Home > Government, Obamacare, The Affordable Care Act > Government as a Unicorn

Government as a Unicorn

I recently saw an amusing and informative article by Michael Munger, an economist at Duke University (the article is here). The article concerns how one can explain the behavior of people who advocate more government while, at the same time, expressing disgust with many government policies, politicians, and so on.

Professor Munger has observed academic economists regularly express their disapproval of government actions and then, once they observe what they perceive to be poor policies, advocate more government to fix the perceived problems. This is logically inconsistent in the extreme and he puzzled over this (as I and other colleagues have done over the years) and finally realized that those who advocate more government, after expressing disapproval of government, expect a government that does not exist to solve problems they see. Thus Professor Munger sees his colleagues as wishing for a unicorn to exist. They want government to be what they imagine that it should be, not the one that we have.

For some recent evidence supporting this detachment from reality, consider a liberal economist who recently wrote that we should want the government to narrow the income distribution because this will improve the “supply-side” of the economy. How you ask? Well doing so, which I presume will follow an increase in tax rates paid by the rich however defined, will lead to some programs, programs unspecified by the liberal economist engaging in this advocacy, that will improve the quality of the workforce, thus raising productivity in the economy. So the same government that brought us healthcare.gov, the site so successful that people could not use it, will then turn around and successfully design programs to raise the human capital of the impoverished. To me, this “supply-side” story reveals a staggering ignorance of the reality of government.

I have been an academic economist for many years and I can say, based upon my own observations over the years, that Michael Munger has it right. Many academics are oblivious to the real world that surrounds them.

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A blog by John B. Taylor

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