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Income inequality and the ‘Groupon Theory of Morality’
Income inequality and the ‘Groupon Theory of Morality’
Dec 25, 2025 12:55 PM

For many years I was unable to understand the reasoning behind the claims that e inequality is a moral issue that only applies at the group level. Then it came to me like an epiphany—or more accurately, as a Groupon email.

According to Wikipedia, the Groupon works as an assurance contract: If a certain number of people sign up for an offer, then the deal es available to all; if the predetermined minimum is not met, no one gets the deal that day.

The popular argument for claiming that e inequality is a moral issue appears to rely on a similar idea: If a certain number of people agree to abide by a moral obligation, then the obligation is required by all; if the predetermined minimum is not met, no is required to meet the obligation.

In the case of e inequality, few people are willing to agree that it pelsa moral obligation, much less one they must abide by. So the e inequality moralists believe that force must be factored into the equation. The formulation then es:

Individuals have a moral obligation to do X. However, unless a certain number of people are forced to do X, then no particular individual should be expected ply with this moral obligation.

Admittedly, this is not pletely accurate summation of their position. Many e inequality moralists think the obligation only pertains to other people (the rich, the “1%”, bankers, etc.) and not to them. But in order to present their case in the best possible light I will assume (whether ports with reality or not) that they are neither hypocrites nor moral relativists. (Economist Bryan Caplan states the case less generously, but more realistically: “An egalitarian who defers to the law, does cost-benefit policy analysis, and refuses to go above and beyond the call of duty has e everything he hates.”)

Despite being familiar with most major ethical systems, I am at a loss to see how this fits in with any of them. Surely it must, though, for many people appear to believe they are being morally consistent. I’m curious as to whether there are any other moral obligations that fit this format.

Those who think e inequality is a moral issue but have never stopped to think what moral obligation is being violated or why they are allowed to exempt themselves will accuse me of creating a strawman. Perhaps I have, albeit unintentionally. If so, I hope someone will set me straight by providing a coherent and morally defensible argument for their position. Anyone want to take a crack at that?

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