Tag: Ronald Bailey

Categories
general freedom ideological culture media and media people too much government

Herd Immunity

Hillary Clinton and Barack Obama gave cautious support for the anti-​vaxxer cause a few years ago. No scandal.

But only now that Republican politicians Chris Christie and Rand Paul have talked about the risks of (as well as of parental rights and responsibility regarding) childhood vaccination has the issue of mandatory vaccination finally hit big.

Ronald Bailey offers a more modest proposal. “Vaccination is arguably the greatest public health triumph of the past century,” he  begins.  But he argues not for mandating vaccines, but for social pressure: “person-​to-​person shaming and shunning.”

That is one traditional (and less politically extreme) way to solve such problems.

But what is that problem, at base? Those who fear a negative personal effect from vaccination (and there are some, though the “autism” charge appears to be bogus) become “free riders,” as economists like to put it. They gain a de facto immunity without having to pay — either in money or in the small risk that vaccination does demonstrate.

This particular free rider benefit depends on the concept of “herd immunity.” That’s the conjectured level of protection for individuals who lack biological immunity by the overwhelming presence of vaccinated people in a population who are immune. (The disease can’t spread because it hits too many dead ends in healthy hosts.)

As has been often noted the last few days, though the anti-​vaxxer trend has mainly tended to “infect” (as a “meme”) urban populations of left-​leaning folks — epitomized by Hollywooders Jenny McCarthy and Jim Carrey — the new backlash against anti-​vaxxer rights has come strongest from the left-​leaning media.

The Republican “offenders” provide cover?

Apparently, those of the Democratic herd think they have immunity … to criticism.

This is Common Sense. I’m Paul Jacob.

Categories
general freedom ideological culture

Equality on the Brain

We’re told that “economic inequality” is on the rise.

Ronald Bailey, at Reason’s site, does a pretty good job of setting the record straight. The rich may be getting richer, but the poor aren’t getting poorer.

Further, “the rich” aren’t the same folks one year to the next. There is still income mobility in America. Some poor folks become super-​rich; a majority of super-​rich “1‑percent-​ers” will fall out of that 1‑percent category.  Over time, most folks move from one quintile to at least the next.

What prevents widespread understanding of this? Intellectual muddles. The difference between income and wealth often get fuzzed up, for example. Take two high-​income workers, earning the same pay: The one who saves will wind up with much more wealth than the other who spends it all. And rates of savings vary radically from person to person.

As does everything else.

Making things more complicated? Government policy. Bailouts are now an integral feature to aid some of the rich, to prevent their losses (we’re told) from spreading “financial contagion.”

Considering the moral hazard involved, I’d say “financial contagion” is endemic … on a whole different level.

And the same President Obama today decrying income inequality was yesterday bailing out rich folks.

A question for the inequality obsessed: Since the War on Poverty really set in, poverty rates have leveled off and even worsened (that is, the numbers of the officially impoverished have increased, despite increases in after-​tax/​after-​subsidy incomes) — could you be missing the moral hazard that any sort of bailout portends?

Real economic justice, as I suggested in my most recent weekend column, is just that, justice. Establishment of good rules, no special privileges.

This is Common Sense. I’m Paul Jacob.

 

Graph on this page shows income per household, courtesy Cafe Hayek. Caution: Households changed complexion radically in the 1960s-1980s.

Categories
tax policy

Two Forms of Subsidy

Ronald Bailey, online at Reason​.com, quotes a press release from a group of renewable energy outfits whining and moaning to keep their huge tax breaks. It’s all for the good of the country, they say.

But Bailey notes that when such tax credits go to businesses not favored by environmental activists and the New York Times, they get branded subsidies.

What is the difference?

A. Barton Hinkle, also working in the vineyards of Reason, clarified one such kerfuffle last year, showing that most of the allegedly shocking subsidies accruing to Big Oil were, in actual fact, general tax rules applicable to all sorts of companies. Hinkle readily concedes that maybe

these are dumb rules. Maybe they need changing. But in no sense can they be called subsidies — i.e., money taken from Smith and given to Jones. The failure to tax Exxon more does not increase your payment to the IRS by one red cent.

Hinkle concludes that if partisans, left or right, are going to treat tax breaks as subsidies, then they should do so across the board, without ideological cherry-picking.

And yes, there is an argument for calling all tax breaks “subsidies.” The lobbying for them looks about the same. They favor some businesses (or, more often, industries) over others. Politicians get the benefits from the special interests in the exact same way.

Perhaps we should define two broad categories of subsidy: Direct benefits and negated detriments. A tax sure is a detriment to the taxpayer. A tax credit or other break is a “negated detriment.” That is, an indirect benefit.

And those negative detriments sure can affect the bottom line.

This is Common Sense. I’m Paul Jacob.