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The Logic of Life: The Rational Economics of an Irrational World Tim Harford February 10, 2009 |
Free market will drive out bigotry, since prejudice is inferior and will eventually lose to the competition. This is, however, a long-term view. For a quick bet, it is statistically better to hire from a historically advantaged group, since the chances of getting a good talent is higher. Yes, this is a form of discrimination, since the decision is not based on individual merit — college grads are not necessarily smarter, men are not always stronger, young is not always more energetic — but statistically they are and the bet frequently pays off. The discrimination is economically rational.
At the same time, human beings strongly like to “belong.” We need to have relatives, friends, and social networks that are rich and supporting. This innate desire pushes us to “fit in” — trying to conform to a norm. For some, this desire drags those youngsters into gang, violence, drugs, teen pregnancy, or simply not academically outstanding. Those who tried to thrive in school became lonely or, worse, shunned from the peer group.
Tim Hartford explained, as above, that discrimination is rational. He was not defending the behavior, but suggested that the reversal requires much stronger incentives. It is depressing to be convinced that discrimination actually pays. It is also politically wrong to state so. I cannot imagine the hate mail he gets from publishing this book.
Tim also explained that politics is about minority interest, not the other way around. For a politician to be elected, he or she must win votes that matter. It pays to spread costs to a large population to reward a smaller group that swing the outcome of an election. All politicians have campaigned to tax the largest population to benefit a concentrated small group of people that matter to his or her election. None of them would champion the real worthy causes, since they won’t concentrate the benefits to the minority that win elections. There will be little hope for global warming, world economy, world peace, etc.
Yep, depressing.