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July 24, 2008

Rabbi Berel Wein: On the road again --- and again and again

Richard Z. Chesnoff: Mideast Refugees --- Failure vs. Success

JWisdom:: Word power is about more than vocabulary by Rabbi Sroy Levitansky

July 23, 2008

Jonathan Tobin: The Mufti of Jerusalem's Nazi ideology lives on among contemporary Islamists

The Kosher Gourmet by Joe Gray: Smoked paprika turkey meatballs simmered in red wine and tomato sauce

JWisdom:: 'Routine' doesn't need to mean ‘rote’ By Rabbi David Aaron

July 22, 2008

Yossi Klein Halevi: Dear Barack Obama

Elliot B. Gertel: Eli Stone: Self-indulgent, arrogant corporate attorney as modern-day prophet

JWisdom:: Three Weeks - Nine Days - One Purpose by Rabbi Mordechai Becher

July 21, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Spending your kids' money

Mitch Albom: A grim exchange illustrates a key difference

JWisdom:: The Holocaust in the Perspective of Faith: Hammered on the Anvil --- Severed by the Sickle by Rabbi Nosson Scherman

July 18, 2008

Rabbi Nathan Lopes Cardozo: The Sanctification and Importance of Time

Caroline B. Glick: US wants it absolutely clear it has no intention of attacking Iran's nuclear installations

Mona Charen: What can you say about a people who welcome a child murderer as a hero?

JWisdom:: Living a dog's life, dawg? by Rabbi Dovid Gross

July 17, 2008

Steven Emerson: Deals with devils

Libby Lazewnik: One Step at a Time

JWisdom:: Leader the follower? by Rabbi Sroy Levitansky

July 16, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Poaching humans

The Kosher Gourmet by Linda Gassenheimer: Meaty pasta salad with summer berries perfect for warm evenings

JWisdom:: Keeping A Secret by Rabbi Mordechai Becher

July 15, 2008

Dennis Prager: False Equation: Opposing Same-Sex Marriage and Opposing Interracial Marriage

Joel Greenberg: Researchers look to Israeli circumcision program to help combat AIDS 'Alternatives' to Logic Won't Work

JWisdom:: Re-Jew-venating prayer, Part V: Why Judaism ISN'T Spiritual by Rabbi David Aaron

July 14, 2008

Jonathan Rosenblum: A warning from Canada to those who value life

Jonathan Tobin: 'Alternatives' to Logic Won't Work

JWisdom:: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Poland's Unique Antisemitism, Part II

July 11, 2008

Rabbi Francis Nataf: It's hard to be humble when you're great

Caroline B. Glick: A tale of two hostages

JWisdom:: Profane for Prophet by Rabbi Sroy Levitansky

July 8, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Q. Duty to save gullible from themselves?

Frank J. Gaffney, Jr.: Islamists have the West just where they want us

JWisdom:: Putting the Spirit Back into Spirituality, Part 3: The Fully Loaded Human Being by Rabbi Dovid Gross

July 3, 2008

Rabbi Dr. Abraham J. Twerski: A spiritual budget (TOUCHING!)

Jeff Jacoby: Israel still paying for its defeat

JWisdom:: Re-Jew-venating prayer, Part IV by Rabbi David Aaron

JWisdom:: The Moses Method by Rabbi Sroy Levitansky

July 2, 2008

Jonathan Tobin: Appeasers Make Poor Patriots

The Kosher Gourmet By Kathleen Purvis: Slaw, y'all: For BBQs or Sabbath dinner, these southern recipes are something else!

JWisdom:: Rabbi Mordechai Becher: Jewish Rx for A Simpler Life

July 1, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Q. I think it's important to leave a legacy to my children. How much should I save towards this end?

Paul Greenberg:A President who is history deficient?

JWisdom:: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Poland's Unique Antisemitism

June 30, 2008

Jonathan Rosenblum: Remembering the architect of Torah Judaism for the modern world

Abe Novick: Hulk: Still a Jew?

