Tag Archives: Redistribution of Wealth

How childhood experiences shape our view of economics

Last time, we looked at how childhood experiences influence our views of religion. This time, I want to go over an article from the Cato Institute from the famous Harvard philosopher Robert Nozick. This article will give you insights into why leftist academics are against capitalism, and what specifically causes them to have that belief.

Here’s a blurb about Nozick:

Robert Nozick is Arthur Kingsley Porter Professor of Philosophy at Harvard University and the author of Anarchy, State, and Utopia and other books. This article is excerpted from his essay “Why Do Intellectuals Oppose Capitalism?” which originally appeared in The Future of Private Enterprise, ed. Craig Aronoff et al. (Georgia State University Business Press, 1986) and is reprinted in Robert Nozick, Socratic Puzzles (Harvard University Press, 1997).

Nozick’s thesis is that the school environment encourages “wordsmith intellectuals” to be hostile to free market capitalism and prefer centralized systems.

First, let’s see what a wordsmith intellectual is:

By intellectuals, I do not mean all people of intelligence or of a certain level of education, but those who, in their vocation, deal with ideas as expressed in words, shaping the word flow others receive. These wordsmiths include poets, novelists, literary critics, newspaper and magazine journalists, and many professors. It does not include those who primarily produce and transmit quantitatively or mathematically formulated information (the numbersmiths) or those working in visual media, painters, sculptors, cameramen. Unlike the wordsmiths, people in these occupations do not disproportionately oppose capitalism. The wordsmiths are concentrated in certain occupational sites: academia, the media, government bureaucracy.

Nozick’s argument is that wordsmiths oppose capitalism because the free market doesn’t provide them with the rewards and adulation from authority figures that they received in their school years.

He writes:

Schools became the major institution outside of the family to shape the attitudes of young people, and almost all those who later became intellectuals went through schools. There they were successful. They were judged against others and deemed superior. They were praised and rewarded, the teacher’s favorites. How could they fail to see themselves as superior? Daily, they experienced differences in facility with ideas, in quick-wittedness. The schools told them, and showed them, they were better.

The schools, too, exhibited and thereby taught the principle of reward in accordance with (intellectual) merit. To the intellectually meritorious went the praise, the teacher’s smiles, and the highest grades. In the currency the schools had to offer, the smartest constituted the upper class. Though not part of the official curricula, in the schools the intellectuals learned the lessons of their own greater value in comparison with the others, and of how this greater value entitled them to greater rewards.

But what happens when these pampered wordsmith intellectuals hit the job market?

The wider market society, however, taught a different lesson. There the greatest rewards did not go to the verbally brightest. There the intellectual skills were not most highly valued. Schooled in the lesson that they were most valuable, the most deserving of reward, the most entitled to reward, how could the intellectuals, by and large, fail to resent the capitalist society which deprived them of the just deserts to which their superiority “entitled” them? Is it surprising that what the schooled intellectuals felt for capitalist society was a deep and sullen animus that, although clothed with various publicly appropriate reasons, continued even when those particular reasons were shown to be inadequate?

So, what economic system do wordsmith intellectuals advocate for instead of capitalism?

The intellectual wants the whole society to be a school writ large, to be like the environment where he did so well and was so well appreciated. By incorporating standards of reward that are different from the wider society, the schools guarantee that some will experience downward mobility later. Those at the top of the school’s hierarchy will feel entitled to a top position, not only in that micro-society but in the wider one, a society whose system they will resent when it fails to treat them according to their self-prescribed wants and entitlements.

Intellectuals can’t make money degreez in Marxist Studies, Peace Studies, or <Insert_Victim_Group_Here> Studies. And yet, they feel entitled because of their classroom experiences. So, the answer is to confiscate the wealth of the productive entrepreneurs and redistribute them to the intellectuals.

But there are further unrelated points I must add to this article.

What makes people less religious the more educated they become?

OK, if you watch the debate between Peter Atkins and Bill Craig, or Lewis Wolpert and Bill Craig, etc. then it’s pretty clear that these “intellectuals” have not rejected God for intellectual reasons. On the contrary, they rejected God based on the reasoning of a 12 year old and never bothered to look for answers since they were 12.

The real reason that more educated people reject God is due to pride. Specifically, they do not want to be identified as believing the same spiritual things as the masses. Their great education makes them feel pressure to please their colleagues by embracing views that are different from the benighted masses.

So, it comes down to peer-pressure. They simply don’t want to be different from their colleagues. They want to be able to look down at the benighted masses.

What makes researchers support socialist dogma and pseudoscience?

Researchers are funded by government grants. Grants proposals have to get the attention of government bureaucrats. Bureaucrats are always looking for a crisis that they can sell to the public in order to increase the size of government and regulate the free market.

Therefore, researchers tend to embrace whatever the latest Chicken Little crisis is, be it global cooling, global warming, or unsafe consumer products, etc. Grant proposals that open up opportunities for government to control the free market will get the most funding.

What makes government-run schools and media support socialism?

Again, government-run schools and media receive funds based on the size of government. NPR, PBS and the whole public school system can never be objective about anything. They must always side with government and against individual liberty. They also oppose competition from private alternatives like Fox News and vouchers.

