sacrifice. But he was unwilling to do this. He was
not willing to admit that he had a less desirable
sacrifice to offer. God was being unjust. But,
since he could not get even with God, he got even
with his brother.
An acceptable solution was free trade, but he
preferred violence. Even though his act of murder
would increase his guilt, thereby making his
agricultural sacrifice even more useless, he did
not care. He killed his brother.
By slaying his brother, he made his situation
worse. He was deeper in the clutches of sin. Sin
was now well inside the door. He owed God more, for
his sin was greater. He would pay a heavy price.
This text was familiar to Western audiences for
over a thousand years.
- And now art thou cursed from the earth,
which hath opened her mouth to receive thy
brother's blood from thy hand; When thou tillest
the ground, it shall not henceforth yield unto
thee her strength; a fugitive and a vagabond
shalt thou be in the earth. And Cain said unto
the LORD, My punishment is greater than I can
bear. Behold, thou hast driven me out this day
from the face of the earth; and from thy face
shall I be hid; and I shall be a fugitive and a
vagabond in the earth; and it shall come to
pass, that every one that findeth me shall slay
me (Genesis 4:11-14).
Cain's overt sin was murder, but his act of
murder was grounded on the sin of envy. He wanted
to tear down his brother, despite the fact that he
himself would be made much worse off. This did not
stop him. In his view, it was better to kill his
brother because of God's slight to his honor,
rather than to offer to exchange a part of his
output in exchange for part of his brother's
output. He preferred violence to exchange.
He offered Abel no way out. For a man consumed
by envy, the target of his envy has no way out.
ABRAHAM'S WELLS
Less familiar is the story of Abraham's wells.
When his son Isaac returned to the land of
Philistia, these wells were filled with dirt. "For
all the wells which his father's servants had
digged in the days of Abraham his father, the
Philistines had stopped them, and filled them with
earth" (Genesis 26:15).
What had been the point of filling up the wells?
A well was a source of wealth in the desert. When
Abraham left the region, the Philistines could
simply have commandeered the wells, "in the name of
the People." But they didn't. That would have meant
acknowledging that Abraham had created wealth
through his efforts and capital, when they had not
been able to. Even though the stolen water would
have made them better off, they preferred to fill
in the wells. They resented the wells as symbols of
Abraham's advantage over them. Surely, they did not
offer to buy or rent his wells.
This destructive mentality may seem crazy to
modern men, yet a similar attitude toward other
people's advantages exists in today's society. The
constant cry against inequality of all kinds has
escalated for almost two centuries.
Among those who demand equality, there are few
who pursue it personally. The demand for equality
today come from politicians who live in luxury or
professors in elite universities, who are paid huge
salaries for doing little work and who are
protected for life by tenure contracts that prevent
them from being fired.
As envy has increased, government intervention
into the economy has followed in its wake. Yet
economic inequality remains. The thousands of
programs that were legislated because they would
produce more equality have all failed to do so.
These programs hamper production by substituting
bureaucratic control (negative sanctions) for free
market profitability (positive sanctions). They
substitute fear for optimism. So, they lead to a
smaller pie. Meanwhile, inequality remains or even
increases, as it did in the Soviet Union. Yet the
defenders of equality demand more of the same.
There is nothing like someone else's well filled
with water to upset the defenders of equality. They
will do whatever they can to remove it from their
presence.
A SELF-TEST FOR ENVY
Let us say that two politicians come before you,
seeking your vote. Each offers a different
scenario.
- 1. A world in which American economic growth
will remain at 2% per year, but with China
growing at 5% per year. At some point, the
Chinese will be richer than Americans. "Vote for
me. I'll do nothing about China."
-
- 2. A world in which America's economy grows
at 1% per year, but China's also grows at 1% per
year. America will retain its supremacy in per
capita income. "Vote for me. I'll stick it to
China, good and hard."
If you choose scenario #1, you do not suffer
from envy. You understand that 2% a year is better
than 1% a year. More is better than less. What
China does is a concern for China.
There is something else to consider. Would you
rather buy the nicest home in a lower-income
neighborhood or the smallest house in a rich
neighborhood, if you could buy either one for the
same amount of money? Real estate investors
recommend the latter. The better your neighborhood,
the more likely you will find a rich buyer for your
house if you ever decide to sell. Meanwhile, you
may get invited to parties where you can meet new
contacts -- contacts with a lot of money.
