Majority of wealth in the world is with the minority of people leading to unequal distribution of money and issues such as poverty in society. As a solution to this problem, what if all the wealth in the world is divided equally among the people so that no one is poor and no one is rich. Sounds like an awesome and innovative idea, right??
First of all, the idea of equal wealth among the people will end competition. Competition is the force which thrives innovation, the development of new ideas, new products, services, and thereby development of economy and society. Competition improves the intellect of an individual and a whole society . The hunger for betterment and wealth creation; to be the best in class is what improves systems and makes any society futuristic. For an analogy, let’s assume a class of students. For this particular class, it is decided that whatever marks the students will get, it will be averaged and equal marks will be given to each student. In this scheme, the capable students will not put extra efforts, study and learn as they know this will not come to them in a whole whereas the incapable will become idle & lazy thinking that the others are doing their job for him & that he need not do anything . This will lead to deterioration of one’s intellect, lack of knowledge and skills.
In such a system, ingredients essential for development of an individual and a society such as ambition, hard work, dedication, excellence, ethics, etc. will not exist. An industrialist and a beggar have a huge difference in the mindset. An industrialist will invest the excess money in various industrial sectors and workforce giving employment to people whereas a beggar will simply spend the excess money relentlessly. If all the people have the same purchasing power, this will lead to inflation for a few ranges of products and others will lose their value and importance in the market. This will have a very bad effect on the cash flow in the markets. For maintaining global peace one of the essential factors is monetary power so that people can be led in some direction. The concept of equal wealth among all destroys this power.
The above ideology of equal wealth among all will require an enforcing organisation for its implementation in the long run. This is because it is impossible to make every person walk on the same principle; the monk principle (give free service to the society and to be satisfied with what one has).
Implementing the above ideology will decrease the value of money, deteriorate lifestyle and will lead from social equilibrium to a worldwide chaos. Hence, this ideology of a chaotic state is not applicable to the real world.