Adversity is not a gift

Nov 29 JDN 2459183

For the last several weeks I’ve been participating in a program called “positive intelligence” (which they abbreviate “PQ” even though that doesn’t make sense); it’s basically a self-help program that is designed to improve mood and increase productivity. I am generally skeptical of such things, and I could tell from the start that it was being massively oversold, but I had the opportunity to participate for free, and I looked into the techniques involved and most of them seem to be borrowed from cognitive-behavioral therapy and mindfulness meditation.

Overall, I would say that the program has had small but genuine benefits for me. I think the most helpful part was actually getting the chance to participate in group sessions (via Zoom of course) with others also going through the program. That kind of mutual social support can make a big difference. The group I joined was all comprised of fellow economists (some other grad students, some faculty), so we had a lot of shared experiences.

Some of the techniques feel very foolish, and others just don’t seem to work for me; but I did find at least some of the meditation techniques (which they annoyingly insist on calling by the silly name “PQ reps”) have helped me relax.

But there’s one part of the PQ program in particular that I just can’t buy into, and this is the idea that adversity is a gift and an opportunity.

They call it the “Sage perspective”: You observe the world without judging what is good or bad, and any time you think something is bad, you find a way to transform it into a gift and an opportunity. The claim is that everything—or nearly everything—that happens to you can make you better off. There’s a lot of overlap here with the attitude “Everything happens for a reason”.

I don’t doubt that sincerely believing this would make you happier. Nevertheless, it is obviously false.

If indeed adversity were a gift, we would seek it out. If getting fired or going bankrupt or getting sick were a gift and an opportunity, we’d work to make these things happen.

Yes, it’s true that sometimes an event which seems bad at the time can turn out to have good consequences in the long run. This is simply because we are unable to foresee all future ramifications. Sometimes things turn out differently than you think they will. But most of the time, when something seems bad, it is actually bad.

There might be some small amount of discomfort or risk that would be preferable to a life of complete safety and complacency; but we are perfectly capable of seeking out whatever discomfort or risk we choose. Most of us live with far more discomfort and risk than we would prefer, and simply have no choice in the matter.

If adversity were a gift, people would thank you for giving it to them. “Thanks for dumping me!” “Thanks for firing me!” “Thanks for punching me!” These aren’t the sort of thing we hear very often (at least not sincerely).

I think this is fairly obvious, honestly, so I won’t belabor it any further. But it raises a question: Is there a way to salvage the mental health benefits of this attitude while abandoning its obvious falsehood?

“Everything happens for a reason” doesn’t work; we live in a universe of deep randomness, ruled by the blind idiot gods of natural law.

“Every cloud has a silver lining” is better; but clearly not every bad thing has an upside, or if it does the upside can be so small as to be utterly negligible. (What was the upside of Rwandan genocide?) Restricted to ordinary events like getting fired this one works pretty well; but it obviously fails for the most extreme traumas, and doesn’t seem particularly helpful for the death of a loved one either.

“What doesn’t kill me makes me stronger” is better still, but clearly not true in every case; some bad events that don’t actually kill us can traumatize us and make the rest of our lives harder. Perhaps “What doesn’t permanently damage me makes me stronger”?

I think the version of this attitude that I have found closest to the truth is “Everything is raw material”. Sometimes bad things just happen: Bad luck, or bad actions, can harm just about anyone at just about any time. But it is within our power to decide how we will respond to what happens to us, and wallowing in despair is almost never the best response.

Thus, while it is foolish to see adversity as a gift, it is not so foolish to see it as an opportunity. Don’t try to pretend that bad things aren’t bad. There’s no sense in denying that we would prefer some outcomes over others, and we feel hurt or disappointed when things don’t turn out how we wanted. Yet even what is bad can still contain within it chances to learn or make things better.

How men would benefit from a less sexist world

Nov 22 JDN 2459176

November 19 is International Men’s Day, so this week seemed an appropriate time for this post.

It’s obvious that a less sexist world would benefit women. But there are many ways in which it would benefit men as well.

First, there is the overwhelming pressure of conforming to norms of masculinity. I don’t think most women realize just how oppressive this is, how nearly every moment of our lives we are struggling to conform to a particular narrow vision of what it is to be a man, from which even small deviations can be severely punished. A less sexist world would mean a world where these pressures are greatly reduced.

