Showing posts with label Occupy Wall Street. Show all posts
Showing posts with label Occupy Wall Street. Show all posts

Wednesday, April 4, 2012

Reflections on Inequality

This short essay by Robert A. Levy, chairman of the Cato Institute, nicely captures in a very few words key libertarian counter-points to the Occupy Wall Street stance on inequality.



Israeli president Shimon Peres reminds us: "By and large, those in the world who placed freedom above equality have done better by equality than those who placed equality above freedom have done by freedom." That observation, apparently lost on the Occupy Wall Street crowd, has a moral component as well: It is more just to reward effort, even if it cannot be proven to benefit the least affluent, than it is to reward the least affluent, even if they exert little effort to improve their status. Moral superiority does not entail punishing the industrious wealthy to sustain the indolent poor.

Further, the top 1 percent of income earners — persons earning more than $343,000 in 2009 — paid 38 percent of income taxes. And that doesn't reflect the nondeductibility of capital losses, the tax on illusory gains due to inflation, and the double tax paid indirectly by shareholders on corporate profits before they're distributed or impounded in stock prices. By contrast, according to the Committee on Joint Taxation, more than half of American households paid zero income taxes. Those numbers are astonishing. Even persons who embrace progressive taxation are hard-pressed to argue that the tax code is insufficiently discriminatory. How far must progressivity extend to satisfy the left's notion of fairness?
 Read the whole thing. It’s only seven paragraphs long!


Friday, December 30, 2011

The Moral Foundations of Occupy Wall Street - Jonathan Haidt, Reason Magazine

Jonathan Haidt, author of one of my favorite books, The Happiness Hypothesis, applies his theory of moral foundations to the Occupy Wall Street movement. I’ve provided some quotes below. I like his approach.

My colleagues and I found that political liberals tend to rely primarily on the moral foundation of care/harm, followed by fairness/cheating and liberty/oppression. They are very concerned about victims of oppression, but they rarely make moral appeals based on loyalty/betrayal, authority/subversion, or sanctity/degradation. Social conservatives, in contrast, use all six foundations. They are less concerned than liberals about harm but much more concerned about the moral foundations that bind groups and nations together, i.e., loyalty (patriotism), authority (law and order, traditional families), and sanctity (the Bible, God, the flag as a sacred object). Libertarians, true to their name, value liberty more than anyone else, and they value it far more than any other foundation. (You can read our complete research findings at www.MoralFoundations.org.)

So what is the mix of moral foundations at Occupy Wall Street (OWS)? In my visit to Zuccotti Park, it was clear that the main moral foundation of OWS is fairness, followed by care and liberty. Loyalty, authority, and sanctity, by contrast, were very little in evidence.

Many pundits have commented on the fact that OWS has no specific list of demands, but the protesters’ basic message is quite clear: rein in the influence of big business, which has cheated and manipulated its way to great wealth (in part by buying legislation) while leaving a trail of oppressed and impoverished victims in its wake.

Will this message catch on with the rest of the country, much of which also values the loyalty, authority, and sanctity foundations? If OWS protesters engage in acts of violence, flag desecration, destruction of private property, or anything else that makes them seem subversive or anti-American, then I think most Americans will quickly reject them. Furthermore, if the protesters continue to focus on the gross inequality of outcomes in America, they will get nowhere. There is no equality foundation. Fairness means proportionality, and if Americans generally think that the rich got rich by working harder or by providing goods and services that were valued in a free market, they won’t support redistributionist policies. But if the OWS protesters can better articulate their case that “the 1 percent” got its riches by cheating, rather than by providing something valuable, or that “the 1 percent” abuses its power and oppresses “the 99 percent,” then Occupy Wall Street will find itself standing on a very secure pair of moral foundations.
I particularly like what he says in the last paragraph about fairness. While fairness is a valid concept on the social level in terms of how people treat each other in a non-legal context elevating fairness to trump rights and to be a governing political principle is a path fraught with peril. When the OWS folks talk about fairness they shift our focus away from the conditions necessary for each individual to live freely and to pursue happiness to the relationship between individuals. In other words OWS substitutes the concept of individual rights which has an objective basis (if formed properly) with fairness, which can mean whatever one wants it to be. I think is precisely their motive.

Wednesday, November 30, 2011

Thursday, November 10, 2011

A Failure of Capitalism? Really?

With all of the hoopla surrounding Occupy Wall Street and constant claims about how the economic mess we're shows how the free market doesn't work I like this short summary of an different point of view.

A Failure of Capitalism? Really?

Now comes the financial collapse of 2008, and it’s the free market to blame all over again. Forget that for a full century, the economic interventionists have promised to fix all the problems caused by capitalism. Ignore the fact that leftist professors have been claiming that FDR remedied these kinds of problems for all time. Now we are dealing with a new crisis and surely free enterprise is the culprit. With Bush saying he had to abandon free market principles to save them, with Greenspan saying he was too trustful of the market to regulate itself, surely now everyone is on the same page and the government measures necessary to fix the economy will easily be implemented. The bailouts of late 2008 were absolutely necessary to get us on the right track, we were told by all establishment voices.