Showing posts with label Walter Williams. Show all posts
Showing posts with label Walter Williams. Show all posts

Thursday, February 12, 2015

Laws That Rig the Economic Game

By Walter E. Williams

Oxfam reports that the richest 1 percent of people in the world own 48 percent of the world's wealth. Many claim that we should be alarmed by income inequality because it hampers upward mobility. Others argue that because income is distributed so unevenly, justice and fairness require income redistribution. Let's look at fairness and justice.

What constitutes fairness and justice has been debated for centuries. Widespread agreement has proved to be elusive at best. However, I think that an important part of an intelligent discussion about fairness and justice is the recognition that

Wednesday, October 29, 2014

Documentary on Economist Walter E. Williams

The documentary is now being aired on public television channels. Be sure to watch the preview which includes a segment on how Williams followed orders in the army.

The clip is here.

Friday, September 26, 2014

Are Sharks Sexist?

By Walter E. Williams

How many times have we heard laments such as "women are 50 percent of the population but only 5 percent of Fortune 500 CEOs" and, as the Justice Department recently found, "blacks are 54 percent of the population in Newark, New Jersey, but 85 percent of pedestrian stops and 79 percent of arrests"? If one believes that people should be represented socio-economically according to their numbers in the population, then statistical disparities represent injustices that demand government remedies. Before we jump to conclusions about what disparities mean and whether they are indicators of injustice, we might examine some other disparities to see what we can make of them.

According to a recent study conducted by Bond University in Australia, sharks are nine times as likely to attack and kill men than they are women. If sinister motivation is attributed for this disparity, as is done in the cases of sex and racial disparities, we can only conclude that sharks are sexist. Another sex disparity is despite the fact that men are 50 percent of the population and so are women, men are struck by lightning six times as often as women. I wonder what whoever is in charge of lightning has against men.

Another gross statistical disparity is despite the fact that Jews are less than 3 percent of the U.S. population and a mere 0.2 percent of the world's population, between 1901 and 2010, Jews were 35 percent of American and 22 percent of the world's Nobel Prize winners.

There are other disparities that we might acknowledge with an eye to corrective public policy. Asian-Americans routinely score the highest on the math portion of the SAT, whereas blacks score the lowest. The population statistics for South Dakota, Iowa, Maine, Montana and Vermont show that not even 1 percent of their populations is black. In states such as Georgia, Alabama and Mississippi, blacks are overrepresented in terms of their percentages in the general population. When this kind of "segregation" is found in schooling, the remedy is busing.

There are loads of international examples of ethnic disparities. During the 1960s, the Chinese minority in Malaysia, where Malays politically dominate, received more university degrees than the Malay majority — including 400 engineering degrees, compared with just four for the Malays. In Brazil's state of Sao Paulo, more than two-thirds of the potatoes and 90 percent of the tomatoes produced have been produced by people of Japanese ancestry.

Blacks are 13 percent of our population but 80 percent of professional basketball players and 65 percent of professional football players and among the highest-paid players in both sports. By stark contrast, blacks are only 2 percent of the NHL's professional ice hockey players. Basketball, football and ice hockey represent gross racial disparities and come nowhere close to "looking like America."

Even in terms of sports achievement, racial diversity is absent. In Major League Baseball, three out of the four hitters with the most career home runs are black. Since blacks entered the major leagues, of the eight times more than 100 bases have been stolen in a season, all were by blacks. In basketball, 50 of the 59 MVP awards have been won by black players.

If America's diversity worshippers see underrepresentation as "probative" of racial discrimination, what do they propose be done about overrepresentation? After all, overrepresentation and underrepresentation are simply different sides of injustice. If those in one race are overrepresented, it might mean they're taking away what rightfully belongs to another race. For example, is it possible that Jews are doing things that sabotage the chances of a potential Indian, Alaska Native or Mexican Nobel Prize winner? What about the disgraceful lack of diversity in professional basketball and ice hockey? There's not even geographical diversity in professional ice hockey; not a single player can boast of having been born and raised in Hawaii, Louisiana or Mississippi.

Courts, bureaucrats and the intellectual elite have consistently concluded that "gross" disparities are probative of a pattern and practice of discrimination. Given all of the differences among people, such a position is pure nonsense.

Walter E. Williams is a professor of economics at George Mason University and author of Race & Economics: How Much Can Be Blamed on Discrimination?

COPYRIGHT 2014 CREATORS.COM

Thursday, September 11, 2014

The Billions Spent on Gaining Access to Government Power

By Walter E. Williams

At a July fundraising event in Chicago, Mrs. Michelle Obama remarked, "So, yeah, there's too much money in politics. There's (sic) special interests that have too much influence." Sen. John McCain has been complaining for years that "there is too much money washing around political campaigns today." According to a 2012 Reuters poll, "Seventy-five percent of Americans feel there is too much money in politics." Let's think about money in politics, but first a few facts.