Second, there is the fact that men are subjected to far more violence than women. Men are three times as likely to be murdered as women. This violence has many causes—indeed, the fact that men are much more likely to be both victims and perpetrators of violence nearly everywhere in the world suggests genetic causes—but a less sexist world could be a world with less violence in general, and men would benefit most from that.

Third, a less sexist world is a world where men and women feel more equal and more comfortable with one another, a world in which relationships between men and women can be deeper and more authentic. Another part of the male experience that most women don’t seem to understand is how incredibly painful it is to be treated as “Schrodinger’s Rapist”, where you are considered a potential predator by default and have to constantly signal that you are not threatening. To be clear, the problem isn’t that women are trying to protect themselves from harm; it’s that their risk of being harmed is high enough that they have to do this. I’m not saying women should stop trying to play it safe around men; I’m saying that we should be trying to find ways to greatly reduce the risk of harm that they face—and that doing so would benefit both women, who would be safer, and men, who wouldn’t have to be treated as potential predators at all times.

Feminists have actually done a lot of things that directly benefit men, including removing numerous laws that discriminate against men.

Are there some men who stand to be harmed by a less sexist society? Sure. Rapists clearly stand to be harmed. Extremely misogynist men will be pressured to change, which could be harmful to them. And, to be clear, it won’t all be benefits even for the rest of us. We will have to learn new things, change how we behave, challenge some of our most deep-seated norms and attitudes. But overall, I think that most men are already better off because of feminism, and would continue to be even better off still if the world became more feminist.

Why does this matter? Wouldn’t the benefits to women be a sufficient reason to make a less sexist world, even if it did end up harming most men?

Well, yes and no: It actually depends on how much it would harm men. If those harms were actually large enough, they would present a compelling reason not to make a more feminist world. That is clearly not the case, and this should be obvious to just about anyone; but it’s not a logical impossibility. Indeed, even knowing that the harms are not enough to justify abandoning the entire project, they could still be large enough to justify slowing it down or seeking other approaches to solving the problems feminism was intended to solve.

But yes, clearly feminism would be worth doing even if it had no net benefit to men. Yet, the fact that it does have a net benefit to most men is useful information.

First, it tells us that the world is nonzero-sum, that we can make some people better off without making others equally worse off. This is a deep and important insight that I think far too few people have really internalized.

Second, it provides numerous strategic benefits for recruiting men to the cause. Consider the following two potential sales pitches for feminism:

“You benefit from this system, but women are harmed by it. You should help us change it, even though that would harm you! If you don’t, you’re a bad person!”

“Women are harmed most by this system, but you are harmed by it too. You can help us change it, and we’ll make almost everyone better off, including you!”

Which of those two sales pitches seems more likely to convince someone who is on the fence?

Consider in particular men who aren’t particularly well-off themselves. If you are an unemployed, poor Black man, you probably find that the phrase “male privilege” rings a little hollow. Yes, perhaps you would be even worse off if you were a woman, but you’re not doing great right now, and you probably aren’t thrilled with the idea of risking being made even worse off, even by changes that you would otherwise agree are beneficial to society as a whole.

Similar reasoning applies to other “privileged” groups: Poor White men dying from treatable diseases because they can’t afford healthcare probably aren’t terribly moved by the phrase “White privilege”. Emphasizing the ways that your social movement will harm people seems like a really awful way of recruiting support, doesn’t it?

Yes, sometimes things that are overall good will harm some people, and we have to accept that. But the world is not always this way, and in fact some of the greatest progress in human civilization has been of the sort that benefits nearly everyone. Indeed, perhaps we should focus our efforts on the things that will benefit the most people, and then maybe come back later for things that benefit some at the expense of others?

What’s wrong with “should”?

Nov 8 JDN 2459162

I have been a patient in cognitive behavioral therapy (CBT) for many years now. The central premise that thoughts can influence emotions is well-founded, and the results of CBT are empirically well supported.

One of the central concepts in CBT is cognitive distortions: There are certain systematic patterns in how we tend to think, which often results in beliefs and emotions that are disproportionate with reality.

Most of the cognitive distortions CBT deals with make sense to me—and I am well aware that my mind applies them frequently: All-or-nothing, jumping to conclusions, overgeneralization, magnification and minimization, mental filtering, discounting the positive, personalization, emotional reasoning, and labeling are all clearly distorted modes of thinking that nevertheless are extremely common.

