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<title>Bryan Caplan at EconLog</title>

<link>http://econlog.econlib.org/</link>

<description></description>

<copyright>Copyright 2012</copyright>

<lastBuildDate>Thu, 09 Feb 2012 14:30:15 -0500</lastBuildDate>

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<title>The Career Consequences of Failing versus Forgetting, by Bryan Caplan</title>

<description><![CDATA[If you're reading this blog, you probably didn't fail a lot of classes in school.&nbsp; But I bet that you've totally <i>forgotten</i> a lot of those classes.&nbsp; I got A's in junior high and high school Spanish, but barely speak a word of it.<br /><br />Now ask yourself this:<br /><blockquote>How would your career have been different if you had <i>failed</i> all the classes you've totally forgotten?<br /></blockquote>According to the human capital model, failing (i.e., never knowing) course material should have exactly the same career consequences as <i>forgetting </i>(i.e., no longer knowing) course material.&nbsp; Either way, you lack the skills - and the labor market should treat you accordingly.<br /><br />According to the signaling model, in contrast, the consequences of failing and forgetting can totally diverge. When you fail to learn useless material, you send a bad signal.&nbsp; When you demonstrate mastery of useless material, you send a good signal - whether or not retain what you learned.&nbsp; Employers naturally snub people who fail, yet smile upon those who merely forget.<br /><br />Take me.&nbsp; If I'd failed Spanish, I couldn't have gone to a good college, wouldn't have gotten into Princeton's Ph.D. program, and probably wouldn't be a professor.&nbsp; But since I've merely <i>forgotten </i>my Spanish, I'm sitting in my professorial office, loving life.<br /><br />How about you?&nbsp; How would your life have been different if you had failed all the classes you've totally forgotten?<br /><br />]]>  (31 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/the_career_cons.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/the_career_cons.html</guid>

<category>Economics of Education</category>

<pubDate>Thu, 09 Feb 2012 11:38:51 -0500</pubDate>

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<title>A Brief Letter on Signaling, by Bryan Caplan</title>

<description><![CDATA[I heard a rumor that a famous economist was asking about my book in progress, <i>The Case Against Education</i>.&nbsp; So I sent him the following email:<hr><br />I heard you were asking about me at the GMU dinner earlier 
this week.&nbsp; I am indeed working on a book defending the empirical 
importance of the signaling model of education.&nbsp; I'm happy to discuss my 
project at length, but here's the short version:
<br />
<br />1. The vast majority of research on the return to education - including 
IVs, RTCs, etc. - does not empirically distinguish between human capital 
and signaling.&nbsp; The better papers explicitly admit this.
<br />
<br />2. Students spend a lot of time learning subjects irrelevant to almost 
all occupations (except, of course, teaching those very same irrelevant 
subjects).
<br />
<br />3. Teachers often claim that they're "teaching their students how to 
think," but this goes against a hundred years of educational 
psychology's Transfer of Learning literature.
<br />
<br />4. When education researchers measure actual learning, it's modest on 
average, and often zero.&nbsp; And yet employers still pay a big premium to 
e.g. college students who've learned little or nothing.&nbsp; The same goes 
for the return to college quality.&nbsp; It doesn't seem to improve learning, 
but it substantially improves income.
<br />
<br />5. There is a growing empirical literature using the El-SD (employer learning - statistical 
discrimination) approach to measure the effect of 
signaling.&nbsp; It usually finds moderate signaling, at least for 
non-college grads.&nbsp; It looks like you have to finish college to quickly 
get employers to reward you for measurable pre-existing skills.
<br />
<br />6. The sheepskin literature finds large effects of merely finishing 
degrees.&nbsp; They eventually fade out, but it takes 15-25 years.&nbsp; This 
isn't iron-clad evidence for signaling (what would be?), but it's 
strongly supportive.
<br />
<br />My book will also argue that ability bias is a much bigger problem than 
the David Card consensus will admit, and that the positive externalities 
of education are overrated.&nbsp; So the social return to education turns out 
to be quite low.&nbsp; In terms of policy implications, I'm going to argue 
for large cuts in government spending on education, and a lot more 
vocational education on the German model.
<br /><br /> ]]>  (6 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/a_brief_letter.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/a_brief_letter.html</guid>

<category>Economics of Education</category>

<pubDate>Thu, 09 Feb 2012 11:06:26 -0500</pubDate>

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<title>How Deserving Are the Poor?  Debate Wrap-Up, by Bryan Caplan</title>

