The American Dream Means Inequality and the Freedom to Be So

Several months ago, Obama was accusing income inequality as threatening the American Dream. His accusation proves he knows nothing of the principle behind this idea. The real threat is transforming America from the land of opportunity to the land of permission.

Income inequality does not hinder opportunities for Americans. An eleven year-old girl was recently forbidden from selling cupcakes without a permit. Several lemonade stands have been shut down through the years. The U.S. Small Business Administration provides information and hundreds of permissions for all fields and sectors of business. In all of these examples of lower-class citizens pursing the Dream, there is no evidence that suggests the gap between the rich and poor, nor the rich themselves, is even an obstacle. The only enemy that has ever weighed down these entrepreneurs is the over-regulating government.

Alex Epstein best explains how income inequality is not a problem, and in fact preserves individual rights: 

Critics of income inequality act as if American wealth is a communal pie that belongs equally to all of us. But the vast wealth that exists in America has been created–through the productive activities and voluntary arrangements of individuals. And individuals do not necessarily create the same amount of wealth. Because all wealth is created, it rightly belongs to those who earn it (or their chosen beneficiaries)–and no one can rightly claim to deserve wealth earned by others.

This is the principle behind the long-gone American Dream: the right to create wealth and opportunities. The principle means that all citizens have the freedom to earn the income that their ability, creativity, and hard work rewards them.

But under Obama’s presidency, Congress published more regulations in one year than was published between 2005-2008. This makes generating a higher income with creative ideas only harder for poor citizens. The sooner Americans understand that prosperity presupposes freedom, the better chance they’ll have at restoring their land of opportunity.