But there’s one “distortion” on CBT lists that always bothers me: “should statements”.

Listen to this definition of what is allegedly a cognitive distortion:

Another particularly damaging distortion is the tendency to make “should” statements. Should statements are statements that you make to yourself about what you “should” do, what you “ought” to do, or what you “must” do. They can also be applied to others, imposing a set of expectations that will likely not be met.

When we hang on too tightly to our “should” statements about ourselves, the result is often guilt that we cannot live up to them. When we cling to our “should” statements about others, we are generally disappointed by their failure to meet our expectations, leading to anger and resentment.

So any time we use “should”, “ought”, or “must”, we are guilty of distorted thinking? In other words, all of ethics is a cognitive distortion? The entire concept of obligation is a symptom of a mental disorder?

Different sources on CBT will define “should statements” differently, and sometimes they offer a more nuanced definition that doesn’t have such extreme implications:

Individuals thinking in ‘shoulds’, ‘oughts; or ‘musts’ have an ironclad view of how they and others ‘should’ and ‘ought’ to be. These rigid views or rules can generate feels of anger, frustration, resentment, disappointment and guilt if not followed.

Example: You don’t like playing tennis but take lessons as you feel you ‘should’, and that you ‘shouldn’t’ make so many mistakes on the court, and that your coach ‘ought to’ be stricter on you. You also feel that you ‘must’ please him by trying harder.

This is particularly problematic, I think, because of the All-or-Nothing distortion which does genuinely seem to be common among people with depression: Unless you are very clear from the start about where to draw the line, our minds will leap to saying that all statements involving the word “should” are wrong.

I think what therapists are trying to capture with this concept is something like having unrealistic expectations, or focusing too much on what could or should have happened instead of dealing with the actual situation you are in. But many seem to be unable to articulate that clearly, and instead end up asserting that entire concept of moral obligation is a cognitive distortion.

There may be a deeper error here as well: The way we study mental illness doesn’t involve enough comparison with the control group. Psychologists are accustomed to asking the question, “How do people with depression think?”; but they are not accustomed to asking the question, “How do people with depression think compared to people who don’t?” If you want to establish that A causes B, it’s not enough to show that those with B have A; you must also show that those who don’t have B also don’t have A.

This is an extreme example for illustration, but suppose someone became convinced that depression is caused by having a liver. They studied a bunch of people with depression, and found that they all had livers; hypothesis confirmed! Clearly, we need to remove the livers, and that will cure the depression.

The best example I can find of a study that actually asked that question compared nursing students and found that cognitive distortions explain about 20% of the variance in depression. This is a significant amount—but still leaves a lot unexplained. And most of the research on depression doesn’t even seem to think to compare against people without depression.

My impression is that some cognitive distortions are genuinely more common among people with depression—but not all of them. There is an ongoing controversy over what’s called the depressive realism effect, which is the finding that in at least some circumstances the beliefs of people with mild depression seem to be more accurate than the beliefs of people with no depression at all. The result is controversial both because it seems to threaten the paradigm that depression is caused by distortions, and because it seems to be very dependent on context; sometimes depression makes people more accurate in their beliefs, other times it makes them less accurate.

Overall, I am inclined to think that most people have a variety of cognitive distortions, but we only tend to notice when those distortions begin causing distress—such when are they involved in depression. Human thinking in general seems to be a muddled mess of heuristics, and the wonder is that we function as well as we do.

Does this mean that we should stop trying to remove cognitive distortions? Not at all. Distorted thinking can be harmful even if it doesn’t cause you distress: The obvious example is a fanatical religious or political belief that leads you to harm others. And indeed, recognizing and challenging cognitive distortions is a highly effective treatment for depression.

Actually I created a simple cognitive distortion worksheet based on the TEAM-CBT approach developed by David Burns that has helped me a great deal in a remarkably short time. You can download the worksheet yourself and try it out. Start with a blank page and write down as many negative thoughts as you can, and then pick 3-5 that seem particularly extreme or unlikely. Then make a copy of the cognitive distortion worksheet for each of those thoughts and follow through it step by step. Particularly do not ignore the step “This thought shows the following good things about me and my core values:”; that often feels the strangest, but it’s a critical part of what makes the TEAM-CBT approach better than conventional CBT.