<description><![CDATA[The <a href="http://econfaculty.gmu.edu/bcaplan/smithdebate.htm">resource page</a> for last week's Caplan-Smith debate is now up, complete with <a href="http://vimeo.com/m/36262871">full video</a>.&nbsp; Here's Karl's <a href="http://modeledbehavior.com/2012/02/07/the-deserving-poor/">post-debate statement</a>.&nbsp; It's basically a more detailed version of his original statement.&nbsp; But he does introduce two new points I want to answer:<br /><br />1. <i>Genetic determinism.</i>&nbsp; Here's Karl:<br /><blockquote>As it happened I was also debating Bryan Caplan, who I thought and still
 think, would admit that one's actual level of conscientiousness is 
probably genetically determined. And, further that this personality 
attribute underlies most of what the normal world would call "laziness."<br /></blockquote>Actually, I've <a href="http://econlog.econlib.org/archives/2011/06/genetic_determi.html">explicitly disavowed genetic determinism</a> for any interesting behavioral trait.&nbsp; So does every behavioral geneticist.&nbsp; The proof is simple: if genetic determinism were true for any trait X, identical twins would have exactly the same value of X.&nbsp; They almost never do.&nbsp; Conscientiousness is a case in point; <a href="http://econlog.econlib.org/archives/2011/03/heritabilities.html">heritability</a> estimates are typically 40-60%.&nbsp; None approaches 100%.<br /><br />In any case, genetic determinism is a red herring.&nbsp; You could just switch to a "genetic + environmental determinism" hybrid view, then reiterate Karl's fundamental position.&nbsp; Which brings us to:<br /><br />2. <i>Free will</i>.&nbsp; Karl:<br /><blockquote>[I]f one is sympathetic towards those born blind does it not follow that one should be sympathetic towards those born lazy?<br /><br />Now, that having been said I recognize that there will be a huge 
visceral aversion to this line of reasoning. And, so I want to do what I
 can to calm that aversion.<br /><br />My point was that the reason we feel so differently about 
disabilities like blindness as opposed to disabilities like laziness, is
 that its really difficult to fake being blind. Thus there is much less 
concern that the blind person is taking advantage of you by lying about 
their blindness.<br /><br />Its much more difficult to confirm laziness. So much so that people 
are hesitant to think of it as not a innate property of the person at 
all. However, our psychological research strongly suggests that this is 
not true.</blockquote><p>But laziness is <i>totally</i> different from blindness: laziness is a choice, and blindness isn't.&nbsp; Karl ably explained my reasoning during the debate: Laziness, unlike blindness, responds to sufficiently extreme incentives, and something can only respond to incentives if you are able to do otherwise.&nbsp; <br /></p><p>Consequentialists naturally tend to misinterpret this statement as saying, "We should punish laziness in order to reduce laziness."&nbsp; But my point is about philosophy of mind, not policy.&nbsp; The responsiveness of laziness to incentives shows that being lazy is a choice.&nbsp;&nbsp;<span style="font-family:Arial">&nbsp;</span> <br /></p><p>Of course, you could just bite the bullet and insist that what appear to be choices are never "really" choices.&nbsp; But that goes against all mental experience, and should be dismissed as <a href="http://www.earlymoderntexts.com/pdfbits/reip.html">absurd</a>.<br /></p><p>One last point: Many people (<a href="http://www.themoneyillusion.com/?p=13010">Scott Sumner among them</a>, I fear) would be tempted to complain that I stubbornly cling to whatever moral intuitions I deem to be "obvious," while Karl actually tries to prove his moral conclusions.&nbsp; My reply: Karl rests all of his moral conclusions on a single utilitarian premise.&nbsp; And what is that premise?&nbsp; If you say, "Just another intuition," you're being generous.&nbsp; The utilitarian intuition is a paper tiger, subject to a <a href="http://en.wikipedia.org/wiki/Utilitarianism#Criticisms">long-standing list of devastating counter-examples</a>.&nbsp; Utilitarians' standard replies are to (a) change the subject by denying the empirical importance of the counter-examples, and (b) dogmatically accept every absurd implication of their view while criticizing the "dogmatism" of everyone who demurs.&nbsp; If this isn't ridiculous enough, utilitarians proceed to continuously violate their own ethic by failing to spend all their spare resources on desperate strangers. <br /></p><p>I'm not saying that human happiness isn't morally important.&nbsp; I'm saying that human happiness is one morally important thing on a <a href="http://home.sprynet.com/%7Eowl1/objectiv.htm">long list of morally important things</a>: desert, justice, honesty, achievement, truth, beauty, and liberty are merely the beginning.&nbsp; The only way to weigh them against each other is with clarifying examples and reflection.&nbsp; Morality would be a lot simpler if utilitarianism were true.&nbsp; But it's better to be broadly right than simply wrong.</p>]]>  (16 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/how_deserving_a_1.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/how_deserving_a_1.html</guid>

<category>Economic Philosophy</category>

<pubDate>Thu, 09 Feb 2012 00:34:43 -0500</pubDate>

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<title>Being Single Is a Luxury, by Bryan Caplan</title>

<description><![CDATA[I'm baffled by people who blame declining marriage rates on poverty.&nbsp; Why?&nbsp; Because <i>being single is more expensive than being married</i>.&nbsp; Picture two singles living separately.&nbsp; If they marry, they sharply cut their total housing costs.&nbsp; They cut the total cost of furniture, appliances, fuel, and health insurance.&nbsp; Even groceries get cheaper: think CostCo.<br /><br />These savings are especially blatant when your income is low.&nbsp; Even the official poverty line <a href="http://www.census.gov/hhes/www/poverty/data/threshld/thresh10.xls">acknowledges them</a>.&nbsp; The Poverty Threshold for a household with one adult is $11,139; the Poverty Threshold for a household with two adults is $14,218.&nbsp; When two individuals at the poverty line maintain separate households, they're effectively spending 2*$11,139-$14,218=$8,060 a year to stay single.<br /><br />But wait, there's more.&nbsp; Marriage doesn't just cut expenses.&nbsp; It <a href="http://econlog.econlib.org/archives/2012/01/the_college_pre.html">raises couples' income</a>.&nbsp; In the NLSY, married men earn about 40% more than comparable single men; married women earn about 10% less than comparable single women.&nbsp; From a couples' point of view, that's a big net bonus.&nbsp; And much of this bonus seems to <a href="http://www.springerlink.com/content/2ch2fakefhdhm6nd/">be causal</a>.<br /><br />If you're rich, admittedly, you have to consider the <a href="http://en.wikipedia.org/wiki/Marriage_penalty">marriage tax</a>.&nbsp; But weighed against all the financial benefits of marriage, it's usually only modest drawback.<br /><br />Yes, you can capture some these benefits simply by cohabitating.&nbsp; But hardly all.&nbsp; And cohabitation is <a href="http://www.familyfacts.org/briefs/9/cohabitation-vs-marriage-how-loves-choices-shape-life-outcomes">far less stable than marriage</a>.&nbsp; Long-term joint investments - like buying a house - are a lot more likely to blow up in your face.&nbsp; And while there may be some male cohabitation premium, it's <a href="http://scholar.google.com/scholar?hl=en&amp;q=%22cohabitation+premium%22&amp;btnG=Search&amp;as_sdt=0%2C47&amp;as_ylo=&amp;as_vis=0">smaller than the marriage premium</a>.<br /><br />If being single is so expensive, why are the poor far less likely to get married and stay married?&nbsp; I'm sure you could come up with a stilted neoclassical explanation.&nbsp; But this is yet another case where <a href="http://econfaculty.gmu.edu/bcaplan/pdfs/behavioral.pdf">behavioral economics</a> and <a href="http://econlog.econlib.org/archives/2011/11/poverty_conscie.html">personality psychology</a> have a better story.&nbsp; Namely: Some people are extremely impulsive and short-sighted.&nbsp; If you're one of them, you tend to mess up your life in every way.&nbsp; You don't invest in your career, and you don't invest in your relationships.&nbsp; You take advantage of your boss and co-workers, and you take advantage of your romantic partners.&nbsp; You refuse to swallow your pride - to admit that the best job and the best spouse you can get, though far from ideal, are much better than nothing.&nbsp; Your behavior feels good at the time.&nbsp; But in the long-run people see you for what you are, and you end up poor and alone.<br /><br /> ]]>  (41 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/being_single_is.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/being_single_is.html</guid>

<category>Family Economics</category>

<pubDate>Wed, 08 Feb 2012 02:01:14 -0500</pubDate>

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<title>Murray, Frum, and the Hurricane Analogy, by Bryan Caplan</title>

