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Redistribution of Opportunity that Makes Sense December 1, 2014

Posted by federalist in Human Markets, Social Politics.
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Rick Bookstaber points out a way of looking at equal opportunity “ex ante” that makes sense. The problem with progressive social engineering to date has been that it can’t help but reference, and thus try to manipulate, outcomes. (This is ignoring the much larger problem that progressives persist in seeking the coercive force of government to pursue their experiments. To be clear: government should never be involved in social engineering!)

Playing with policies to try to produce more equal outcomes is a futile endeavor: Human outcomes are subject to so many unobservable variables and so much chance that targeting outcomes will inevitably be suboptimal.

But the fact remains that the distribution of human capital — talent, genius, potential — in a free society does not correlate with the distribution of opportunity, which is largely determined by one’s birth endowment (i.e., the station and wealth of one’s parents).

After describing a theoretical framework for optimizing resources given the disparities of these two distributions, Bookstaber offers a sports example: Two children are vying for a tennis scholarship. One child would be called “underprivileged” but has immense potential. The other would be called “advantaged” but has mediocre talent. If our goal is to produce the best tennis players then the scholarship should go to the undeveloped but larger talent of the first child. However, our society is still too superficially meritocratic and so more often than not we see the suboptimal outcome of social resources being added to the second child, who in this example manages to beat the undeveloped but better player and win the scholarship.

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