So yes, we should try to challenge our cognitive distortions. But the mere fact that a thought is distressing doesn’t imply that it is wrong, and giving up on the entire concept of “should” and “ought” is throwing out a lot of babies with that bathwater.

We should be careful about labeling any thoughts that depressed people have as cognitive distortions—and “should statements” is a clear example where many psychologists have overreached in what they characterize as a distortion.

Trump will soon be gone. But this isn’t over.

Nov 8 JDN 2459162

After a frustratingly long wait for several states to finish counting their mail-in ballots (particularly Pennsylvania, Nevada, and Arizona), Biden has officially won the Presidential election. While it was far too close in a few key states, this is largely an artifact of the Electoral College: Biden’s actual popular vote advantage was over 4 million votes. We now have our first Vice President who is a woman of color. I think it’s quite reasonable for us all to share a long sigh of relief at this result.

We have won this battle. But the war is far from over.

First, there is the fact that we are still in a historic pandemic and economic recession. I have no doubt that Biden’s policy response will be better than Trump’s; but he hasn’t taken office yet, and much of the damage has already been done. Things are not going to get much better for quite awhile yet.

Second, while Biden is a pretty good candidate, he does have major flaws.

Above all, Biden is still far too hawkish on immigration and foreign policy. He won’t chant “build the wall!”, but he’s unlikely to tear down all of our border fences or abolish ICE. He won’t rattle the saber with Iran or bomb civilians indiscriminately, but he’s unlikely to end the program of assassination drone strikes. Trump has severely, perhaps irrevocably, damaged the Pax Americana with his ludicrous trade wars, alienation of our allies, and fawning over our enemies; but whether or not Biden can restore America’s diplomatic credibility, I have no doubt that he’ll continue to uphold—and deploy—America’s military hegemony. Indeed, the failure of the former could only exacerbate the latter.

Biden’s domestic policy is considerably better, but even there he doesn’t go far enough. His healthcare plan is a substantial step forward, improving upon the progress already made by Obamacare; but it’s still not the single-payer healthcare system we really need. He has some good policy ideas for directly combating discrimination, but isn’t really addressing the deep structural sources of systemic racism. His anti-poverty programs would be a step in the right direction, but are clearly insufficient.

Third, Democrats did not make significant gains in Congress, and while they kept the majority in the House, they are unlikely to gain control of the Senate. Because the Senate is so powerful and Mitch McConnell is so craven, this could be disastrous for Biden’s ability to govern.

But there is an even more serious problem we must face as a country: Trump got 70 million votes. Even after all he did—his endless lies, his utter incompetence, his obvious corruption—and all that happened—the mishandled pandemic, the exacerbated recession—there were still 70 million people willing to vote for Trump. I said it from the beginning: I have never feared Trump nearly so much as I fear an America that could elect him.

Yes, of course he would have had a far worse shot if our voting system were better: Several viable parties, range voting, and no Electoral College would have all made things go very differently than they did in 2016. But the fact remains that tens of millions of Americans were willing to vote for this man not once, but twice.

What can explain the support of so many people for such an obviously terrible leader?

First, there is misinformation: Our mass media is biased and can give a very distorted view of the world. Someone whose view of world events was shaped entirely by right-wing media like Fox News (let alone OAN) might not realize how terrible Trump is, or might be convinced that Biden is somehow even worse. Yet today, in the 21st century, our access to information is virtually unlimited. Anyone who really wanted to know what Trump is like would be able to find out—so whatever ignorance or misinformation Trump voters had, they bear the greatest responsibility for it.

Then, there is discontent: Growth in total economic output has greatly outpaced growth in real standard of living for most Americans. While real per-capita GDP rose from $26,000 in 1974 to $56,000 today (a factor of 2.15, or 1.7% per year), real median personal income only rose from $25,000 to $36,000 (a factor of 1.44, or 0.8% per year). This reflects the fact that more and more of our country’s wealth is being concentrated in the hands of the rich. Combined with dramatically increased costs of education and healthcare, this means that most American families really don’t feel like their standard of living has meaningfully improved in a generation or more.