Cap and trade will raise electricity prices and increase unemployment

Representative Michele Bachmann
Representative Michele Bachmann

Michele Bachmann has a post on her blog about a new study by a Spanish economist regarding the cost of green job initiatives.

Excerpt:

A study directed by Dr. Gabriel Calzada, an economics professor at Juan Carlos University in Madrid, concluded that every “green job” created in Spain resulted in 2.2 other jobs being destroyed.

The study emphasized that only 10% of the “green jobs” created could be considered permanent – such as maintenance of renewable power systems. The remaining jobs consisted of temporary jobs in construction, fabrication and installation jobs; along with administrative positions, marketing, and engineering projects.

Spain has been providing subsidies to create green jobs, and this is viewed by some as a model for future US energy policy.

Bachmann continues:

“If U.S. subsidies to renewable producers achieve the same result — and President Obama has held Spain up as a model for how to subsidize renewables — the U.S. could lose 6.6 million to 11 million jobs while it creates three million largely temporary ‘green jobs.'”

Furthermore, Dr. Calzada stated that “the loss of jobs could be greater if you account for the amount of lost industry that moves out of the country due to higher energy prices.”

Thomas J. Pyle of the Institute for Energy Research adds:

“As this study makes clear, Spain has spent billions in taxpayer resources to subsidize renewable energy programs in an effort to jumpstart its ailing economy – and what they’ve gotten in return are fewer jobs, skyrocketing debt and some of the highest and most regressive energy prices in the developed world. Now, as U.S. policy-makers prepare to embark Americans upon a similar course, this report offers our first realistic glimpse into what we should expect in return for that unprecedented sacrifice of public resources and personal autonomy.”

The IER has a list of the key findings from the study in that post.

Ed Morrissey at Hot Air adds:

Why did the jobs disappear?  In part because of the higher capital confiscation of the government, and in part because the green policies pushed industry out of Spain. Actually, the study didn’t count jobs lost through “industrial relocation”, which in this case amounts to capital flight.  The largest stainless-steel producer in Spain directly linked its decision to move operations to South America to the higher energy costs imposed by the government.

In the US, we could see a massive flight, and not just in manufacturing.  High-tech industries that rely on cheap energy could be forced to find less expensive environments. Bloomberg’s economist notes that Microsoft and Google have already relocated their servers once to get cheaper energy.  The Internet is flexible enough to allow employers to go almost anywhere in the world to host their servers, and in this economy, there will be plenty of competition for them.

In a related post, Gateway Pundit notes that the cap and trade policies of the Democrats will also cause consumer electricity prices to soar.

Excerpt:

Democrats know that their cap and trade energy policies will devastate the economy.

…Cap and trade policies would likely cost American families $700 to $1,400 dollars per family per year according to the video above. The Department of Energy estimated GDP losses would be between $444 billion and $1.308 trillion over the 21-year period. Cap and trade also could cost the US 4 million jobs. In Missouri and the Midwest where energy is “cheap” it would cause electricity rates to double.

And, it would likely do nothing to help with the make-believe global warming junk science.

And GP also links to this video showing what we can expect from the Democrats on this issue:

Further study

I posted a list a while back of the expected increases in electricity prices, broken down by state, here. More about the impact on consumers from John Boehner is here.

More about the rise in unemployment we can expect from green jobs initiatives is here. Info about Obama’s tax hikes on energy producers is here. Information about possible carbon tariffs is here.

Information about the recent Cato statement of 700 scientists who dissent from man-made global warming is here.

Thomas Sowell explains why too much compassion is a bad thing

Here is something you can forward to all of your progressive friends! It clearly explains what’s wrong with too much moral permissiveness and compassion. When you subsidize certain decisions, you get more of those decisions, when you tax certain decisions, you get less of them.

Excerpt:

Since the average American never took out a mortgage loan as big as seven hundred grand– for the very good reason that he could not afford it– why should he be forced as a taxpayer to subsidize someone else who apparently couldn’t afford it either, but who got in over his head anyway?

Why should taxpayers who live in apartments, perhaps because they did not feel that they could afford to buy a house, be forced to subsidize other people who could not afford to buy a house, but who went ahead and bought one anyway?

And what about saving for a rainy day?

Who hasn’t been out of work at some time or other, or had an illness or accident that created unexpected expenses? The old and trite notion of “saving for a rainy day” is old and trite precisely because this has been a common experience for a very long time.

What is new is the current notion of indulging people who refused to save for a rainy day or to live within their means. In politics, it is called “compassion”– which comes in both the standard liberal version and “compassionate conservatism.”

The article concludes with this:

Even in an era of much-ballyhooed “change,” the government cannot eliminate sadness. What it can do is transfer that sadness from those who made risky and unwise decisions to the taxpayers who had nothing to do with their decisions.

Worse, the subsidizing of bad decisions destroys one of the most effective sources of better decisions– namely, paying the consequences of bad decisions.

I would just encourage you to try to communicate with your neighbors who may not have thought clearly about “the forgotten man”, the taxpayer who works hard, plays by the rules and then is stuck with the bill for the compassion of well-meaning socialists.

In one of my more popular posts, I explained how the compassion of socialist democrats got us into this financial crisis by forcing banks to make loans to people who couldn’t afford them.