<description><![CDATA[<a href="http://www.thedailybeast.com/articles/2012/02/06/charles-murray-book-review.html">David Frum's critique</a> of Charles Murray's <a href="http://www.amazon.com/Coming-Apart-State-America-1960-2010/dp/0307453421/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1328664514&amp;sr=1-1"><i>Coming Apart</i></a> begins with an analogy:<br /><blockquote><div class="text parbase section"><p>To understand what Murray does in <i>Coming Apart</i>, imagine this analogy:</p>
<p>A social scientist visits a Gulf Coast town. He notices that the 
houses near the water have all been smashed and shattered. The former 
occupants now live in tents and FEMA trailers. The social scientist 
writes a report:<br />
</p>
</div>
<a href="http://econlog.econlib.org/mt/mt-static/html/editor-content.html?cs=utf-8" name="body_text_16" style="visibility:hidden"></a><div class="text parbase section"><p><em>The
 evidence strongly shows that living in houses is better for children 
and families than living in tents and trailers. The people on the 
waterfront are irresponsibly subjecting their children to unacceptable 
conditions.</em><br />
</p>
</div>
<a href="http://econlog.econlib.org/mt/mt-static/html/editor-content.html?cs=utf-8" name="body_text_17" style="visibility:hidden"></a>When
 he publishes his report, somebody points out: "You know, there was a 
hurricane here last week." The social scientist shrugs off the criticism
 with the reply, "I'm writing about housing, not weather."<br /></blockquote>For Frum, the "hurricane" is stagnant or falling wages for half or more of the population:<br /><blockquote>Across the developed world, we see the wages of the bottom half&nbsp;(and in 
some cases more than half) have stagnated, even as gains have accrued to
 the top 20%, bigger gains to the top 5%, and the biggest gains to the 
top 1%.<br /></blockquote>But Frum's story makes little sense.&nbsp; Divorce, out-of-wedlock births, and low labor force participation are <i>expensive</i>.&nbsp; If you're worried about being poor, you'll studiously avoid them.&nbsp; So how could economic distress be their "root cause"?&nbsp; To rewrite Frum's hurricane analogy:<br /><blockquote><p>A social scientist visits a Gulf Coast town. He notices that the 
houses near the water have all been smashed and shattered. The former 
occupants now live in tents and FEMA trailers. They're also malnourished because they keep leaving their food on the beach, where the evening tide quickly carries it out to sea.&nbsp; The social scientist 
writes a report:<br />
</p>


<a href="http://econlog.econlib.org/mt/mt-static/html/editor-content.html?cs=utf-8" name="body_text_16" style="visibility:hidden"></a>
<div class="text parbase section"><p><em>The
 evidence strongly shows that the hurricane is causing severe malnutrition.&nbsp; Back when these people had houses they kept their food inside.&nbsp; The government is turning its back on the indirect effects of natural disaster.</em><br />
</p>
</div>

<a href="http://econlog.econlib.org/mt/mt-static/html/editor-content.html?cs=utf-8" name="body_text_17" style="visibility:hidden"></a>When
 he publishes his report, somebody points out: "You know, those hungry people could keep their food in their tents at night." The social scientist shrugs off the criticism
 with the reply, "I'm writing about malnutrition, not food storage."<br /></blockquote>My point: The hurricane should have made people <i>more</i> careful with their food.&nbsp; Yes, they experienced a natural disaster.&nbsp; But instead of prudently adjusting their behavior, they're being bizarrely short-sighted and irresponsible.&nbsp; And it makes you wonder: If this is how they act after a hurricane, would their behavior would have been even worse if the hurricane had never hit?<br /><br /><u>Update:</u> <a href="http://www.thedailybeast.com/articles/2012/02/08/answering-a-charles-murray-defender.html">David Frum replies</a>, and <a href="http://marginalrevolution.com/marginalrevolution/2012/02/from-whence-comes-this-sudden-wave-of-economic-determinism.html">Tyler weighs in</a>.<br /><br /> ]]>  (12 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/murray_frum_and.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/murray_frum_and.html</guid>

<category>Books: Reviews and Suggested Readings</category>

<pubDate>Wed, 08 Feb 2012 00:27:02 -0500</pubDate>

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<title>Don&apos;t Judge a Scholar By His Deals, by Bryan Caplan</title>

<description><![CDATA[When re-reading my recent <a href="http://econlog.econlib.org/archives/2012/02/the_deal_delusi.html">critique of Robin Hanson's "dealism,"</a> I realized that the following could come off as rather harsh:<br /><blockquote>Robin has spent decades proposing unconventional policy deals.&nbsp; His track record is an abysmal failure.<br /></blockquote>None of this means, however, that Robin <i>himself</i> is an abysmal failure.&nbsp; I don't judge a scholar by the deals he manages to push through.&nbsp; I judge him by his discovery of important truths.&nbsp; By this standard, Robin is a great success.&nbsp; His work on <a href="http://hanson.gmu.edu/innovations.pdf">betting markets</a>, <a href="http://hanson.gmu.edu/showcare.pdf">health economics</a>, and <a href="http://hanson.gmu.edu/futarchy.pdf">futarchy</a> leaves me in awe.&nbsp; Even his errors are fruitful. &nbsp; The fact that policymakers consistently ignore Robin is their abysmal failure, not his.<br /><br />By Robin's own dealist standard, he's a failure.&nbsp; So am I.&nbsp; So is almost every scholar we admire.&nbsp; Who <i>isn't</i> a failure?&nbsp; <a href="http://econlog.econlib.org/archives/2012/01/sins_of_omissio.html">Jonathan Gruber</a>, a leading architect of Romneycare and Obamacare.&nbsp; I take this as a reductio ad absurdum of dealism.&nbsp; It's far better to discover important truths that never leave the Ivory Tower than propagate errors that take the world by storm.<br /><br /> ]]>  (7 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/dont_judge_a_sc.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/dont_judge_a_sc.html</guid>

<category>Economic Philosophy</category>

<pubDate>Tue, 07 Feb 2012 09:53:47 -0500</pubDate>

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<title>What Happens When Signaling Gets Cheaper?, by Bryan Caplan</title>