Yet if people are discontent with how our economy is run… why would they vote for Donald Trump, who epitomizes everything that is wrong with that system? The Democrats have not done enough to fight rising inequality and spiraling healthcare costs, but they have at least done something—raising taxes here, expanding Medicaid there. This is not enough, since it involves only tweaking the system at the edges rather than solving the deeper structural problems—but it has at least some benefit. The Republicans at their best have done nothing, and at their worst actively done everything in their power to exacerbate rising inequality. And Trump is no different in this regard than any other Republican; he promised more populist economic policy, but did not deliver it in any way. Do people somehow not see that?

I think we must face up to the fact that racism and sexism are clearly a major part of what motivates supporters of Trump. Trump’s core base consists of old, uneducated White men. Women are less likely to support him, and young people, educated people, and people of color are far less likely to support him. The race gap is staggering: A mere 8% of Black people support Trump, while 54% of White people do. While Asian and Hispanic voters are not quite so univocal, still it’s clear that if only non-White people had voted Biden would have won an utter landslide and might have taken every state—yes, likely even Florida, where Cuban-Americans did actually lean slightly toward Trump. The age and education gaps are also quite large: Among those under 30, only 30% support Trump, while among those over 65, 52% do. Among White people without a college degree, 64% support Trump, while among White people with a college degree, only 38% do. The gender gap is smaller, but still significant: 48% of men but only 42% of women support Trump. (Also the fact that the gender gap was smaller this year than in 2016 could reflect the fact that Clinton was running for President but Harris was only running for Vice President.)

We shouldn’t ignore the real suffering and discontent that rising inequality has wrought, nor should we dismiss the significance of right-wing propaganda. Yet when it comes right down to it, I don’t see how we can explain Trump’s popularity without recognizing that an awful lot of White men in America are extremely racist and sexist. The most terrifying thing about Trump is that millions of Americans do know what he’s like—and they’re okay with that.

Trump will soon be gone. But many others like him remain. We need to find a way to fix this, or the next racist, misogynist, corrupt, authoritarian psychopath may turn out to be a lot less foolish and incompetent.

What meritocracy trap?

Nov 1 JDN 2459155

So I just finished reading The Meritocracy Trap by David Markovits.

The basic thesis of the book is that America’s rising inequality is not due to a defect in our meritocratic ideals, but is in fact their ultimate fruition. Markovits implores us to reject the very concept of meritocracy, and replace it with… well, something, and he’s never very clear about exactly what.

The most frustrating thing about reading this book is trying to figure out where Markovits draws the line for “elite”. He rapidly jumps between talking about the upper quartile, the upper decile, the top 1%, and even the top 0.1% or top 0.01% while weaving his narrative. The upper quartile of the US contains 75 million people; the top 0.01% contains only 300,000. The former is the size of Germany, the latter the size of Iceland (which has fewer people than Long Beach). Inequality which concentrates wealth in the top quartile of Americans is a much less serious problem than inequality which concentrates wealth in the top 0.01%. It could still be a problem—those lower three quartiles are people too—but it is definitely not nearly as bad.

I think it’s particularly frustrating to me personally, because I am an economist, which means both that such quantitative distinctions are important to me, and also that whether or not I myself am in this “elite” depends upon which line you are drawing. Do I have a post-graduate education? Yes. Was I born into the upper quartile? Not quite, but nearly. Was I raised by married parents in a stable home? Certainly. Am I in the upper decile and working as a high-paid professional? Hopefully I will be soon. Will I enter the top 1%? Maybe, maybe not. Will I join the top 0.1%? Probably not. Will I ever be in the top 0.01% and a captain of industry? Almost certainly not.

So, am I one of the middle class who are suffering alienation and stagnation, or one of the elite who are devouring themselves with cutthroat competition? Based on BLS statistics for economists and job offers I’ve been applying to, my long-term household income is likely to be about 20-50% higher than my parents’; this seems like neither the painful stagnation he attributes to the middle class nor the unsustainable skyrocketing of elite incomes. (Even 50% in 30 years is only 1.4% per year, about our average rate of real GDP growth.) Marxists would no doubt call me petit bourgeoisie; but isn’t that sort of the goal? We want as many people as possible to live comfortable upper-middle class lives in white-collar careers?