During the 2012 presidential campaign, Barack Obama raised a little over $1 billion, while Mitt Romney raised a little under $1 billion. Congressional candidates raised over $3.5 billion. In 2013, there were 12,341 registered lobbyists and $3.2 billion was spent on lobbying. During the years the Clintons have been in national politics, they've received at least $1.4 billion in contributions, according to Time magazine and the Center for Responsive Politics, making them "The First Family of Fundraising."

Here are my questions to you: Why do people and organizations cough up billions of dollars to line political coffers? One might answer that these groups and individuals are simply extraordinarily civic-minded Americans who have a deep and abiding interest in encouraging elected officials to live up to their oath of office to uphold and defend the U.S. Constitution. Another possible answer is that the people who spend these billions of dollars on politicians just love participating in the political process. If you believe either of these explanations for coughing up billions for politicians, you're probably a candidate for psychiatric attention, a straitjacket and a padded cell.

A far better explanation for the billions going to the campaign coffers of Washington politicians and lobbyists lies in the awesome government power and control over business, property, employment and other areas of our lives. Having such power, Washington politicians are in the position to grant special privileges, extend favors, change laws and do other things that if done by a private person would land him in jail. The major component of congressional power is the use of the IRS to take the earnings of one American to give to another.

The Dow Chemical Co. posted record lobbying expenditures last year, spending over $12 million. Joined by Alcoa, who spent $3.5 million, Dow supports the campaigns of congressmen who support natural gas export restrictions. Natural gas is a raw material for both companies. They fear natural gas prices would rise if export restrictions were lifted. Dow and other big users of natural gas make charitable contributions to environmentalists who seek to limit natural gas exploration. Natural gas export restrictions empower Russia's Vladimir Putin by making Europeans more dependent on Russian natural gas.

General Electric spends tens of millions of dollars lobbying. Part of their agenda was to help get Congress to outlaw incandescent light bulbs so that they could sell their more expensive compact fluorescent bulbs. It should come as no surprise that General Electric is a contributor to global warmers who helped convince Congress that incandescent bulbs were destroying the planet.

These are just two examples, among thousands, of the role of money in politics. Most concerns about money in politics tend to focus on relatively trivial matters such as the costs of running for office and interest-group influence on Congress and the White House. The bedrock problem is the awesome power of Congress. We Americans have asked, demanded and allowed congressmen to ignore their oaths of office and ignore the constitutional limitations imposed on them. The greater the congressional power to give handouts and grant favors and make special privileges the greater the value of being able to influence congressional decision-making. There's no better influence than money.

You say, "Williams, you've explained the problem. What's your solution?" Maybe we should think about enacting a law mandating that Congress cannot do for one American what it does not do for all Americans. For example, if Congress creates a monopoly for one American, it should create a monopoly for all Americans. Of course, a better solution is for Congress to obey our Constitution.

Walter E. Williams is a professor of economics at George Mason University and author of Race & Economics: How Much Can Be Blamed on Discrimination?

COPYRIGHT 2014 CREATORS.COM

Thursday, August 28, 2014

Blacks Must Confront Reality

By Walter E. Williams

Though racial discrimination exists, it is nowhere near the barrier it once was. The relevant question is: How much of what we see today can be explained by racial discrimination? This is an important question because if we conclude that racial discrimination is the major cause of black problems when it isn't, then effective solutions will be elusive forever. To begin to get a handle on the answer, let's pull up a few historical facts about black

Monday, July 14, 2014

Government Spending as a Morality Problem

By Walter E. Williams

During last year's budget negotiation meetings, President Barack Obama told House Speaker John Boehner, "We don't have a spending problem." When Boehner responded with "But, Mr. President, we have a very serious spending problem," Obama replied, "I'm getting tired of hearing you say that." In one sense, the president is right. What's being called a spending problem is really a symptom of an unappreciated deep-seated national moral rot. Let's examine it with a few questions.

Is it moral for Congress to forcibly use one person to serve the purposes of another? I believe that most Americans would pretend that to do so is offensive. Think about it this way. Suppose I saw a homeless, hungry elderly woman huddled on a heating grate in the dead of winter. To help the woman, I ask somebody for a $200 donation to help her out. If the person refuses, I then use intimidation, threats and coercion to take the person's money. I then purchase food and shelter for the needy woman. My question to you: Have I committed a crime? I hope that most people would answer yes. It's theft to take the property of one person to give to another.