<description><![CDATA[<a href="http://econlog.econlib.org/archives/2012/02/signaling_and_c.html">Arnold</a>:<br /><br /><div class="blog">
                            <div class="blogauthor">
<blockquote>My understanding of the signaling model is that it depends crucially on the <i>relative</i>
 cost of signaling to people with and without the desired trait.  You 
want the cost to be high for someone without the trait and low for 
someone with the trait.<br /><br /><p>With that in mind, I do not see how lowering the cost of signaling 
for people with the trait does anything other than cause people with the
 trait to choose the low-cost signal.  The problem with a low-cost 
substitute for a diamond is that it lowers the cost of signaling for 
people <i>without</i> the desired trait (which is a willingness to buy an expensive gift).</p></blockquote><p>The problem is that a low-cost substitute lowers the cost of signaling for <i>everyone</i>.&nbsp; So if the cost per signal falls by 50%, you have to do twice as much signaling to separate yourself from the pack.</p><p>Simple example: Suppose that (a) good students are $20,000 more productive than bad students; (b) good students endure $5000 of suffering&nbsp; per year of school; (c) bad students endure $10,000 of suffering per year of school.&nbsp; Then in equilibrium, good students need at least two extra years of schooling to distinguish themselves from bad students.&nbsp; Good students will be happy to do so, because it nets them $20,000-2*$5,000=$10,000.&nbsp; Bad students won't bother, because imitating good students nets them $20,000-2*$10,000=$0.<br /></p><p>Now what happens if the cost of education falls by 50% for both groups?&nbsp; A two-year education gap is no longer stable!&nbsp; Bad students will suddenly find two years of education profitable: $20,000-2*$5000=$10,000.&nbsp; Now the good students need <i>four </i>years of schooling to distinguish themselves.&nbsp; As a result, the total value of resources devoted to signaling remains unchanged.<br /></p><blockquote><p>If I come up with a low-cost way to earn a badge that signals 
intelligence, conscientiousness, and conformity, and that badge can only
 be earned by people with those traits, then my badge should find a 
market. <br /></p></blockquote><p>If you devise a low-cost signal that <i>only </i>high-ability people can earn, you're right.&nbsp; But that's tautological.&nbsp; In the real world, low-ability people can always try to imitate high-ability people.&nbsp; If the signal everyone used to send gets 50% cheaper for everyone, the quantity of signaling has to double to preserve separation.&nbsp; <br /></p><blockquote><p> One challenge is that when few people use the badge, it seems 
to signal non-conformity.  Thus, the early adopters of my cheaper badge 
do not do as well as they should.  But over time, there are two 
possibilities.  One is that the conformity hurdle cannot be overcome, so
 that the incumbent signaling mechanism remains dominant forever.  The 
other possibility is that eventually a tipping point is reached, and 
enough people use the new badge so that it no longer signals 
nonconformity.  At that point, the market position of the old badge 
rapidly deteriorates.</p><p>I think that we will arrive at the second equilibrium at some point.  However, predicting when it will occur is difficult.</p></blockquote>






                            </div>
                        </div>What's your best guess, Arnold?&nbsp; Now you barely sound more sanguine than I do.<br /><br /> ]]>  (9 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/what_happens_wh.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/what_happens_wh.html</guid>

<category>Economics of Education</category>

<pubDate>Tue, 07 Feb 2012 00:02:13 -0500</pubDate>

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<title>Economists&apos; Self-Conception, by Bryan Caplan</title>

<description><![CDATA[Robin <a href="http://www.overcomingbias.com/2012/02/what-is-econ-advice.html">grants</a> much of <a href="http://econlog.econlib.org/archives/2012/02/the_deal_delusi.html">my critique of dealism</a>.&nbsp; Then he offers a bet:<br /><blockquote><p>Imagine that economists were surveyed and had to choose how they'd best like to describe economic policy recommendations, as:</p>
<ol><li><strong>Morals</strong> - Arguing for the morality of actions,</li><li><strong>Deals</strong> - Helping groups find and make deals, or</li><li><strong>Showing Off</strong> - Academics do hard things in order to 
be certified by other academics as impressive, so that students, 
patrons, and readers can gain status by affiliation with them. Economic 
policy analysis is such a hard thing.</li></ol>
<p>I'd bet that at least 25% would choose option #2, and even more among those whose style leans sci/tech.</p></blockquote><p>With those three options, I'd expect the breakdown to be roughly 15% morals, 80% deals, and 5% showing off.&nbsp; But that's just because Robin omits two popular response options:</p><p>4. <b>Social Welfare</b> - Identifying the policies that are best for society as a whole.</p><p>5. <b>Smart Partisanship</b> - Identifying the most efficient way to advance the political goals you identify with.</p><p>With these extra options on the table, I'd bet on a breakdown of 5% morals (which sounds medieval to most economists), 20% deals, 5% showing off, 50% social welfare, and 20% smart partisanship.&nbsp; Do you disagree, Robin?</p><p>P.S. Maybe we could get this on the next Kauffman bloggers' survey?</p><p></p>]]>  (4 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/economists_self.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/economists_self.html</guid>

<category>Economic Philosophy</category>

<pubDate>Mon, 06 Feb 2012 14:54:31 -0500</pubDate>

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<item>

<title>The Deal Delusion, by Bryan Caplan</title>

<description><![CDATA[Robin Hanson often describes <a href="http://www.overcomingbias.com/2009/04/on-liberty-vs-efficiency.html">his normative view</a> as "dealism."&nbsp; Forget talking about "right and wrong."&nbsp; Lets take people as they are, and help them hammer out mutually beneficial deals.&nbsp; Robin's <a href="http://www.overcomingbias.com/2012/02/are-deals-near-morals-far.html">latest word</a> on this topic:<br /><blockquote><p>My closest colleagues seem to mostly take a morals view, but many of 
my students like a deals view. I think I see a correlation whereby 
academics who lean toward a sci/tech style tend to favor a deals view, 
while those who lean toward a humanities style tend to favor a morals 
view. Sci/tech styles tend more toward math, precision, and local 
incremental contributions toward specific things and plans, while 
humanities styles tend more toward bigger pictures, wider-ranging 
applications, broader interpretations, and joining larger conversations.</p>
<p>In sum, how you think about economic recommendations may depend on 
whether your thinking leans near or far. It seems deals are near, while 
morals are far, and sci/tech folks lean near, while humanities folks 
lean far. Precise formal analysis is more near, while flexible 
more-metaphorical discussion is more far. Particular suggestions for 
particular conflicts of particular groups is more near, while general 
more accessible discussion about what choices tend to be good or bad is 
more far.</p></blockquote><p>My claim: Robin's "dealism" is actually an extremely "far" doctrine.&nbsp; The doctrine is so far, in fact, that Robin keeps missing some basic facts:</p><p>Fact #1: Robin has spent decades proposing unconventional policy deals.&nbsp; His track record is an abysmal failure.&nbsp; Correct me if I'm wrong, but to the best of my knowledge:</p><ul><li>Zero Hansonian deals have been adopted.</li><li>Zero Hansonian deals have come close to adoption.</li><li>Zero Hansonian deals have been embraced by <i>any </i>normal person.&nbsp; His proposals appeal almost exclusively to fans of economics, libertarianism, futurism, and science fiction.<br /></li></ul><p>The reason for Robin's failure is pretty obvious: Most human beings are far too conventional and stubborn to even <i>consider </i>Robin's suggestions.&nbsp; And instead of trying to overcome this hurdle, Robin habitually raises the hurdle by criticizing conventional attitudes.&nbsp; <a href="http://www.overcomingbias.com/2012/02/inequality-market-failure.html">(The latest example).</a>&nbsp; No realtor would do this.<br /></p>Fact #2: People often have a very good reason to ignore deals: <i>They have better ways to get what they want.</i>&nbsp; Such as: persuasion, moralizing, trickery, and bullying.&nbsp; <br /><br />Fact #3: The effectiveness of deal-making varies widely by person.&nbsp; Some people aren't very good at making deals, but excel at moralizing.&nbsp; Consider the Pope.&nbsp; If he tried bargaining with Catholics to get them to refrain from abortion, they'd be baffled.&nbsp; But when the Pope tells them that abortion is morally wrong, millions listen.<br /><br />Fact #4: The effectiveness of deal-making varies widely by situation.&nbsp; Just one example: Suppose you bump into an angry drunk in a bar.&nbsp; Yes, you could take out your wallet and try to bargain with him.&nbsp; But that would probably make him angrier.&nbsp; You'd better off if you just profusely apologized.<br /><br />Robin paints dealism as a hard-headed pragmatic doctrine.&nbsp; But the doctrine is neither hard-headed nor pragmatic.&nbsp; It ignores basic facts and doesn't work.&nbsp; The real reason Robin is a dealist, I suspect, is moral.&nbsp; Dealism reflects Robin's sense of right and wrong.&nbsp; He thinks that it's morally right to keep your agreements.&nbsp; He thinks that it's morally wrong to fight someone who offers you a reasonable deal.&nbsp; And above all else, he thinks that it's morally wrong to be conventional and stubborn.&nbsp; <br /><br /><p></p>]]>  (4 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/the_deal_delusi.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/the_deal_delusi.html</guid>

