The punishments dictated by most laws serve a number of purposes, one being deterrence. That seems especially true for laws whose main consequence is a fine. But shouldn't it be the case that the punishment should be the same for every person, so that every person is equally deterred?
When the punishment is a fine, this is almost definitely not true. A $100 fine is a big deal to someone who makes $30K a year, about $24K after taxes. That person would have to work more than a full day to pay off the fine. And at that salary, they may be living paycheck to paycheck and won't even have $100 available to pay. In contrast, for someone who makes $100K per year, it would only take about 3 hours. But for someone who pulls in multi-millions a year, $100 is pocket change, something they earn in minutes, not hours.
But if you fine people an amount of time, then it is fair to everyone, because everyone has the same 168 hours per week. Of course, you can't take time from someone, and it doesn't make sense to force someone to do 1 hour of community service. So you just fine them the amount of money they earn in 1 hour. The $30K-earning worker pays $12 (or $15 if you don't account for taxes), but the hedge-fund manager pays $500.
Now the fine is much closer to being an equal deterrent to both people.
When the punishment is a fine, this is almost definitely not true. A $100 fine is a big deal to someone who makes $30K a year, about $24K after taxes. That person would have to work more than a full day to pay off the fine. And at that salary, they may be living paycheck to paycheck and won't even have $100 available to pay. In contrast, for someone who makes $100K per year, it would only take about 3 hours. But for someone who pulls in multi-millions a year, $100 is pocket change, something they earn in minutes, not hours.
But if you fine people an amount of time, then it is fair to everyone, because everyone has the same 168 hours per week. Of course, you can't take time from someone, and it doesn't make sense to force someone to do 1 hour of community service. So you just fine them the amount of money they earn in 1 hour. The $30K-earning worker pays $12 (or $15 if you don't account for taxes), but the hedge-fund manager pays $500.
Now the fine is much closer to being an equal deterrent to both people.
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