Now comes the hard part. Would it be

Tuesday, June 24, 2014

In a Civics Survey, More Teenagers Were Able to name The Three Stooges Than the Three Branches of the Federal Government

By Walter E. Williams

Many view America's education as a failure, but in at least one important way, it's been a success — a success in dumbing down the nation so that we fall easy prey to charlatans, hustlers and quacks. You say, "Williams, that's insulting! Explain yourself." OK, let's start with

Sunday, May 18, 2014

Walter E. Williams: The State Against Blacks and the Minimum Wage

John Stossel is a very shaky "libertarian," but Walter Williams is pretty good. This is from a June 2011 Stossel show.


Wednesday, May 14, 2014

The Takeaway from the Sterling Affair

By Walter Williams

Donald Sterling, Los Angeles Clippers owner, was recorded by his mistress making some crude racist remarks. Since then, Sterling's racist comments have dominated the news, from talk radio to late-night shows. A few politicians have weighed in, with President Barack Obama congratulating the NBA for its sanctions against Sterling. There's little defense for Sterling, save his constitutional right to make racist remarks. But in a sea of self-righteous indignation, I think we're missing the most valuable lesson that we can learn from this affair — a lesson that's particularly important for black Americans.

Though Sterling might be a racist, there's an important "so what?" Does he act in ways commonly attributed to racists? Let's look at his employment policy. This season, Sterling paid his top three players salaries totaling over $46 million. His 20-person roster payroll totaled over $73 million. Here are a couple of questions for you: What race are the players whom racist Sterling paid the highest salaries? What race dominated the 20-man roster? The fact of business is that Sterling's highest-paid players are black, and 85 percent of Clippers players are black. Down through the years, hundreds of U.S. corporations have faced charges of racism, and many have been subjects of Equal Employment Opportunity Commission investigations, but none of them had such a favorable employment and wage policy as Sterling. How does one explain this? People with limited thinking ability might conclude that Sterling is a racist in his private life but a nice card-carrying liberal in his public life, manifested by his hiring so many blacks, not to mention paying Doc Rivers, the Clippers' black head coach, a healthy $7 million a year. The likelier explanation is given no attention at all.

Let's use a bit of simple economics to analyze the contrast in Sterling's private and public behavior. First, professional basketball is featured by considerable market competition. There's an open opportunity in the acquisition of basketball playing skills. Youngsters just buy a basketball and shoot hoops. There's open competition in joining both high-school and college teams. You just sign up for tryouts in high school and get noticed by college scouts. Then there's considerable competition among the NBA teams in the acquisition of the best college players. Minorities and less preferred people always do better when there are open markets instead of regulated markets.

Recently deceased Nobel Prize-winning economist Gary Becker pointed this phenomenon out some years ago in his path-breaking study "The Economics of Discrimination." Many people think that it takes government to eliminate racial discrimination, but economic theory predicts the opposite. Market competition imposes inescapable profit penalties on for-profit enterprises when they make employment decisions on any basis other than worker productivity. Professor Becker's study of racial discrimination upended the view that discriminatory bias benefits those who discriminate. He demonstrated that racial discrimination is less likely in the most competitive industries, which need to hire the best workers.

According to Forbes magazine, the Los Angeles Clippers would sell for $575 million. Ask yourself what the Clippers would sell for if Sterling were a racist in his public life and hired only white players. All the evidence suggests that would be a grossly losing proposition on at least two counts. Percentagewise, blacks more so than whites excel in basketball. That's not to say that it is impossible to recruit a team of first-rate, excellent white players. However, because there is a smaller number of top-tier white players relative to black players, the recruitment costs would be prohibitive. In other words, a team of excellent white players would be far costlier to field than a team of excellent black players. It's simply a matter of supply and demand.

The takeaway from the Sterling affair is that we should mount not a moral crusade but an economic liberty crusade. In other words, eliminate union restrictions, wage controls, occupational and business licensure, and other anti-free market restrictions. Make opportunity depend on one's productivity.

Walter E. Williams is a professor of economics at George Mason University and author of Race & Economics: How Much Can Be Blamed on Discrimination?

COPYRIGHT 2014 CREATORS.COM

Friday, April 18, 2014

Why Prison Segregation By Sex Should Be Eliminated

By Walter E. Williams

There are several race and sex issues that need addressing. Let's look at a few of them with an ear to these questions: Should we insist upon equal treatment of people by race and sex or tolerate differences in treatment? And just how equal are people by race and sex in the first place?