Markovits characterizes—dare I say caricatures—the habits of the middle-class versus the elite, and once again I and most people I know cross-cut them: I spend more time with friends than family (elite), but I cook familiar foods, not fancy dinners (middle); I exercise fairly regularly and don’t watch much television (elite) but play a lot of video games and sleep a lot as well (middle). My web searches involve technology and travel (elite), but also chronic illness (middle). I am a donor to Amnesty International (elite) but also play tabletop role-playing games (middle). I have a functional, inexpensive car (middle) but a top-of-the-line computer (elite)—then again that computer is a few years old now (middle). Most of the people I hang out with are well-educated (elite) but struggling financially (middle), civically engaged (elite) but pessimistic (middle). I rent my apartment and have a lot of student debt (middle) but own stocks (elite). (The latter seemed like a risky decision before the pandemic, but as stock prices have risen and student loan interest was put on moratorium, it now seems positively prescient.) So which class am I, again?

I went to public school (middle) but have a graduate degree (elite). I grew up in Ann Arbor (middle) but moved to Irvine (elite). Then again my bachelor’s was at a top-10 institution (elite) but my PhD will be at only a top-50 (middle). The beautiful irony there is that the top-10 institution is the University of Michigan and the top-50 institution is the University of California, Irvine. So I can’t even tell which class each of those events is supposed to represent! Did my experience of Ann Arbor suddenly shift from middle class to elite when I graduated from public school and started attending the University of Michigan—even though about a third of my high school cohort did exactly that? Was coming to UCI an elite act because it’s a PhD in Orange County, or a middle-class act because it’s only a top-50 university?

If the gap between these two classes is such a wide chasm, how am I straddling it? I honestly feel quite confident in characterizing myself as precisely the upwardly-mobile upper-middle class that Markovits claims no longer exists. Perhaps we’re rarer than we used to be; perhaps our status is more precarious; but we plainly aren’t gone.

Markovits keeps talking about “radical differences” “not merely in degree but in kind” between “subordinate” middle-class workers and “superordinate” elite workers, but if the differences are really that stark, why is it so hard to tell which group I’m in? From what I can see, the truth seems less like a sharp divide between middle-class and upper-class, and more like an increasingly steep slope from middle-class to upper-middle class to upper-class to rich to truly super-rich. If I had to put numbers on this, I’d say annual household incomes of about $50,000, $100,000, $200,000, $400,000, $1 million, and $10 million respectively. (And yet perhaps I should add more categories: Even someone who makes $10 million a year has only pocket change next to Elon Musk or Jeff Bezos.) The slope has gotten steeper over time, but it hasn’t (yet?) turned into a sharp cliff the way Markovits describes. America’s Lorenz curve is clearly too steep, but it doesn’t have a discontinuity as far as I can tell.

Some of the inequalities Markovits discusses are genuine, but don’t seem to be particularly related to meritocracy. The fact that students from richer families go to better schools indeed seems unjust, but the problem is clearly not that the rich schools are too good (except maybe at the very top, where truly elite schools seem a bit excessive—five-figure preschool tuition?), but that the poor schools are not good enough. So it absolutely makes sense to increase funding for poor schools and implement various reforms, but this is hardly a radical notion—nor is it in any way anti-meritocratic. Providing more equal opportunities for the poor to raise their own station is what meritocracy is all about.

Other inequalities he objects to seem, if not inevitable, far too costly to remove: Educated people are better parents, who raise their children in ways that make them healthier, happier, and smarter? No one is going to apologize for being a good parent, much less stop doing so because you’re concerned about what it does to inequality. If you have some ideas for how we might make other people into better parents, by all means let’s hear them. But I believe I speak for the entire upper-middle class when I say: when I have kids of my own, I’m going to read to them, I’m not going to spank them, and there’s not a damn thing you can do to change my mind on either front. Quite frankly, this seems like a heavy-handed satire of egalitarianism, right out of Harrison Bergeron: Let’s make society equal by forcing rich people to neglect and abuse their kids as much as poor people do! My apologies to Vonnegut: I thought you were ridiculously exaggerating, but apparently some people actually think like this.

