Two courtesy of Don Boudreaux, first John Nye on income differences and the quest for status and "positional goods."

But ironically, the very economic growth that has fostered greater material equality of consumption in the industrial era, and the expectations of continued improvements in both absolute welfare and relative equality that have accompanied this growth are likely to make the perception of inequality worse no matter what the data can be made to demonstrate...

Perhaps the real issue that will be taken up by the other commenters will be to discuss why certain inequalities which are also unevenly distributed — such as looks, intelligence, ability, or personality — do not invite as much social envy or opprobrium as disparities in income or wealth resulting from hard work or shrewd dealing. These differences are probably as large or larger than the measured inequalities in dollar income, yet go unmeasured and often excite no commentary in discussions of inequality. Sometimes differences in income are simply byproducts of these differing endowments. But it is rare that policies are directly and specifically designed to tax those whom nature has favored unfairly rather than those who have chosen to convert their advantages into cold hard cash.

and a letter today in the Wall Street Journal from Mark Douglass:

Regarding "Mrs. Pelosi’s VAT": Several years ago when our children were very young, my wife and I hosted a different European au pair each year for six years. During the course of their stay in America, each au pair proudly commented that in their respective European country medical care was free.

When their time with us came to an end, each au pair went to the Mall of America and purchased several pairs of jeans, as well as other clothes, before returning home. At the time, jeans cost between $15 and $30 each. I asked these young women why they were buying so many jeans before returning to their country. With some astonishment at my lack of understanding, they explained that the same jeans in their country retailed for between $80 and $100. The price differential, of course, was due to the value-added tax and the higher costs of doing business in European welfare states.

I thought to myself, "Ah, but your medical care is "free."