Tuesday, January 4, 2011

Reducing Social Divisions and Inequality: When Liberal Pundits Fight

Do you increase social cohesion and reduce social inequality by reducing income inequality through taxation,  or by limiting cultural and racial diversity, for example, by limiting immigration?  Follow the Links  to read about some in-fighting among liberals* on this issue.  Starting off, conservative/libertarian Tom Maguire points out that the same data can lead to different conclusions if you haven't accounted for all variables:
Yesterday Nick Kristof delivered a daft column invoking income inequality as a proxy for social inequality and arguing that inequality is stressful and bad. . .

The obvious conclusion, based on the examples presented by Kristof, is that racial diversity creates undesirable social stress. An obvious public policy implication is that immigration should be discouraged. Believe it or not, Kristof did not reach those conclusions, since they don't fit his narrative. Instead, he rode the data to his preconceived destination, which is that we need to tax the rich and spread the wealth. Yeah, yeah - if you aren't going to let the data tell its story, why send it on stage? Or, if the data leads to unacceptable conclusions, maybe the premises are wrong (e.g., maybe social stress is bad but it is a necessary consequence of achieving other goods.)

Well. As if on cue, the Times has a front-pager telling us how they reduce income inequality and maintain social cohesion in laudable Japan - they kick out foreigners, thereby propping up wages. . .

OK, it looks like national suicide to me and it could never work in America (nor should it be attempted at this level, although we need stricter border control and workplace enforcement), but this is a country Nick Kristof is holding up as our goal.
Mickey Kaus notes differences between the famous New York Times columnist Paul Krugman and less famous  liberal (and libertarian/liberal) commentators on the issue of immigration. Some of whom seem to have a tendency toward name-calling.

Somewhat-related Graphs: Median income vs. incomes for the top 1% in America over time.  Update:  Tom Maguire has no mercy.

* Well, Mickey Kaus is more moderate than the rest - with some libertarian leanings. I sure wish his Democratic primary challenge to Barbara Boxer had been more successful. But he made some good points with very little money.

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