JWisdom: : Putting the Spirit Back into Spirituality, Part 2: The Abandoned Child

June 26, 2008

Rabbi Abraham J. Twerski: Quantum leap to evil

Caroline B. Glick: Victimized families must not be allowed to dictate policy

June 25, 2008

Rabbi Yonason Goldson: Today in Biblical History: King Jeroboam of Israel prevents pilgrimage to Jerusalem

Jonathan Tobin: Real Friends and Real Enemies

JWisdom: Raping of reason By Rabbi Sroy Levitansky

June 25, 2008

Steven Emerson: Kristof: Never Mind the Terrorists

Stratfor Intelligence Briefing: Mediterranean Flyover: Telegraphing an Israeli Punch?

JWisdom: Rabbi David Aaron: Re-Jew-venating prayer, Part III

June 24, 2008

Caroline B. Glick: What were they thinking!?

Frank J. Gaffney, Jr.: Guilty knowledge

JWisdom: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Warping Innocence

June 23, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Diploma dilemma

Jeff Jacoby: A world without children

JWisdom: Rabbi Dovid Gross: Putting the Spirit Back into Spirituality --- Introduction

June 20, 2008

Rabbi A. Henach Leibowitz: Man: The Crowning Glory of Creation

Caroline B. Glick: Israel's darkest week

JWisdom: We aren't worthy? by Rabbi Sroy Levitansky

June 19, 2008

Rabbi Elazar Meisels: The saints who don't come marchin' in

Chris Christoff: Muslim woman demands an apology from Obama after camera snub

June 18, 2008

Jonathan Tobin: Still Dancing Around Jerusalem

The Kosher Gourmet by Steve Petusevsky: Chilled fruit and vegetable soups

JWisdom: Souls Need A Check Up? by Rabbi Mordechai Becher

June 17, 2008

Rabbi Avi Shafran: Baby Einstein

Caroline B. Glick: Bush's rhetoric, Bush's policies

JWisdom: Re-Jew-venating prayer, Part II by Rabbi David Aaron

June 16, 2008

Varda Branfman: Bob Dylan, won't you please come home?

Diana West: Academic dares to question the 'religion of peace'

JWisdom: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Positive Backfire

March 22, 2007

J-Rhythms with Avraham Rosenblum: JWR's cutting-edge music program showcasing performers -- singers, song writers, musicians, and bands -- who learn and live the Torah lifestyle (OUR NEWEST IGODCAST !)

Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review Oct. 24, 2006 / 2 Mar-Cheshvan, 5767

Envy is bad economics

By Paul Johnson


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http://www.JewishWorldReview.com | In London the media have been foaming at the mouth over the fact that the average chief executive in Britain's top 100 companies is paid 127 times more than the average wage earner. Such high pay has been widely denounced as "excessive," with business leaders joining in the hue and cry. Such indignation is misconceived and pointless. If remuneration at 127 times the average wage is wrong, what is right? One hundred times? Fifty? Twenty? Twice? Who's to say? The market determines these things. If you don't like the market's decisions, the alternative is wage controls, with bureaucrats fixing the scales. Who wants that? And when has it ever worked?


Pay is best seen in terms of spending power or the relative ability to live well. As such, there have always been huge differences throughout history. In England the Domesday survey of 1086 was the first ever undertaken of individual assets in a country. It reveals a bottomless gap between the nobles, bishops and abbots (about 100 men) at the top of society and the serfs at the bottom. The ratio was probably 1,000-to-1 or more.


However, these wealthy men were obligated to supply the crown with what was called knight service, a specific number of fully armored and mounted men, trained for battle and able to serve the crown for 40 to 60 days each year. The number of men so supplied was determined by the amount of land the noble or churchman held. This system led to endless rows and legal actions between the wealthy and the crown, which sometimes fueled rebellions. The rich claimed they were being "ruined" by the tax. One example of a universal truth: There are hidden disadvantages to being really wealthy.


