American economist, social theorist, political philosopher and author
Thomas Sowell (born June 30, 1930) is an American economist and political commentator. He taught economics at Cornell University, the University of California, Los Angeles, and since 1980 at the Hoover Institution at Stanford University, where he is currently Senior Fellow.
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Talk about how various people have been “winners” in “the lottery of life” or have things that others don’t have just because they “happen to have money” is part of the delegitimizing of property as a prelude to seizing it.
Luck certainly plays a very large role in all our lives. But we need to be very clear about what that role is. Very few people just “happen” to have money. Typically, they have it because their fellow human beings have voluntarily paid them for providing some goods or services, which are valued more than the money that is paid for them. It is not a zero-sum game. Both sides are better off because of it — and the whole society is better off when such transactions take place freely among free and independent people.
Who can better decide the value of the goods and services that someone has produced than the people who actually use those goods and services — and pay for them with their own hard-earned money?
Luck may well have played a role in enabling some people to provide valuable goods and services. Others might have been able to do the same if they had been raised by better parents, taught in better schools or chanced upon someone who pointed them in the right direction. But you are not going to change that by confiscating the fruits of productivity. All you are likely to do is reduce that productivity and undermine the virtues and attitudes that create prosperity and make a free society possible.
If we wanted to be serious about evidence, we might compare where blacks stood a hundred years after the end of slavery with where they stood after 30 years of the liberal welfare state. In other words, we could compare hard evidence on “the legacy of slavery” with hard evidence on the legacy of liberals.
Despite the grand myth that black economic progress began or accelerated with the passage of the civil rights laws and “war on poverty” programs of the 1960s, the cold fact is that the poverty rate among blacks fell from 87 percent in 1940 to 47 percent by 1960. This was before any of those programs began.
Over the next 20 years, the poverty rate among blacks fell another 18 percentage points, compared to the 40-point drop in the previous 20 years. This was the continuation of a previous economic trend, at a slower rate of progress, not the economic grand deliverance proclaimed by liberals and self-serving black “leaders.”
Nearly a hundred years of the supposed “legacy of slavery” found most black children [78%] being raised in two-parent families in 1960. But thirty years after the liberal welfare state found the great majority of black children being raised by a single parent [66%]. Public housing projects in the first half of the 20th century were clean, safe places, where people slept outside on hot summer nights, when they were too poor to afford air conditioning. That was before admissions standards for public housing projects were lowered or abandoned, in the euphoria of liberal non-judgmental notions. And it was before the toxic message of victimhood was spread by liberals. We all know what hell holes public housing has become in our times. The same toxic message produced similar social results among lower-income people in England, despite an absence of a “legacy of slavery” there.
If we are to go by evidence of social retrogression, liberals have wreaked more havoc on blacks than the supposed “legacy of slavery” they talk about.
In the United States, government regulations are estimated to cost about $7,800 per employee in large businesses and about $10,600 per employee in small businesses.{662} Among other things, this suggests that the existence of numerous government regulations tends to give competitive advantages to big business, since there are apparently economies of scale in complying with these regulations.
Lamenting the vagaries of fate may leave us with a galling sense of helpless frustration, which many escape by transforming the tragedy of the human condition into the specific sins of specific societies. This turns an insoluble problem of cosmic justice into an apparently manageable issue of social justice. Since the sins of human beings are virtually inexhaustible, there is seldom a lack of examples of wrongdoing to which intergroup differences can be attributed, rightly or wrongly. Where the quest for injustice is over-riding, among the things it over-rides are logic and evidence.