<category>Economic Philosophy</category>

<pubDate>Mon, 06 Feb 2012 12:07:16 -0500</pubDate>

</item>



<item>

<title>Signaling and Vicky Clubs, by Bryan Caplan</title>

<description><![CDATA[Arnold's post on <a href="http://econlog.econlib.org/archives/2012/02/segregation.html">segregation</a> makes several points on the signaling model of education.&nbsp; I'm here to rebut them.&nbsp; Arnold's in blockquotes:<br /><blockquote><p>1.  Where Bryan sees college as a useful signaling device for those 
who are cognitively gifted, I see it as a useful segregation device for 
the Vickies.</p></blockquote><p>As I've <a href="http://econlog.econlib.org/archives/2006/02/mixed_signals.html">said</a> <a href="http://econlog.econlib.org/archives/2011/10/stably_wasteful.html">several</a> <a href="http://econlog.econlib.org/archives/2006/02/what_does_educa_1.html">times</a>, I see college as a useful signaling device not just for intelligence, but for two "<a href="http://econlog.econlib.org/archives/2011/12/megan_mcardle_i.html">Vicky</a>" traits: conscientiousness and conformity.&nbsp; Which makes me wonder: If college is where the Vickies go, won't college be a strong signal that you're a Vicky?&nbsp; If so, Arnold's model morphs into mine.<br />  </p><blockquote><p>2.  The segregation model predicts that as the society gets 
wealthier, the dollar cost of college will get higher.  The signaling 
model would not necessarily predict that.  In fact, it would predict 
that the market would try to find less expensive signals. <br /></p></blockquote><p>Au contraire.&nbsp; Not only does the the signaling model predict that a higher payoff for college will increase demand for signals; it predicts that if the price of signaling falls, people need to increase their <i>quantity </i>of signaling to remain separate from the pack.&nbsp; As I've explained <a href="http://econlog.econlib.org/archives/2010/09/for_ye_have_sig.html">before</a>:</p><blockquote><p>Many economists assume that market forces will somehow figure out a way 
to make signaling costs disappear.&nbsp; But as far as I can tell, they never
 explain why signaling costs would be easier to eliminate than any other
 costs.&nbsp; And on reflection, the truth is precisely the reverse: 
Signaling costs are especially <i>hard</i> to eliminate.&nbsp; Why?&nbsp; Because 
when you make signaling cheaper, agents' natural response is to signal 
more intensely or on another dimension.<br /><br />Let me illustrate my claim with a prediction: <i>The typical engagement ring will <b>always</b> cost several weeks' income.</i>&nbsp;
 If industry figures out how to cheaply synthesize gold and diamonds, 
we'll start making engagement rings out of something else - platinum and
 rubies, or ivory and T-rex teeth.&nbsp; Why?&nbsp; Because one major function of 
engagement rings is to signal commitment with an expensive gift!&nbsp; To 
separate the sheep from the goats, the signal has to be expensive enough
 to convince the goats to give up.</p></blockquote><p>Arnold again:<br /></p><blockquote><p>3.  The segregation model predicts the emergence of institutions like
 Boston University and George Washington University, which require much 
more money than brains to attend, and yet which have fairly high 
prestige, considering.</p></blockquote><p>I'm happy to admit that, in addition to their other functions, colleges are social clubs. &nbsp; I suspect that this social club function is especially important for religious colleges (think Brigham Young) and less-selective private colleges.&nbsp; But even if students in "clubby" colleges are implausibly apathetic about impressing future employers, belonging to any selective club almost automatically sends a signal.&nbsp; As long as (a) the average graduate of BU or GWU possesses special traits that employers value; and (b) employers can't costlessly measure these traits, a BU or GWU degree will pay off in the labor market.<br /></p><blockquote><p>4.  I think that if either the utilitarian model or the signaling 
model of higher education were correct, I would be sure to collect on 
any bet I make with Bryan about the demise of colleges.  If college as 
we know it manages to persist for another two decades, it will be thanks
 to the segregation model.</p></blockquote>Arnold's right about what he calls the "utilitarian model," better known as the human capital model.&nbsp; But contrary to Arnold, signaling models readily predict the persistence of costly, inefficient customs.&nbsp; Indeed, it's the persistence of costly, inefficient customs that inspire <a href="http://hanson.gmu.edu/showcare.pdf">much</a> of the signaling literature.<br /><br />Given Arnold's faith in educational innovation, I have to ask: If entrepreneurs can figure out cheaper ways to <i>teach </i>students, why can't they figure out cheaper ways to <i>segregate </i>students?&nbsp; Suppose Harvard is just a Vicky Club.&nbsp; On Arnold's account, there's no reason why an upstart Vicky Club couldn't come along and offer Harvard students Harvard-level segregation for a fraction of the cost.&nbsp; In the signaling model, of course, this wouldn't work: Quitting Harvard to join an "upstart Vicky Club" sends a godawful signal to employers and the world.<br /><br /> ]]>  (9 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/arnold_on_signa.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/arnold_on_signa.html</guid>