During the Renaissance the head of the Medici bank in Florence had, no doubt, an annual income that was at least 1,000 times the spending power of the average Italian peasant. To defend his assets the banker had to go into expensive civic politics, build fortresslike city houses and fortified country villas and maintain a large contingent of armed horsemen. Moreover, he was expected to devote huge sums of money to the glory of God and the splendor of his family by building and endowing churches or private chapels in cathedrals and embellishing them with altarpieces created by the day's leading Tuscan and Flemish painters.


This art patronage was highly competitive and expensive. A Florentine banker might pay heavily to have a painter such as Hans Memling in Bruges produce a major (9-foot-wide) multipaneled work and then have it transported to Antwerp, shipped to Italy and carted overland to Florence, where, once there, it required ten porters just to carry it across the city.


In every age the rich have had inescapable obligations concerning their wealth. I've just been reading David Cannadine's biography of Andrew Mellon, the Pittsburgh entrepreneur and banker who founded some of America's greatest businesses and then served as Treasury Secretary for 11 years (1921 — 32). During the last years of his long life Mellon was rewarded for his public service by being prosecuted for imaginary tax evasion by President Franklin D. Roosevelt, a man who, though a lifelong recipient of unearned income, seems to have believed that creating great wealth is somehow immoral. Mellon seems to have spent little of his wealth in self-indulgence of any kind, instead using it to buy works of art that he eventually presented to the nation when founding the glorious National Gallery of Art in Washington, D.C.


I don't believe people earning average incomes are as envious of the rich as media commentary supposes. The kind of relativity people care about is that their incomes rise, their assets are greater than their parents' and their children do even better than they've done.


Such progress is certainly taking place, especially in countries like the U.S. and Britain that run relatively unshackled market economies. In the Oct. 2 issue of FORBES I learned that in the five years since the attack on the Twin Towers, America's GDP has increased by $3 trillion. This increase alone is roughly equivalent to the entire output of the world's fastest-growing economy, China. Clearly, scores of millions of Americans are doing better than ever before. That being so, the astronomical sums earned by a few on Wall Street are of small importance. In my observation great wealth brings more worries than happiness: several different homes to maintain and protect from thieves, squabbles with servants, the terror of a litigious divorce and fights with demanding children, as well as the fear of the wealth and all its trappings vanishing like fairy gold.

When a Difference Matters
Of course, huge differentials between countries present real problems. Average incomes in the richest countries can easily be as high as 100 times those in the poorest. This wouldn't matter as much if the really poor countries were slowly improving. But, because of bad government and internal wars, these countries are growing poorer, both relatively and absolutely.


At the same time China and India — once the world's two poorest big countries — are making giant strides toward affluence, each year pulling tens of millions of their citizens into the lighted circle of the good life. I believe that in due course the really wretched parts of the world will learn more from the India-China experience than they have ever been able to absorb from the West. The once poor can teach the still poor. I take an optimistic view of these things.


Envy is a foolish and self-destructive emotion. It is also thoroughly bad economics.

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Previously:

10/11/06: Better to Borrow or Lend? Rethinking conventional wisdom
08/22/06: Don't practice legal terrorism
08/08/06: A summer rhapsody for a pedal-bike
08/03/06: Why is there no workable philosophy of music?
07/11/06: Historically speaking, energy crisis is America's opportunity
07/06/06: The misleading dimensions of persons and lives
06/06/06: First editions are not gold
05/23/06: A downright ugly man need never despair of attracting women, even pretty ones
04/25/06: Was Washington right about political parties?
04/12/06: Let's Have More Babies!
04/05/06: For the love of trains
03/29/06: Lincoln and the Compensation Culture
03/22/06: Bottle-beauties and the globalised blond beast
03/15/06: Europe's utopian hangover
03/08/06: Kindly write on only one side of the paper
02/28/06: Creators versus critics
02/21/06: The Rhino Principle

© 2006, Paul Johnson

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