This is closely tied with the deepest flaw in the argument: The meritocratic elite are actually more qualified. It’s easy to argue that someone like Donald Trump shouldn’t rule the world; he’s a deceitful, narcissistic, psychopathic, incompetent buffoon. (The only baffling part is that 40% of American voters apparently disagree.) But it’s a lot harder to see why someone like Bill Gates shouldn’t be in charge of things: He’s actually an extremely intelligent, dedicated, conscientious, hard-working, ethical, and competent individual. Does he deserve $100 billion? No, for reasons I’ve talked about before. But even he knows that! He’s giving most of it away to highly cost-effective charities! Bill Gates alone has saved several million lives by his philanthropy.

Markovits tries to argue that the merits of the meritocratic elite are arbitrary and contextual, like the alleged virtues of the aristocratic class: “The meritocratic virtues, that is, are artifacts of economic inequality in just the fashion in which the pitching virtues are artifacts of baseball.” (p. 264) “The meritocratic achievement commonly celebrated today, no less than the aristocratic virtue acclaimed in the ancien regime, is a sham.” (p. 268)

But it’s pretty hard for me to see how things like literacy, knowledge of history and science, and mathematical skill are purely arbitrary. Even the highly specialized skills of a quantum physicist, software engineer, or geneticist are clearly not arbitrary. Not everyone needs to know how to solve the Schrodinger equation or how to run a polymerase chain reaction, but our civilization greatly benefits from the fact that someone does. Software engineers aren’t super-productive because of high inequality; they are super-productive because they speak the secret language of the thinking machines. I suppose some of the skills involved in finance, consulting, and law are arbitrary and contextual; but he makes it sound like the only purpose graduate school serves is in teaching us table manners.

Precisely by attacking meritocracy, Markovits renders his own position absurd. So you want less competent people in charge? You want people assigned to jobs they’re not good at? You think businesses should go out of their way to hire employees who will do their jobs worse? Had he instead set out to show how American society fails at achieving its meritocratic ideals—indeed, failing to provide equality of opportunity for the poor is probably the clearest example of this—he might have succeeded. But instead he tries to attack the ideals themselves, and fails miserably.

Markovits avoids the error that David Graeber made: Graeber sees that there are many useless jobs but doesn’t seem to have a clue why these jobs exist (and turns to quite foolish Marxian conspiracy theories to explain it). Markovits understands that these jobs are profitable for the firms that employ them, but unproductive for society as a whole. He is right; this is precisely what virtually the entire fields of finance, sales, advertising, and corporate law consist of. Most people in our elite work very hard with great skill and competence, and produce great profits for the corporations that employ them, all while producing very little of genuine societal value. But I don’t see how this is a flaw in meritocracy per se.

Nor does Markovits stop at accusing employment of being rent-seeking; he takes aim at education as well: “when the rich make exceptional investments in schooling, this does reduce the value of ordinary, middle-class training and degrees. […] Meritocratic education inexorably engenders a wasteful and destructive arms educational arms race, which ultimately benefits no one, not even the victors.” (p.153) I don’t doubt that education is in part such a rent-seeking arms race, and it’s worthwhile to try to minimize that. But education is not entirely rent-seeking! At the very least, is there not genuine value in teaching children to read and write and do arithmetic? Perhaps by the time we get to calculus or quantum physics or psychopathology we have reached diminishing returns for most students (though clearly at least some people get genuine value out of such things!), but education is not entirely comprised of signaling or rent-seeking (and nor do “sheepskin effects” prove otherwise).

My PhD may be less valuable to me than it would be to someone in my place 40 years ago, simply because there are more people with PhDs now and thus I face steeper competition. Then again, perhaps not, as the wage premium for college and postgraduate education has been increasing, not decreasing, over that time period. (How much of that wage premium is genuine social benefit and how much is rent-seeking is difficult to say.) In any case it’s definitely still valuable. I have acquired many genuine skills, and will in fact be able to be genuinely more productive as well as compete better in the labor market than I would have without it. Some parts of it have felt like a game where I’m just trying to stay ahead of everyone else, but it hasn’t all been that. A world where nobody had PhDs would be a world with far fewer good scientists and far slower technological advancement.

Abandoning meritocracy entirely would mean that we no longer train people to be more productive or match people to the jobs they are most qualified to do. Do you want a world where surgery is not done by the best surgeons, where airplanes are not flown by the best pilots? This necessarily means less efficient production and an overall lower level of prosperity for society as a whole. The most efficient way may not be the best way, but it’s still worth noting that it’s the most efficient way.

