Dr. Williams is here to weigh in on the villain du jour – that crude, rude, evil and rich racist – Donald Sterling. This modern day slave driver owns a basketball team. He also has a big mouth, or rather, he has a trouble-making mistress who recorded his rantings about black people which made him a de facto La Boca Grande. But if you can’t trust your mistress, who can you trust?
As frequent readers of Gates of Vienna are aware, I’m an enthusiastic fan of economist, Walter Williams. I like him for the same reason I like The Grateful Dead or the former poet laureate, Billy Collins: the lightness of being that shines through all of their work shines also on us. The gifts they share with us are buoyant and blesséd, and so are we when we participate in their work…
Economic philosophy has been called “the dismal science”; if you get your ideas about economics from Paul Krugman, he of Yale and The New York Times, you’ll no doubt agree. PK has the existential flaw which runs through all of liberal ‘thinking’, i.e.,they feel rather than think and are immune to reality, thus the scare quotes. This immunity to Reason is a (sort of) tribute to liberals’ deeply held dogmas. Even as the arrow falls to earth they will continue to hold their hands over their eyes, denying themselves a world-shaking glimpse of the laws of gravity and clinging to their failed ideologies.
Overriding those dimwitted feelings is the regressive notion of scarcity. This “not-enough-to-go-around” idea has been used to harness the negativity and fears of groups who have been taught to believe that unless they scratch and claw and wail “no fair!” they’ll be left powerless, out in the cold. The sad part of all that nonsense is its self-fulfilling nature. Even sadder is the reality that these economic illiterates vote in the very people who will make their fears real even as they lie about making them safe from the Robber Barons and other villains spawned by that ol’ debbil, Capitalism.
Dr. Williams is the cure for such dogmatic drivel. He goes on his merry way, undeterred by the True Believers and still teaching economic reality after all these years. His classes at George Mason University continue to be over-subscribed.
Here is his “Books” page. Included are his own books and the works of others he thinks are basic to economic literacy. He also has online somewhere a brief course for beginners who are enthusiastic about Reason and Reality and are willing to drop those heavy doom and gloom chains they carry everywhere.
If you’ve read any of the drivel written about Donald Sterling and what fate he deserves, Dr. Williams’ antidote to silly talk extruding from pundits’ mouths at an alarming rate is below. Any emphases there are mine:
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:
Alert: Reality Quiz coming up!
- 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 —
[Note: Dr. Williams is citing Dr. Becker’s doctoral thesis from the early 1970s. It remains germane.]
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.
That, in a nutshell, is why statism is a loser’s game. It’s a corrupt con, always has been and always will be. Oh wait – there might be a case for the heavy hand of government: when Reality rescinds the Laws of Gravity, then maybe…
Uh oh. That column of Dr Williams arrived in our email today (I subscribe to his work). I forgot to go look for his URL until now: