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Tag Archives: Capitalism
Are Tea party conservatives more racist than liberal socialist Democrats?
Excerpt:
Typical opinion polls reported in the news average a response rate of under 20%, and some observers speculate that the real response rates for some prominent surveys may be as low as 1% of the people they contact. The General Social Survey, on the other hand, usually averages about a 70% response rate, the highest in the industry for a large-scale survey of the general U.S. public.
The most recent survey for which results were available when I began this project a few weeks ago was the 2008 survey. (For an updated analysis that includes more recent data, see the Author’s Update on the last page of this editorial.) It asked the question:
Some people think that the government in Washington is trying to do too many things that should be left to individuals and private businesses. Others disagree and think that the government should do even more to solve our country’s problems. Still others have opinions somewhere in between.
Where would you place yourself on this scale . . . ?
1— I strongly agree the government should do more
2—
3— I agree with both
4—
5— I strongly agree the government is doing too muchThus, those who agree that “the government is doing too much” would choose 4 or 5.
And what is the result of this survey?
Social scientists usually measure traditional racism against African Americans by looking at the survey responses of white Americans only. Among whites in the latest General Social Survey (2008), only 4.5% of small-government advocates express the view that “most Blacks/African-Americans have less in-born ability to learn,” compared to 12.3% of those who favor bigger government or take a middle position expressing this racist view (Figure 2). We social scientists sometimes like to express things in relative odds, especially for small percentages. Here the odds of small government whites not expressing racist views (21-to-1 odds) is three times higher than the odds of big-government whites not being racist (7-to-1 odds).
But advocates of smaller government can be found among Democrats and Independents as well as Republicans. What happens if we compare Republicans who think Washington is doing too much with those who think that government should do more or take a middle position? The relationships I’ve just described only get stronger.
Figure 3 shows that, among whites, Republican advocates of smaller government are even less racist (1.3% believing that blacks have less in-born ability) than the rest of the general public (11.3% expressing racist views). Thus, in 2008 Republicans who believe that the government in Washington does too much have 10 times higher odds of not expressing racist views on the in-born ability question than the rest of the population (79-to-1 odds v. 7.9-to-1 odds).
What about conservative Republicans more generally, not just the ones who want a smaller government? Surely they must be more racist. Actually not. In 2008, only 5.4% of white conservative Republicans expressed racist views on the in-born ability question, compared to 10.3% of the rest of the white population.
As Figure 4 shows, this same pattern holds for white Democrats compared to white Republicans: in 2008 12.3% of white Democrats in the U.S. believed that African Americans were born with less ability, compared to only 6.6% of white Republicans.
[…]Data from self-reports in the General Social Survey appear to support the notion that those who oppose income redistribution are somewhat more altruistic in their behavior than redistributionists (e.g., donating money, looking after pets or plants while friends are away), a conclusion also reached by the economist Arthur Brooks.
Click through for the charts and more analysis.
Why are Egyptians wealthier in America than they are in Egypt?
This is from Walter Williams, my second most favorite economist after Thomas Sowell.
Excerpt:
Why is it that Egyptians do well in the U.S. but not Egypt? We could make that same observation and pose that same question about Nigerians, Cambodians, Jamaicans and others of the underdeveloped world who migrate to the U.S. Until recently, we could make the same observation about Indians in India, and the Chinese citizens of the People’s Republic of China, but not Chinese citizens of Hong Kong and Taiwan.
[…]Much of Egypt’s economic problems are directly related to government interference and control that have resulted in weak institutions vital to prosperity. Hernando De Soto, president of Peru’s Institute for Liberty and Democracy (www.ild.org.pe), laid out much of Egypt’s problem in his Wall Street Journal article (Feb. 3, 2011), “Egypt’s Economic Apartheid.” More than 90 percent of Egyptians hold their property without legal title.
De Soto says, “Without clear legal title to their assets and real estate, in short, these entrepreneurs own what I have called ‘dead capital’ — property that cannot be leveraged as collateral for loans, to obtain investment capital, or as security for long-term contractual deals. And so the majority of these Egyptian enterprises remain small and relatively poor.”
Egypt’s legal private sector employs 6.8 million people and the public sector 5.9 million. More than 9 million people work in the extralegal sector, making Egypt’s underground economy the nation’s biggest employer.
Why are so many Egyptians in the underground economy? De Soto, who’s done extensive study of hampered entrepreneurship, gives a typical example: “To open a small bakery, our investigators found, would take more than 500 days. To get legal title to a vacant piece of land would take more than 10 years of dealing with red tape. To do business in Egypt, an aspiring poor entrepreneur would have to deal with 56 government agencies and repetitive government inspections.”
Poverty in Egypt, or anywhere else, is not very difficult to explain. There are three basic causes: People are poor because they cannot produce anything highly valued by others. They can produce things highly valued by others but are hampered or prevented from doing so. Or, they volunteer to be poor.
Some people use the excuse of colonialism to explain Third World poverty, but that’s nonsense. Some the world’s richest countries are former colonies: United States, Canada, Australia, New Zealand and Hong Kong. Some of the world’s poorest countries were never colonies, at least for not long, such as Ethiopia, Liberia, Tibet and Nepal. Pointing to the U.S., some say that it’s bountiful natural resources that explain wealth. Again nonsense. The two natural resources richest continents, Africa and South America, are home to the world’s most miserably poor. Hong Kong, Great Britain and Japan, poor in natural resources, are among the world’s richest nations.
What is necessary for wealth is a capitalist economy, that emphasizes the rule of law, private property, judicial restraint, limited government, etc. Egypt has none of those, and that’s why Egypt is poor. India and Chile used to be like Egypt, but then they revamped their societies to be more like America. Now India and Chile are more prosperous. Economics is not rocket science.
Capitalism creates wealth, and raises the standard of living of the poor and the wealthy. It doesn’t matter what rung of the social ladder someone is on – as long as they can keep what they earn, instead of having it redistributed by socialists, then they will work hard to create something of value to share with others. Poverty is caused by economic ignorance.
More Walter Williams stuff here, and more Thomas Sowell stuff here. These are the clearest-thinking economists operating today.
WINTERY KNIGHT 