Really, is meritocracy the problem, or is it something else?

Markovits is clearly right that something is going wrong with American society: Our inequality is much too high, and our job market is much too cutthroat. I can’t even relate to his description of what the job market was like in the 1960s (“Old Economy Steve” has it right): “Even applicants for white-collar jobs received startlingly little scrutiny. For most midcentury workers, getting a job did not involve any application at all, in the competitive sense of the term.” (p.203)

In fact, if anything he seems to understate the difference across time, perhaps because it lets him overstate the difference across class (p. 203):

Today, by contrast, the workplace is methodically arranged around gradations of skill. Firms screen job candidates intensively at hiring, and they then sort elite and non-elite workers into separate physical spaces.

Only the very lowest-wage employers, seeking unskilled workers, hire casually. Middle-class employers screen using formal cognitive tests and lengthy interviews. And elite employers screen with urgent intensity, recruiting from only a select pool and spending millions of dollars to probe applicants over several rounds of interviews, lasting entire days.

Today, not even the lowest-wage employers hire casually! Have you ever applied to work at Target? There is a personality test you have to complete, which I presume is designed to test your reliability as an obedient corporate drone. Never in my life have I gotten a job that didn’t involve either a lengthy application process or some form of personal connection—and I hate to admit it, but usually the latter. It is literally now harder to get a job as a cashier at Target than it was to get a job as an engineer at Ford 60 years ago.

But I still can’t shake the feeling that meritocracy is not exactly what’s wrong here. The problem with the sky-high compensation packages at top financial firms isn’t that they are paid to people who are really good at their jobs; it’s that those jobs don’t actually accomplish anything beneficial for society. Where elite talent and even elite compensation is combined with genuine productivity, such as in science and engineering, it seems unproblematic (and I note that Markovits barely even touches on these industries, perhaps because he sees they would undermine his argument). The reason our economic growth seems to have slowed as our inequality has massively surged isn’t that we are doing too good a job of rewarding people for being productive.

Indeed, it seems like the problem may be much simpler: Labor supply exceeds labor demand.

Take a look at this graph from the Federal Reserve Bank of San Francisco:

[Beveridge_curve_data.png]

This graph shows the relationship over time between unemployment and job vacancies. As you can see, they are generally inversely related: More vacancies means less unemployment. I have drawn in a green line which indicates the cutoff between having more vacancies than unemployment—upper left—and having more unemployment than vacancies—lower right. We have almost always been in the state of having more unemployment than we have vacancies; notably, the mid-1960s were one of the few periods in which we had significantly more vacancies than unemployment.

For decades we’ve been instituting policies to try to give people “incentives to work”; but there is no shortage of labor in this country. We seem to have plenty of incentives to work—what we need are incentives to hire people and pay them well.

Indeed, perhaps we need incentives not to work—like a basic income or an expanded social welfare system. Thanks to automation, productivity is now astonishingly high, and yet we work ourselves to death instead of enjoying leisure.

And of course there are various other policy changes that have made our inequality worse—chiefly the dramatic drops in income tax rates at the top brackets that occurred under Reagan.

In fact, many of the specific suggestions Markovits makes—which, much to my chagrin, he waits nearly 300 pages to even mention—are quite reasonable, or even banal: He wants to end tax deductions for alumni donations to universities and require universities to enroll more people from lower income brackets; I could support that. He wants to regulate finance more stringently, eliminate most kinds of complex derivatives, harmonize capital gains tax rates to ordinary income rates, and remove the arbitrary cap on payroll taxes; I’ve been arguing for all of those things for years. What about any of these policies is anti-meritocratic? I don’t see it.

More controversially, he wants to try to re-organize production to provide more opportunities for mid-skill labor. In some industries I’m not sure that’s possible: The 10X programmer is a real phenomenon, and even mediocre programmers and engineers can make software and machines that are a hundred times as productive as doing the work by hand would be. But some of his suggestions make sense, such as policies favoring nurse practitioners over specialist doctors and legal secretaries instead of bar-certified lawyers. (And please, please reform the medical residency system! People die from the overwork caused by our medical residency system.)

But I really don’t see how not educating people or assigning people to jobs they aren’t good at would help matters—which means that meritocracy, as I understand the concept, is not to blame after all.