Free Markets, Free People


“You can’t make the poor rich by making the rich poorer”

That’s a quote from attributed to Abraham Lincoln* as delivered by Richard Epstein in his discussion of economic inequality (a meme that is all the rage right now). Interestingly enough, this interview was conducted and broadcast by PBS (as tree hugging sister notes “I’m sure whoever’s idea it was has been sacked. Along with all the llama trainers”).

In any event, this is as good a retort to the #OWS nonsense as you’ll likely find. Enjoy (HT: Insty):

Watch Does U.S. Economic Inequality Have a Good Side? on PBS. See more from PBS NewsHour.

ADDED: Although Epstein doesn’t say it explicitly, essentially he describes “economic inequality” as a benign effect, rather than a malignant cause. Understanding the difference leads to understanding why allowing for the greatest number of opportunities works better at increasing everyone’s wealth instead of trying to equalize outcomes.

* Thanks to DWPittelli for pointing out this misattribution in the comments (“It was the Reverend William John Henry Boetcker (1873–1962) who wrote “you cannot help the poor by destroying the rich” and 9 other related aphorisms in 1916. A printing error in 1942 led to the confusion between some Lincoln quotes and these Boetcker quotes.”).

Kinsley restores my belief in the irony impaired left

Michael Kinsley goes on a bit of a tear about states subsidizing the film industry in an LA Times piece.  Kinsley is just flat upset that states are giving way subsidies to “millionaires”.  Frankly, I don’t think government should be subsidizing any industry.  But back to Kinsley:

Government, in order to work, must be a monopoly. The appeal of the movie industry to beleaguered state treasurers, in addition to its glamour, is its mobility. There are no huge factories. Regardless of where the movie is supposedly set, it can be shot almost anywhere. And it will employ locals and spend money.

But mobility giveth and mobility taketh away. Pit the states against one another and the subsidies will inevitably become more generous and less effective at the same time.

The same logic applies when the competition is foreign. True, we might tire of having to watch film after film often implausibly set in Vancouver. But in any attempt to outbid Canada for the privilege of hosting a movie shoot, even a successful effort will be self-defeating.

"Governors and legislatures should call ‘cut!’ on cynical efforts to kill forward-looking incentive programs for film and TV production, in New Mexico and in all other states," Richardson says.

"Cynical" is an odd word to describe people (and there aren’t many) who want deeply indebted state governments to stop forgoing billions in tax revenue in the futile effort to entice the movie business to make its next western in Erie, Penn., or wherever.

Whatever indeed.  I don’t disagree.  For once I can give Kinsley kudos. 

Well, almost.   In the same article he says, talking about Bill Richardson, former governor of New Mexico (and the “Richardson” quoted above):

Richardson might well be a candidate for one of the "respected elder statesman" seats that come open every generation (sort of an American version of the British House of Lords, only chosen by the media instead of the government), bringing with them memberships of prestigious commissions, offers of ambassadorships, opportunities to express concern on "Charlie Rose" or the PBS "NewsHour" shows (if those institutions manage to survive the current Republican onslaught) and so on.

Yes, you caught it.  He’s talking about the subsidy the Federal government gives the Corporation for Public Broadcasting, a multi-million dollar corporation that helps fund PBS, another multi-million dollar tax subsidized entity.

Irony – still a mystery to much of the left.

Next Kinsley will be urging us to buy a book on how to save the trees.