pktechgirlbackup: (pktechgirl)
[personal profile] pktechgirlbackup
There are a lot of policy proposals, mostly but not exclusively progression, that I find troubling. I agree that the thing they are aimed at is negative, and that if their policy works as proposed it will weaken the effect, but I don't trust it. I either end up criticizing the proposals on libertarian grounds or just expressing a vague sense of unease, neither of which has the slightest effect on proponents.

Affirmative action used to fall into this category, but I now have some more articulate objections. Affirmative action is premised on the idea that the solution to black poverty is for white people to give them things. Not that the jobs are charity, but they're still given at the whim of white people, and ensure that the most rewards go to minorities who are best at assimilating into white middle class protestant culture. I would much rather have funded black entrepreneurs so they could be successful on their own terms. Or maybe just extended the protection of law so that white people didn't burn down their businesses *quite* so often. Or not used eminent domain to tear down black businesses to build housing projects, nominally aimed at helping the poor, and structured bidding so only white firms had a chance.*

Now I can move "fighting inequality" out of the inarticulate-unease/libertarian-sputtering category and into the real reasons category, thanks to Ezra Klein. He suggests that while inequality is bad, unemployment is worse, and we change priorities accordingly. I agree, but that's not impressive because I don't think inequality is bad. I also think most government efforts to increase employment are counterproductive and harmful. But Klein brings up the excellent point that there's at least one thing the government does that actively raises unemployment, and all they would have to do to lower unemployment is stop doing it.

They're not doing it for no reason, of course. They do it in the name of fighting inflation, which is generally considered to be good. But why? And have we ever measured how good low inflation is, relative to the costs of high unemployment? Unemployment makes people really fucking miserable. Moreover, inflation hurts net savers (i.e. wealthy people) and helps net debtors (i.e. poor people). And the closer we run to full employment, the less employers can get away with the soul crushing shit they pull on McJob holders (i.e. poor people). So prioritizing low inflation over high employment benefits the rich at the expense of the poor in every possible way.**

My conspiracy theory? The proposed solution to inequality is usually taxes. Taxes will always be worst for the people with the least flexibility. Flexibility increases with wealth. So in general, taxes will be worse for the rich than the truly wealthy. But there is no dodging inflation. That will hit the wealthy and there is very little they can do about it.***

Inflation also incentives people to invest in high-risk/high-reward ventures (which have a higher likelihood of creating jobs, although also a higher risk of royally fucking up the economy. Tto be fair, that risk will hit the rich harder than the wealthy) as opposed to letting it sit in bonds. It fights entrenched wealth by reducing the value of it, without the nasty side effects of an estate tax. It pushes everyone to keep creating rather than rest on accumulated wealth.

Let me note that as a net saver, I'm advocating against my own interests here. But however bad inflation may be, I think the moral thing right now is to tolerate a bit more of it in exchange for higher employment.



*Source: The Pruit-Igoe Complex

**Note: I'm assuming the alternative to low inflation is higher but *steady* inflation. Hyperinflation and unexpected spikes are still really bad for the economy as a whole.

***I'm not an accountant, I think that overseas investing might be an option, and that would have consequences for the US.
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