A very distinct pattern has emerged repeatedly when policies favored by the anointed turn out to fail. This pattern typically has four stages: STAGE 1. THE “CRISIS”: Some situation exists, whose negative aspects the anointed propose to eliminate. Such a situation is routinely characterized as a “crisis,” even though all human situations have negative aspects, and even though evidence is seldom asked or given to show how the situation at hand is either uniquely bad or threatening to get worse. Sometimes the situation described as a “crisis” has in fact already been getting better for years. STAGE 2. THE “SOLUTION”: Policies to end the “crisis” are advocated by the anointed, who say that these policies will lead to beneficial result A. Critics say that these policies will lead to detrimental result Z. The anointed dismiss these latter claims as absurd and “simplistic,” if not dishonest. STAGE 3. THE RESULTS: The policies are instituted and lead to detrimental result Z. STAGE 4. THE RESPONSE: Those who attribute detrimental result Z to the policies instituted are dismissed as “simplistic” for ignoring the “complexities” involved, as “many factors” went into determining the outcome. The burden of proof is put on the critics to demonstrate to a certainty that these policies alone were the only possible cause of the worsening that occurred. No burden of proof whatever is put on those who had so confidently predicted improvement. Indeed, it is often asserted that things would have been even worse, were it not for the wonderful programs that mitigated the inevitable damage from other factors. Examples of this pattern are all too abundant. Three will be considered here. The first and most general involves the set of social welfare policies called “the war on poverty” during the administration of President Lyndon B. Johnson, but continuing under other labels since then. Next is the policy of introducing “sex education” into the public schools, as a means of reducing teenage p
Gun control zealots compare the United States and England to show that murder rates are lower where restrictions on ownership of firearms are more severe. But you could just as easily compare Switzerland and Germany, the Swiss having lower murder rates than the Germans, even though gun ownership is three times higher in Switzerland. Other countries with high rates of gun ownership and low murder rates include Israel, New Zealand, and Finland.
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External explanations of black-white differences — discrimination or poverty, for example — seem to many to be more amenable to public policy than internal explanations such as culture. Those with this point of view tend to resist cultural explanations but there is yet another reason why some resist understanding the counterproductive effects of an anachronistic culture: Alternative explanations of economic and social lags provide a more satisfying ability to blame all such lags on the sins of others, such as racism or discrimination. Equally important, such external explanations require no painful internal changes in the black population but leave all changes to whites, who are seen as needing to be harangued, threatened, or otherwise forced to change.
In short, prevailing explanations provide an alibi for those who lag — and an alibi is for many an enormously valuable asset that they are unlikely to give up easily.
One of the many signs of verbal virtuosity among intellectuals is the repackaging of words to mean things that are not only different from, but sometimes the direct opposite of, their original meanings. 'Freedom' and 'power' are among the most common of these repackaged words. The basic concept of freedom as not being subjected to other people's restrictions, and of power as the ability to restrict other people's options have both been stood on their heads in some of the repackaging of these words by intellectuals discussing economic issues. Thus business enterprises who expand the public's options, either quantitatively (through lower prices) or qualitatively (through better products) are often spoken of as 'controlling' the market, whenever this results in a high percentage of consumers choosing to purchase their particular products rather than the competing products of other enterprises.
In other words, when consumers decide that particular brands of products are either cheaper or better than competing brands of those products, third parties take it upon themselves to depict those who produced these particular brands as having exercised 'power' or 'control.' If, at a given time, three-quarters of the consumers prefer to buy the Acme brand of widgets to any other brand, then Acme Inc. will be said to 'control' three-quarters of the market, even though consumers control 100 percent of the market, since they can switch to another brand of widgets tomorrow if someone else comes up with a better widget, or stop buying widgets altogether if a new product comes along that makes widgets obsolete.
....by saying that businesses have 'power' because they have 'control' of their markets, this verbal virtuosity opens the way to saying that government needs to exercise its 'countervailing power' (John Kenneth Galbraith's phrase) in order to protect the public. Despite the verbal parallels, government power is in fact power, since individuals do not have a free choice
Price controls almost invariably produce black markets, where prices are not only higher than the legally permitted prices, but also higher than they would be in a free market, since the legal risks must also be compensated. While small-scale black markets may function in secrecy, large-scale black markets usually require bribes to officials to look the other way.