THE CONCEPT OF INEQUALITY

Approaching a social problem is challenging since society is the object of research. To reduce the cost of the process, first, we should understand what the problem is, then develop solutions compatible with the truth, and last, move forward by eliminating mistakes.
Inequality is not a problem that can be eliminated in all its dimensions. The problem is not inequality itself. Our genes, family structure, time, and place of birth already somehow position us in a better or worse place than others. The problem is how we deal with the phenomenon of inequality. Failure to understand inequality causes us to regulate the rules of the game in a way that increases it rather than provides practical solutions to reduce it. The problem is to know what the problem is.

In all areas, we face constraints, and resources should be optimally distributed. Therefore, what we can achieve does not mean what we demand. We can want a wonderful world with no inequalities, but this is not our case. The characteristic structure of the countries determines which policy should be followed. Because every country has its own identity, growth or development is not a clear path. To design our policy, the first binding constraints should be determined, and effective policies that will ease the problem should be implemented. By producing the correct diagnosis, we can make tomorrow better than today, and it may be easier to take the next step as the economy is freed from binding constraints. Approaching problems and limits realistically save us from wasting time and energy with less efficient solution methods.

Economics is not a field that contains absolute truths, but scientific methods allow us to progress by eliminating uncertainties, mistakes, and errors. And if we can eliminate the wrong hypotheses, then we are one step closer to the truth. Of course, a starting point is needed, however, we cannot wait for situations to improve in the long run and close our eyes to unintended consequences. Hence, being critical of our methods requires moving away from the prevailing one-size-fits-all approach. As Einstein said, unthinking respect for authority is the greatest enemy of the truth.

R.A.Demet TAÇ