Narrowing The Gap Between Rich and Poor Is An Unintelligent Aim.

 Reducing the gap between rich and poor sounds very much like a noble goal, but in my opinion there are better metrics. It is far more important to ensure an improvement in the standard of living of those who are poor.

At first sight, the two might seem like they're the same thing, but they are very much different. Suppose that a policy were to reduce the standard of living of the rich, whilst having zero impact on anyone else in society. Inequality would have been reduced, but it would be of no comfort to the poor.

 Economic Forum (WEF) Davos Agenda meeting in Paris, France, January 26, 2021. /GettyOn the other hand, a rich person undertaking a new business venture might well increase their own wealth significantly whilst creating employment and consequently reducing poverty. The person who does so needs to pay their fair share of tax, further helping to reduce poverty, but not so much tax as to discourage them from taking the risk in the first place.

In that sense, I am indifferent to the financial situation of those who are rich. I do not particularly care whether the overall income of the rich increases or decreases, provided that the median standard of living improves and that poverty reduces in absolute terms.

If there is a pressing need for a target-driven approach, then it is essential to have the right target. There are relatively few people in society who are very rich: that wealth would not go very far towards helping the millions living in poverty. A focus on the rich-poor gap is also likely to leave the average person being somewhat forgotten. In recent years, we've seen a significant squeeze on middle-income families. CGTN. Jonathan Arnott - Former MEP.