Tag: Social Justice

  • The Fatal Flaw in ‘Social Justice

    The Fatal Flaw in ‘Social Justice

    The Fatal Flaw in ‘Social Justice’

    David Solway for pjmedia.com

    The Fatal Flaw in 'Social Justice'
    (Edward Smith/PA via AP)

    In his masterful study of how societies descend into totalitarian stasis and economic decrepitude, “The Path to Tyranny,” Michael Newton points out that what we call “rights” are inherently problematic and often misleading. “Politicians promise the right to high quality education, the right to free or affordable health care and housing, and many other so-called rights.” The political affectation of social compassion and legislative concern for the less privileged among us is a sure-fire vote-getter predicated on a deliberate or, as it may be, an unreflective policy aimed at social betterment. One way or another, our politicians have lost the plot, and the electorate, for the most part, is either deceived or befuddled. The problem, however, is clear: such promised rights are not genuine rights.

    The distinction that Newton proposes is as brilliant as it should have been obvious. Such faux entitlements are not rights but “benefits at the expense of others.” The distinction rides on the integrated concepts of fairness, property, and price. As Newton explains, “The rights to private property, free speech and freedom of religion are true rights because they have no cost.” They are intrinsic to the constitution of the democratic state. Whereas, “the ‘rights’ to education, housing, and health care cost the providers who must supply them for free.” Such “rights,” as he says, are “benefits,” gifts, donations — in effect, bestowals that flow from the supervisory redistribution of other people’s incomes via the mechanism of progressive taxation.

    Although such expenditures have nothing to do with “rights,” this does not mean that they are expendable or that a compassionate society should not do what it can, within reason, to care for its citizens. The religious concept of “tithing,” with its roots in the Hebrew Scriptures (see Deuteronomy 14:22 and Leviticus 27:30), is pertinent here. Tithes furnished a way to care for the needs of the less fortunate such as orphans and widows, as well as of the priestly class, or Levites, who did not own land or, as we would say today, the means of production. A caring and rational society will adopt and adapt the concept in order to provide for those in need while rewarding — or refusing to unduly penalize — its hardworking, self-reliant, risk-taking, entrepreneurial, and productive class of citizens.

    The calculus is delicate and elusive, but a reasonable compromise would need to be found between want and plenty. One way toward achieving this difficult balance is to recognize the difference between a right and an option and to cease confusing both the terminology and the concept. And to recognize, too, that the unfortunate are often the victims of their own lapses and failings, that a parasitical class does in fact exist, and that the self-proclaimed victim caste are not Levites.

    Thomas Sowell’s new book “Social Justice Fallacies” explores the subject in lucid detail, working out the notion of “reciprocal inequalities,” that is, inequalities between individuals and groups that are built-in by nature, heredity, ethos, and culture — for example, by racial aptitudes, by climate and geography (a thesis expounded by Jared Diamond), by the past in terms of “developed capabilities,” and by personal singletons. People excel or do not excel in particular domains and disciplines for reasons that may have nothing to do with discriminatory biases. Indeed, “Group equality in either incomes or capabilities is hard to find” in any given society or nation anywhere on the planet. In a society with equal opportunity and equal standards applied to all, “circumstantial disparities” are factors whose outcomes cannot be controlled or smoothed over to produce a level playing field.

    Difference is an indelible fact of life. Individuals and groups do well in different ways, which explains asymmetric contributions and activities associated with different races, nations, and cultures. These are not necessarily signs of social injustice or prejudice. There are more of X in one field, more of Y in another, where natural capacities and historical aptitudes prevail.

    Ironically, demographically underrepresented groups have throughout history outperformed dominant majorities — Sowell offers a veritable trove of such instances. “Majority domination” often turns out to be a myth and a catchword exploited by “social justice” crusaders. In any event, there is no country anywhere in the world, Sowell writes, “that has had the proportional representation which [social justice advocates] have made a criterion.” Favoring such presumably disparate classes through legislative fiat and wealth redistribution is not a “right” but a political choice that requires the forcible sequestration, chiefly through taxes, of other people’s property and assets, as well as of their rightful opportunities.

    Justice in the widest sense entails a tricky calibration between needs and resources, between those, as the old saw has it, who ride in the wagon and those who pull the wagon, between grievance and ambition, between unearned and earned dividends, between those who feel a sense of social entitlement and those who should be justly compensated for their labor, spirit, inventiveness, and energy. Such a calibration has nothing to do with affirmative action, fiscal redistribution, or historical reparations — in short, with “social justice.”

    There is no cost-free, conceptually entrenched, elemental entity called “minority rights.” Allowances, perquisites, insurances, and subsidies may be regarded as moral obligations but they are not “rights.” They are not constitutional provisions respecting the freedom of the individual within a lawful and well-ordered state in which property — intellectual, economic, physical — is regarded as the basis of a free society and therefore sacrosanct. The problem with “social justice,” as Sowell elaborates, is that it “has no defined meaning” but only “emotionally powerful connotations.” As a result, it can get away with fudging a crucial distinction, conflating a right with a gift, the principle of liberty with the practice of enforced equality. There is a thin line that divides generosity from robbery, gratuity from legalized extortion.

    “Social justice” is thus a practice that is easily — and indeed, almost always — abused, leading to misallocated resources, ideological priorities, and the eventual eclipse of both the principle of meritocracy and the sense of personal responsibility. It fosters a sentiment of betrayal in those whose legitimate rights have been displaced by bogus rights and whose contributions to the well-being and prosperity of society are not appreciated or even acknowledged. They bear the financial cost for assigned privileges which, as Newton argues, are for that reason not genuine rights. This is when the wagon begins to bog down.

