Our politicians have been talking non-stop about pay inequality. They drone on about how the Middle Class is not only disappearing, but losing purchasing ground. The claim that this is because of deficiencies in our Republic's practice of capitalism.
For the purposes of this discussion, I will ignore that the classifications of "Poor", "Middle Class" and whatever the name is for those above the middle class but not a "one percenter" fail to recognize that the membership in these defined areas is always in flux; that people move up and on all the time. Unlike Europe, any classification is not one that you remain in for your entire life...at least not in most cases.
But, back to the discussion of assuming that inequality needs to be "fixed."
I will tell you how to do it almost instantly. Really!
Simply index the prices of everything that people buy. You get a card from the government that identifies you "class" and that is based on your income. All prices are indexed. Food, cars, houses, vacations, insurance, bus rides, taxi fares,...everything...is indexed so that everyone pays the same percentage of their earnings for everything. As an example, a Ford sedan doesn't cost $18,000. For a poor family it might cost 5000, but for a millionaire it might cost $200,000. The same approach with food too should apply; a Middle class family might pay $400 for a weeks food for 4, while a rich family of 4 would pay $2,000 for the same amount of food. That way everyone would be equal, right?
So the "problem" is now fixed.
I don't pretend to discuss or identify how, under this kind of approach you would motivate people to work harder to earn more money. I have no idea...but today's politicians seem to discount that as being important to our country or our individual well-being, so I won't spend time even considering it. Tell you representatives about my idea...bet they love it. Of course, I strongly suspect that if they enacted it as law they would exempt themselves from its application, just as they exempted themselves from application of the RICO statutes...they aren't 100% nuts.