Friday, August 29, 2025
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Email Whitelisting
Best Retirement Wishes
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
  • Top News
No Result
View All Result
Best Retirement Wishes
Home Stock

Arbitrary Redistribution

by
June 20, 2023
in Stock
0
0
SHARES
7
VIEWS
Share on FacebookShare on Twitter

Jeffrey Miron

This article appeared on Substack on June 19, 2023

Related posts

Friday Feature: Empigo Academy

Friday Feature: Empigo Academy

August 29, 2025
Chinese Gaming Regulations Largely Failed to Achieve Their Goals

Chinese Gaming Regulations Largely Failed to Achieve Their Goals

August 29, 2025

A common view attributes economic inequality to the evils of markets—greed, corruption, family connections, luck, and so on—rather than to differences in economic productivity.

Some wealth is no doubt “ill‐​gotten,” or at least not directly related to one’s own contribution to the economic pie.

Yet many differences in economic success result from government interventions that create winners and losers, and in arbitrary or even perverse ways.

Government licenses to become a lawyer, doctor, hair braider, plumber, or other professional raise the income of those who obtain these licenses, regardless of whether more talented.

Zoning regulation protects the wealth of those lucky enough to have bought land before such restrictions existed.

Much regulation, of all kinds, imposes substantial fixed costs. Larger firms more easily absorb these, while small firms face a greater barrier to entry. Regulation also creates the opportunity for less principled businesses to game the system, implying honest firms lose out.

When governments build schools, roads, hospitals, office buildings, military equipment, and other infrastructure, they contract out with private firms. Ideally government chooses the most efficient firm, but in practice cronyism and corruption play substantial roles.

Restrictive immigration policies prevent people in poor countries from earning substantially higher wages.

Medicare reimbursement rules reward less scrupulous health care providers, who manipulate billing codes to maximize their revenues.

Taxpayer‐​funded universities transfer wealth to families with more college‐​bound children.

Government protections for unions raise member wages but cause others to be underemployed. Minimum wage laws have similar effects.

Rent controls discourage construction of new housing, raising costs for those who fail to secure controlled apartments.

The corporate income tax penalizes not just shareholders but customers and employees, who are often less well off.

Progressive or complicated tax codes create lucrative incomes for the lawyers and accountants who help individuals and businesses avoid or evade these features.

I could go on, but you get the point!

The fact that government causes these arbitrary redistributions is not, by itself, reason to avoid all intervention. If a policy generates large benefits, any resulting mal‐​distribution might be a necessary evil.

In a few cases, moreover, redistribution is the flip side of a potentially beneficial effect. Patents and copyright create monopoly profits that incentivize innovative or creative activity, perhaps benefitting society overall.

Nevertheless, policy evaluations should recognize the scope for arbitrary redistribution as one negative side effect of interfering with free markets.

Likewise, any discussion of redistribution should recognize that government, rather than the free market, is often the bigger offender.

Previous Post

Improving Youth Online Safety While Preserving Consumer Choice and the Benefits of Technology

Next Post

5 Budget Process Ideas in the Republican Study Committee Plan

Next Post

5 Budget Process Ideas in the Republican Study Committee Plan

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

RECOMMENDED NEWS

Running the LA marathon is exhausting…

Running the LA marathon is exhausting…

2 years ago
Navigating the Ma(i)ze of Mexico’s GM Corn Ban

Navigating the Ma(i)ze of Mexico’s GM Corn Ban

2 years ago
Should We Embrace the Stateless Roman Political Thought?

Should We Embrace the Stateless Roman Political Thought?

2 years ago

Friday Feature: Compass Educators and Ellemercito Academy

2 years ago

BROWSE BY CATEGORIES

  • Economy
  • Editor's Pick
  • Stock
  • Top News
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

POPULAR NEWS

  • How not to answer the question “Why are carbon taxes unpopular with policymakers and politicians?”

    0 shares
    Share 0 Tweet 0
  • How Can We Restore Freedom and Sound Money in the US and the UK? Some Ideas

    0 shares
    Share 0 Tweet 0
  • The New Deal and Recovery, Part 28: A New Deal for Housing

    0 shares
    Share 0 Tweet 0
  • You Can’t Depend on the State to Maintain Public Order

    0 shares
    Share 0 Tweet 0
  • Remember the Alamo! Moses Rose’s Last Stand

    0 shares
    Share 0 Tweet 0

Disclaimer

BestRetirementWishes.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Recent News

  • Inflation and Food Debasement
  • Friday Feature: Empigo Academy
  • Chinese Gaming Regulations Largely Failed to Achieve Their Goals

Category

  • Economy
  • Editor's Pick
  • Stock
  • Top News

Recent News

Inflation and Food Debasement

August 29, 2025
Friday Feature: Empigo Academy

Friday Feature: Empigo Academy

August 29, 2025
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Email Whitelisting

© 2021 BestRetirementWishes. All Rights Reserved.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home 1
  • Privacy Policy
  • suspicious-engagement
  • Terms & Conditions
  • Thank You

© 2021 BestRetirementWishes. All Rights Reserved.