    Ultimately, no viable society can survive “social justice.” It is a killer narrative. It is the road to nowhere good.

    Below is my response to those who believe they are entitled to the efforts of others.

  • Is Social Justice the…

    Is Social Justice the…

    Is Social Justice the Progressive Equivalent of Rent-Seeking Behavior?

    Jeffery Marshall for Mises.org

    The term “rent seeking” is a derogatory term that implies companies and people seek to take more than they earn. It hearkens to some Marxist ideology as well. However, especially when combined with regulatory capture and bureaucratic corruption, rent seeking is a valid concept. What happens when the shoe is on the other foot and people and organizations engage in rent seeking from a social justice perspective? Is it rent seeking or corruption for actions to secure social justice? Does the end justify the means?

    Investopedia defines rent seeking as follows: “Rent seeking (or rent-seeking) is an economic concept that occurs when an entity seeks to gain added wealth without any reciprocal contribution of productivity. Typically, it revolves around government-funded social services and social service programs.

    Political scientists and economists traditionally apply the term “rent seeking” to capitalists, especially the so-called robber barons from the Gilded Age. However, what the definition does not seem to consider is value creation. Value creation could be a subset of the “contribution of productivity,” but productivity does not mean value creation. We can be highly productive in activities that produce little value or may even destroy value. While the robber barons could be cruel and demanding by virtually any measure, they created the economy and infrastructure that saw the United States through two world wars. The robber barons also provided tremendous social value with the libraries, universities, and museums they funded along with their other charitable activities. These benefits do not excuse their predatory actions, but they created extensive value, which mitigates the amount of rent-seeking behavior.

    The term “rent seeking” and its definition hearken back to Karl Marx’s terminology and critique of capitalism. He was most decidedly against any form of rent seeking. Perhaps it is no accident that unions grew and perhaps reached their high point during the Gilded Age. After the Russian Revolution in 1917, the West, particularly the US, turned away from anything resembling communism. The term “rent seeking” is still a charged term and concept however.

    The definition of rent seeking says it is often a function of government programs. I have covered this in several blog entries (“Defending the Republic: Scenario 1 Regulatory Capture,” “Defending the Republic: Scenario 2 Policy Domination,” “Regulatory Capture and other Bureaucratic Problems,” “DIE Hydra,” and “Critical Thinking and Policy Development and Analysis”). Organizations use regulatory capture to engage in rent seeking from government programs.

    A good example of rent seeking among government programs is a homeowner that builds a house in an area with frequent floods, fires, or hurricanes, yet he does not purchase the appropriate hazard insurance. When disaster strikes, the homeowner expects, if not demands, the Federal Emergency Management Agency (FEMA) to pay the costs to rebuild. FEMA does—why? Is there some deep regulatory capture going on by the home lenders and insurance companies? More study is required, but I suspect so.

    Let us now look at a (hopefully) fictitious scenario. Suppose someone you have never met before walks into your house, opens the refrigerator, and starts helping themself to food. Then, they take your ATM card and withdraw half of your bank account. Next, they sleep in your bed. What would you do? Is this theft? Would you offer them the rest of your bank account, food, and shelter, or would you call the police?

    In a sense, this is rent-seeking behavior. The person is taking what belongs to you and offers nothing in return. The person does not offer any compensation or services to pay for the food, money, and use of your home.

    Now, let us look at a few examples we see in the US today.

    • There are demands for the rich to pay “their fair share” of taxes. What is a “fair share”? Does it matter? The National Taxpayer Union wrote,

    New data from the IRS find that the top 25 percent of earners paid nearly 89 percent of all income taxes in 2020. This is the highest share of income taxes paid seen in the tax data available going back to 1980. Lower income earners carry little of the overall income tax burden, with the bottom 50 percent of earners owing 2.3 percent of the national share.

    Is the bottom 50 percent engaging in rent seeking? Do the rich owe more taxes?

    • Illegal aliens come into the US and immediately receive food, shelter, and money. They have done nothing to earn it and almost certainly will not pay it back. In addition, schools get crowded and must pay to educate children that are not prepared for their grade level and do not speak English.
    • Standards are lowered to allow people who are otherwise not qualified to get positions or attend programs. People who are qualified may not compete for the positions or a place in the programs.
    • City attorneys do not prosecute crimes. Some say the individuals are entitled to steal to make up for past discrimination.
    • The Biden administration wants to forgive student loans. Students may choose degrees that have little or no relevance to jobs. Then, they cannot get jobs and cannot pay their student loans. Meanwhile, people who chose degrees that are relevant to the job market and can pay their loans, as well as people who pay taxes but never went to college, are required to pay for the student loan forgiveness program.
    • Likewise, the administration wants people who do not need to pay large mortgage origination fees to pay higher fees so people that do not qualify for lower fees can pay lower fees.

    These examples all meet the definition of rent-seeking behavior. They also have a corrosive impact on society. They lower standards, reduce personal responsibility, and penalize a large segment of society. However, corrosive acid can be used in valuable applications, such as acid etching.

    We still see the value the robber barons created from both their commercial efforts and their charitable/social efforts. It remains to be seen whether we will see value from the social justice movement. One thing is for sure, the corrosive effects of rent seeking eat away at the rule of law, which is a foundation of American prosperity.