<category>Economics of Education</category>

<pubDate>Mon, 06 Feb 2012 01:50:14 -0500</pubDate>

</item>



<item>

<title>Naming the Puppy: Firing Aversion and the Labor Market, by Bryan Caplan</title>

<description><![CDATA[In fiction (and <a href="http://www.nbc.com/the-apprentice/">"reality" television</a>), firing workers almost seems fun.&nbsp; How many times has Mr. Burns gleefully hissed, "Fire than man, Smithers!"?&nbsp; In the real world, though, bosses dislike being the bearer of bad news.&nbsp; They feel guilty when they let someone go.&nbsp; So guilty, in fact, that some <a href="http://www.slate.com/articles/news_and_politics/explainer/2010/01/getting_the_ax_from_george_clooney.html">hire consultants to help them fire people</a>.&nbsp; To coin a behavioral econ phrase, most employers feel "firing aversion."<br /><br />How does firing aversion play out in the real world?&nbsp; For starters:<br /><br />1. <i>Firms often fail to hire workers who would be profitable in the short-run.</i>&nbsp; Why?&nbsp; Because in the medium- or long-run, conditions might change.&nbsp; Robots would respond by coldly discarding superfluous workers.&nbsp; But many human bosses won't.&nbsp; A human boss might feel guilty enough to continue paying the worker more than he's worth.&nbsp; Or he might fire the worker and feel like a jerk.&nbsp; Either way, it's not like returning a pair of pants to CostCo.&nbsp; Upshot: If a job candidate is a close call, a boss who foresees his own psychological reaction will say, "No thanks."<br /><br />2. <i><a href="http://econlog.econlib.org/archives/2011/11/the_magic_of_ed.html">Signaling</a> matters more.</i>&nbsp; Suppose bosses can learn workers' abilities in one of two ways: (a) Examine their educational credentials, or (b) give them a chance to prove themselves on the job.&nbsp; For robots, (b) might be an attractive option.&nbsp; For human bosses, however, (a) has more appeal.&nbsp; If you hire based on credentials, you never even have to <i>meet </i>most of the subpar candidates.&nbsp; If you hire based on trial-and-error, in contrast, you get to know a lot of people, then dash their dreams.&nbsp; Once again, a boss who foresees his own psychological reaction tailors his strategy accordingly.<br /><br />3. <i>Outsourcing looks better.</i>&nbsp; For most people, firing a visible human being hurts a lot more than firing a company.&nbsp; Firing a gardening <i>firm </i>doesn't feel so bad.&nbsp; Firing a <i>gardener</i> does.&nbsp; As a result, firms will outsource more than narrow profit-maximization recommends.<br /><br />Big picture: When you hire someone, you "<a href="http://www.urbandictionary.com/define.php?term=To%20name%20the%20puppy">name the puppy</a>."&nbsp; You accept them into your tribe.&nbsp; Yes, their initial status is relatively low.&nbsp; But if you're psychologically normal, the lowest member of your tribe still counts in your eyes.&nbsp; You'll exile a person from your tribe if they're a massive burden or a traitor.&nbsp; But if they're merely a moderate disappointment, you'll probably show mercy and lend them a hand.&nbsp; <br /><br />This may sound good.&nbsp; But it's a mixed bag at best.&nbsp; Yes, firing aversion makes life more secure for the employed.&nbsp; But it also makes it harder to find a job in the first place.&nbsp; From a social point of view, the labor market would work better if employers were as free of firing aversion as robots.<br /><br />P.S. Two requests for the comments:<br /><br />1. Can you name additional plausible real-world effects of firing aversion?<br /><br />2. Do you have any real-world examples to share (with names changed to protect the guilty)?<br />&nbsp;<br /> ]]>  (25 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/firing_aversion.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/firing_aversion.html</guid>

<category>Behavioral Economics and Rationality</category>

<pubDate>Sun, 05 Feb 2012 00:29:19 -0500</pubDate>

</item>



<item>

<title>My Two Favorite Graphs From Coming Apart, by Bryan Caplan</title>

<description><![CDATA[I have a predictably <a href="http://econlog.econlib.org/archives/2012/01/an_optimists_ta.html">optimistic take</a> on Charles Murray's <a href="http://www.amazon.com/Coming-Apart-State-America-1960-2010/dp/0307453421/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1328246642&amp;sr=1-1"><i>Coming Apart</i></a>.&nbsp; But these two graphs did indeed shock me.&nbsp; The first contrasts divorce rates for working class ("Fishtown") and professional ("Belmont") whites:<br /><span class="mt-enclosure mt-enclosure-image" style="display: inline;"><img alt="murray2.jpg" src="http://econlog.econlib.org/murray2.jpg" class="mt-image-none" style="" height="284" width="445" /></span><br /> <div><br />Notice: Among professionals, divorce plateaued over <i>three decades ago</i> at roughly 8%.&nbsp; Working class divorce rates started higher, rose more quickly, and never stopped rising.<br /><br />Murray's second shocking graph shows the fraction of working class and professional whites who say they're happily married:<br /><br /><span class="mt-enclosure mt-enclosure-image" style="display: inline;"><img alt="murray1.jpg" src="http://econlog.econlib.org/murray1.jpg" class="mt-image-none" style="" height="323" width="446" /></span>&nbsp; </div><div>Professionals have always been more likely to be happily married, and both groups saw a decline.&nbsp; But for professionals, happiness bottomed out in the mid-90, then rebounded.&nbsp; For the working class, again, there's been a linear decline, leaving only a quarter happily married.<br /><br />Still, as Kahneman reminds us, "Nothing in life is as important as you think it is when you're thinking about it."&nbsp; If you double-check in the GSS, you'll find that overall happiness has been virtually constant since the survey began in 1972.&nbsp; On a 3-point scale, happiness has decreased by .001 per year.&nbsp; Current trends could continue for a century before we'd see a tenth of a point decline in average happiness.&nbsp; So quit yer mopin'.<br /><br /></div>]]>  (5 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/my_two_favorite.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/my_two_favorite.html</guid>

<category>Family Economics</category>

<pubDate>Fri, 03 Feb 2012 00:23:01 -0500</pubDate>

</item>



<item>

<title>&quot;How Deserving Are the Poor?&quot;: My Opening Statement, by Bryan Caplan</title>