According to the National Institutes of Health, male infants 1 to 3 months old should be fed 472 to 572 calories per day, whereas their female counterparts should receive 438 to 521 calories per day. That's an official sex-based caloric 10 percent rip-off of baby females. In addition to this government-sanctioned war on women, one wonders whether the NIH has a race-based caloric rip-off where they recommend that black newborns receive fewer calories than white newborns.

Anyone who watches "Lockdown" on television will see gross racial segregation in

Wednesday, April 16, 2014

The Absurdity of the Obama Administration's Take on Student Discipline

By Walter Williams

George Leef, director of research for the North Carolina-based John William Pope Center for Higher Education Policy, authored a Forbes op-ed article titled "Obama Administration Takes Groupthink To Absurd Lengths." The subtitle is "School Discipline Rates Must Be 'Proportionate.'"

 Let's examine some of the absurdity of the Obama administration's take on student discipline.

Last January, the departments of Justice and Education published a "guidance" letter describing how schools can meet their obligations under federal law to administer student discipline without discriminating on the basis of race, color or national origin. Its underlying threat is that if federal bureaucrats learn of racial disproportionality in the punishments meted out for misbehavior, they will descend upon a school's administrators. If schools cannot justify differentials in rates of punishment by race or ethnic group, they will face the loss of federal funds and be forced to undertake costly diversity training.

The nation's educators can avoid sanctions by adopting a racial quota system for student discipline. So as Roger Clegg, president and general counsel of the Center for Equal Opportunity, predicts, "school officials will either start disciplining students who shouldn't be, or, more likely, will not discipline some students who ought to be." I can imagine school administrators reasoning this way: "Blacks are 20 percent of our student body, and 20 percent of suspensions this year have been of black students. In order to discipline another black student while maintaining our suspension quota, we will have to suspend some white students, whether they're guilty or not." Some administrators might see some injustice in that approach and simply

Wednesday, April 9, 2014

The Masses are Always Duped by Well-Intentioned Phrases

By Walter E. Williams

Engineering Evil is a documentary recently shown on the Military History channel. It's a story of Nazi Germany's murder campaign before and during World War II. According to some estimates, 16 million Jews and other people died at the hands of Nazis.

Though the Holocaust ranks high among the great human tragedies, most people never consider the most important question: How did

Monday, April 7, 2014

If a Person Stays Poor in the US, He is to Blame

By Walter E. Williams

There is no material poverty in the U.S. Here are a few facts about

Wednesday, April 2, 2014

It Is a Disgrace That the Average White 7th- or 8th-Grader Can Run Circles Around the Average Black 12th-Grader in Most Academic Subjects

By Walter E. Willimas

People in the media and academia are mostly leftists hellbent on growing government and controlling our lives. Black people, their politicians and civil rights organizations have become unwitting accomplices. The leftist pretense of

Saturday, March 29, 2014

Bizarre Arguments and Behavior

By Walter Williams

Some statements and arguments are so asinine that you'd have to be an academic or a leftist to take them seriously. Take the accusation that Republicans and conservatives are conducting a war on women. Does that mean they're waging war on their daughters, wives, mothers and other female members of their families? If so, do they abide by the Geneva Conventions' bans on torture, or do

Monday, December 26, 2011

Cell Phone Tyranny

By Walter Williams

National Transportation Safety Board Chairwoman Deborah Hersman has called for states to mandate a total ban on cellphone usage while driving. She has also encouraged electronics manufacturers – via recommendations to the CTIA-The Wireless Association and the Consumer Electronics Association – to develop features that "disable the functions of portable electronic devices within reach of the driver when a vehicle is in motion." That means she wants to be able to turn off your cellphone while you're driving


With very little evidence, the National Highway Transportation Safety Administration claims that there were some 3,092 roadway fatalities last year that involved distracted drivers. Americans ought to totally reject Hersman's agenda. It's the camel's nose into the tent. Down the road, we might expect mandates against talking to passengers while driving or putting on lipstick. They may even mandate the shutdown of drive-in restaurants as a contributory factor to driver distraction through eating while driving. You say, "Come on, Williams, you're paranoid. There are already laws against distracted driving, and it would never come to that!" Let's look at some other camels' noses into tents.


The fact of the matter is that the founders of our nation so feared the imposition of direct taxes, such as an income tax, that Article 1, Section 9 of the Constitution says, "No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken." It was not until the Abraham Lincoln administration that an income tax was imposed on Americans. Its stated purpose was to finance the war, but it took until 1872 for it to be repealed. During the Grover Cleveland administration, Congress enacted the Income Tax Act of 1894. The U.S. Supreme Court ruled it unconstitutional in 1895. It took the 16th Amendment (1913) to make permanent what the founders feared.


Another camel's nose in the tent lie that's threatening the economic collapse of our country is the Medicare lie.


Read the rest here.