If China can keep growing at 5% a year -- it is
said to grow at 8% -- year in and year out, then
residents of the United States will eventually have
to content themselves to keeping up with the
Joneses. The Wongs will be way out of reach.
How do the Wongs make their money? By increasing
their output. They invent new gadgets, find ways to
cut costs, and generally increase the amount of
goods that are available to buy.
If, five decades from now, rich people in China
will be able to afford to buy the equivalent of
Star Trek's hologram decks, while most Americans
will have to content themselves with Chinese-made,
wall-size, 3-D video screens, so what? If you like
video, 3-D screens are better than what we have
today.
A person consumed by envy compares what he has
with what those in a different postal zip code
have, and he curses the universe because he has not
done as well. Not being able to do anything about
the universe, he contents himself with voting for
policies that will take away the advantage that
residents in the other zip code possess.
Meanwhile, people living in lower-income zip
codes organize politically to get legislation
passed that would cut residents of the better zip
codes down to size. And so it goes, zip code by zip
code. "We'll get even with you!"
It should not matter to anyone how well the
residents of other zip codes are doing. What should
matter is whether he can avoid having to move into
a lower-income zip code, due to circumstances
beyond his control, or whether he can afford to
move up, due to circumstances within his control.
What should matter most of all is whether there is
sufficient economic growth to let people in his zip
code do better, year after year. How well the other
zip codes are doing ought to concern him only in
his capacity as a charitable donor or in his
capacity as a marketer.
INEQUALITY: AN INESCAPABLE
CONCEPT
It is never a question of inequality vs.
equality. It is always a question of which kind of
equality, enforced by whom.
Politicians cannot safely say this. They must
pretend to promote this or that program that is
guaranteed to increase equality. (Note: there is no
money-back guarantee.) The best we can hope for is
that the program confiscates half the water in
someone's well. This will lead to a reduced number
of future wells.
Of course, the debate isn't over water wells
these days. It's over oil wells.
When this debate escalates, it moves from
sharing wells to bombing wells. Or maybe the debate
doesn't escalate at all. After all, Cain did not
escalate his debate with Abel. Instead, he launched
a pre-emptive strike.
If only there were a political party that would
come out foursquare in favor of inequality -- an
inequality based on the decision of each consumer
to buy from one person and not all the others
offering things for sale. Its slogan would be taken
from Mel Brooks' script for The Producers.
"If you've got it, flaunt it!" That's a lot better
than the operational slogan of the envious society:
"If you've got it, hide it!"
We are not created equal. Rather, we are created
responsible. This has been preached by churches for
two millennia. A social order should pursue
personal responsibility. It should enforce this
rigorously in its courts. But when people of
varying talents pursue their ends responsibly,
without resorting to fraud or violence, the result
is inequality. Why? Because people have different
skills, capital, experiences, possessions, and
opportunities. They face different consumers. F. A.
Hayek put this choice clearly in his book,
The
Constitution of Liberty (1960). The courts
must either treat people the same legally and
therefore allow inequality, or else treat them
differently in a futile attempt to create material
equality.
- From the fact that people are very different
it follows that, if we treat them equally, the
result must be inequality in their actual
position, and that the only way to place them in
an equal position would be to treat them
differently. Equality before the law and
material equality are therefore not only
different but are in conflict with each other;
and we can achieve either the one or the other,
but not both at the same time. The equality
before the law which freedom requires leads to
material inequality.
CONCLUSION
We find ourselves in a political world whose
representatives assure the voters that the
government is pursuing equality as a moral
principle. Then these agents use the government to
confiscate wealth in order to expand the operations
of the state and benefit special-interest groups.
They do this in the name of the People.
The age of envy is with us still. So, until this
changes, I leave you with this advice: "If you've
got it, hide it."
Gary
North Archive
Dr.
Gary North earned a Ph.D. in history and is one of
America's keenest economic analysts and
commentators. He supports the Austrian school of
economics and is a previous assistant to
libertarian congressman Dr. Ron Paul. Visit his
website at http://garynorth.com.
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