<description><![CDATA[Thanks to everyone who attended last night's debate, and especially to Karl Smith for being such a good sport.&nbsp; In the near future, I'll put up a webpage of debate resources, including full video.&nbsp; For now, here's my opening statement and <a href="http://econfaculty.gmu.edu/bcaplan/smithdebate.ppt">PowerPoints</a>.<br /><br /><!--[if gte mso 9]><xml>
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<p class="MsoNormal"><span style="font-family:Arial">When someone asks for your support,
it's natural to wonder, "Why do you need my support in the first place?"<span style="mso-spacerun:yes">&nbsp; </span>Some answers are better than others.<span style="mso-spacerun:yes">&nbsp; </span>If your friend asks you to pay for his lunch,
"I was just mugged" is a better reason than "I already spent my whole paycheck
on beer."<span style="mso-spacerun:yes">&nbsp; </span>If your girlfriend misses your
birthday, "My car and phone both broke down" is a better reason than "I
forgot."<span style="mso-spacerun:yes">&nbsp; </span>If a co-worker goes home early
and asks you to cover for him, "I have the flu" is a better reason than "I want
to play Skyrim."<span style="mso-spacerun:yes">&nbsp; </span></span></p>



<p class="MsoNormal"><span style="font-family:Arial">The key difference: If there
are <i style="mso-bidi-font-style:normal">reasonable</i> steps the person could
take - or could have taken - to avoid his problem.<span style="mso-spacerun:yes">&nbsp; </span>Your friend didn't have to spend all his
money on beer.<span style="mso-spacerun:yes">&nbsp; </span>Your girlfriend could
have put your birthday on her calendar.<span style="mso-spacerun:yes">&nbsp;
</span>Your co-worker could wait to play Skyrim.<span style="mso-spacerun:yes">&nbsp; </span>These steps may not be appealing, but they
are reasonable. There are grey areas, but you can usually tell which is which.<span style="mso-spacerun:yes">&nbsp; </span></span></p>



<p class="MsoNormal"><span style="font-family:Arial">I propose to use the same
standard to identify the "deserving" and "undeserving" poor.<span style="mso-spacerun:yes">&nbsp; </span>The <i style="mso-bidi-font-style:normal">deserving
poor</i> are those who can't take - and couldn't have taken - reasonable steps
to avoid poverty. The <i style="mso-bidi-font-style:normal">undeserving poor</i>
are those who can take - or could have taken - reasonable steps to avoid
poverty. <span style="mso-spacerun:yes">&nbsp;</span>Reasonable steps like: Work
full-time, even if the best job you can get isn't fun; spend your money on food
and shelter before you get cigarettes or cable t.v.; use contraception if you
can't afford a child.<span style="mso-spacerun:yes">&nbsp; </span>A simple test of
"reasonableness": If you wouldn't accept an excuse from a friend, you shouldn't
accept it from anyone.</span></p>



<p class="MsoNormal"><span style="font-family:Arial">If I sound harsh, notice: by
my standards, many of the poor are clearly deserving: low-skilled workers in
the Third World, children of poor or irresponsible parents, the severely handicapped.<span style="mso-spacerun:yes">&nbsp; </span>Still, on reflection, many people we think of
as "poor" turn out to be undeserving.<span style="mso-spacerun:yes">&nbsp; </span></span></p>



<p class="MsoNormal"><span style="font-family:Arial">Let's start with healthy
adults in the First World.<span style="mso-spacerun:yes">&nbsp; </span>Even the
least-skilled full-time jobs pay more than enough for adults to comfortably support
themselves.<span style="mso-spacerun:yes">&nbsp; </span><a href="http://www.bls.gov/oes/current/oes_nat.htm#00-0000">In the U.S.</a>, the
average income for janitors is about $25,000/year; the average for maids is
about $21,000.<span style="mso-spacerun:yes">&nbsp; </span>A household with one
janitor and one maid averages $46,000, enough to put them at the <a href="http://www.givingwhatwecan.org/resources/how-rich-you-are.php">96<sup>th</sup>
percentile</a> of the world income distribution - and <a href="http://www.census.gov/hhes/www/poverty/data/threshld/index.html">well
above</a> the U.S. poverty line.<span style="mso-spacerun:yes">&nbsp; </span>Even
Americans below the poverty line typically possess a <a href="http://www.heritage.org/research/reports/2011/09/understanding-poverty-in-the-united-states-surprising-facts-about-americas-poor">long
list of luxuries</a> that the Kings of France would have envied: 80% have air
conditioning, nearly three-quarters own a car, two-thirds have cable or
satellite t.v., one-third have a plasma or LCD t.v.<span style="mso-spacerun:yes">&nbsp; </span>My point isn't that all healthy adults in the
First World <i style="mso-bidi-font-style:normal">do</i> enjoy such living
standards, but that there are reasonable steps they can take - or could have
taken - to do so. </span></p>



<p class="MsoNormal"><span style="font-family:Arial">&nbsp;The same logic applies to
everyone who <i style="mso-bidi-font-style:normal">used to be</i> a healthy
adult in the First World.<span style="mso-spacerun:yes">&nbsp; </span>Were there
reasonable steps you could have taken earlier to avoid poverty?<span style="mso-spacerun:yes">&nbsp; </span>Sure.<span style="mso-spacerun:yes">&nbsp; </span>The
elderly could have saved more.<span style="mso-spacerun:yes">&nbsp; </span>The sick
could have bought insurance.<span style="mso-spacerun:yes">&nbsp; </span>It's
tempting to say, "When they were young and healthy, they didn't have the money!"<span style="mso-spacerun:yes">&nbsp; </span>But didn't they have the money for cable t.v.
and beer?</span></p>



<p class="MsoNormal"><span style="font-family:Arial">Some people think it's
pointless to talk about desert.<span style="mso-spacerun:yes">&nbsp; </span>I
disagree.<span style="mso-spacerun:yes">&nbsp; </span>If you're a libertarian who
opposes <i style="mso-bidi-font-style:normal">any</i> government spending on
the poor no matter what, you should still consider desert when you give to
charity.<span style="mso-spacerun:yes">&nbsp; </span>Starving Haitian children
really do deserve your help more than almost any American.<span style="mso-spacerun:yes">&nbsp; </span>If you have a more expansive view of the
proper role of government, you should still see a big difference between
forcing taxpayers to help starving kids, and forcing taxpayers to help
irresponsible adults.<span style="mso-spacerun:yes">&nbsp; </span>If you've ever
told a frustrating friend or relative, "It's your mess, you clean it up," you
should see the injustice in forcing taxpayers to support undeserving people
they don't even know.</span><br /></p><p class="MsoNormal"><!--[if gte mso 9]><xml>
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mso-fareast-font-family:&quot;Times New Roman&quot;;mso-ansi-language:EN-US;mso-fareast-language:
EN-US;mso-bidi-language:AR-SA">The most important lesson, though, is that First
World governments' priorities are upside-down.<span style="mso-spacerun:yes">&nbsp;
</span>The Third World contains hundreds of millions of deserving poor: desperate
people who would <i style="mso-bidi-font-style:normal">love </i>to work as a
janitor for $25,000 a year.<span style="mso-spacerun:yes">&nbsp; </span>If we owe
charity to anyone, we owe it to people who struggle to earn a dollar a
day.<span style="mso-spacerun:yes">&nbsp; </span>But when First World governments
hand out charity, the deserving poor in the Third World get next to
nothing.<span style="mso-spacerun:yes">&nbsp; </span>Foreign aid's about 1% of the
budget.<span style="mso-spacerun:yes">&nbsp; </span>Indeed, First World governments
actively prevent the world's deserving poor from helping themselves: They make
it <i style="mso-bidi-font-style:normal">illegal</i> for them to move to the First
World and accept a job from a willing employer.<span style="mso-spacerun:yes">&nbsp;&nbsp; </span>Even if we owe charity to no one, the least
we can do is stop kicking the world's deserving poor while they're down.</span></p><p></p>]]>  (21 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/how_deserving_a.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/how_deserving_a.html</guid>

<category>Economic Philosophy</category>

<pubDate>Thu, 02 Feb 2012 11:08:51 -0500</pubDate>

</item>



<item>

<title>What&apos;s So Special About Huemer&apos;s New Book?, by Bryan Caplan</title>

<description><![CDATA[In the comments, <a href="http://econlog.econlib.org/archives/2012/01/name_michael_hu.html#184690">Mark V. Anderson asks</a>:<br /><blockquote><p>I would like to know why you think this book is so extra-special.  I 
read the first chapter for which you provided the link.  It was well 
written, but I saw nothing there that I haven't read a hundred times.&nbsp; I am a consequentialist libertarian myself, and I find the radical 
approach very unconvincing, especially when one considers some of the 
potential consequences when one takes such an absolutist view against 
government. <br /></p></blockquote><p>I can see how you might think Huemer is merely hewing to a standard 
dogmatic natural rights position, which has indeed been done a hundred 
times.&nbsp; But he's not.&nbsp; He starts from much weaker premises, along the 
lines of "You shouldn't coerce other people without a good reason."&nbsp; And a prime example of&nbsp; "good reason," for Huemer, is "There would be very bad consequences of not coercing."&nbsp; He never claims that consequences don't matter.&nbsp; His reply to the consequentialist defense of government is:</p><p> (a) The defense only implies the rightness of government coercion when the consequences of not coercing are <i>in fact</i> very bad.</p><p>(b) Almost everyone sees that many, if not most, laws don't actually prevent very bad consequences.</p><p>(c) The good consequences of government coercion in the remaining, controversial cases are greatly overrated.</p><p>One big problem with libertarian consequentialism is that it focuses almost exclusively on (c).&nbsp; Huemer's insight is that you can get very far with (a) + (b) alone.</p><blockquote><p>And if I am not convinced, someone who is very skeptical of
 90% of the acts of government, all the more reason that your average 
statist (a majority of the citizenry) will reject these ideas out of 
hand.</p></blockquote><p>Empirically, you're right.&nbsp; Most people can't be persuaded.&nbsp; I admire Huemer's book because would change the minds of reasonable, fair-minded people on many moderate points - and at least pique their curiousity about his more radical positions. <br /></p><blockquote>

<p>I presume you have read the whole book.  Can you give us some more 
clues as to what Huemer says that is different from previous writers? <br /></p></blockquote><p>You presume correctly.&nbsp; What's great about the book is that he grants the plausibility of many seemingly statist intuitions, avoids absurd absolutism and obscurantism, and still reaches strong libertarian conclusions.&nbsp; I was repeatedly surprised by how far he gets without assuming anything controversial.<br /></p><blockquote><p> I
 have no interest in reading it if he doesn't have fresh ideas, even if 
it is very well written.</p></blockquote><p>Consequentialists will be tempted to dismiss it as yet another dogmatic natural rights book.&nbsp; Natural rights theorists will be tempted to dismiss it as confused consequentialism.&nbsp; But both dismissals are wrong.&nbsp; Huemer is doing something novel: Starting with pluralist common-sense morality and ending with radical libertarianism.<br /></p><blockquote><p>  And I don't see how it could have any affect 
on the population at large in that case.</p></blockquote><p>I doubt one philosopher can have much effect on the population at large no matter how fresh his ideas are.&nbsp; What a philosopher <i>can </i>do is bend over backwards to persuade reasonable people who don't already agree with him.&nbsp; Which is precisely what Huemer does.</p><p><u>Update:</u> In response to M.R. Orlowski, there's still no official publication date.&nbsp; I'm guessing early 2013.</p> ]]>  (20 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/whats_so_specia.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/whats_so_specia.html</guid>

<category>Books: Reviews and Suggested Readings</category>

<pubDate>Wed, 01 Feb 2012 11:53:18 -0500</pubDate>

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<title>A Freedman&apos;s Moral Intuition , by Bryan Caplan</title>

<description><![CDATA[In 1865, a former slave owner mailed a job offer to one of his former slaves.&nbsp; Here's the highlight of the <a href="http://digg.com/newsbar/story/amazing_letter_from_ex_slave_to_former_owner_in_1865_after_being_asked_to_return_to_work">freedman's response</a>:<br /><blockquote>Mandy says she would be afraid to go back without some proof that you 
were disposed to treat us justly and kindly; and we have concluded to 
test your sincerity by asking you to send us our wages for the time we 
served you. This will make us forget and forgive old scores, and rely on
 your justice and friendship in the future. I served you faithfully for 
thirty-two years, and Mandy twenty years. At twenty-five dollars a month
 for me, and two dollars a week for Mandy, our earnings would amount to 
eleven thousand six hundred and eighty dollars. Add to this the interest
 for the time our wages have been kept back, and deduct what you paid 
for our clothing, and three doctor's visits to me, and pulling a tooth 
for Mandy, and the balance will show what we are in justice entitled to.
 Please send the money by Adams's Express, in care of V. Winters, Esq., 
Dayton, Ohio. If you fail to pay us for faithful labors in the past, we 
can have little faith in your promises in the future. We trust the good 
Maker has opened your eyes to the wrongs which you and your fathers have
 done to me and my fathers, in making us toil for you for generations 
without recompense. Here I draw my wages every Saturday night; but in 
Tennessee there was never any pay-day for the negroes any more than for 
the horses and cows. Surely there will be a day of reckoning for those 
who defraud the laborer of his hire.<br /></blockquote>Too bad the last sentence turned out to be wrong.&nbsp; Life is not fair.<br /><br />]]>  (16 COMMENTS)</description>

<link>http://econlog.econlib.org/archives/2012/02/a_freedmans_mor.html</link>

<guid>http://econlog.econlib.org/archives/2012/02/a_freedmans_mor.html</guid>

<category>Economic Philosophy</category>

<pubDate>Wed, 01 Feb 2012 00:53:34 -0500</pubDate>

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