3 ms·
I think the model of “we could fix this if we just tried harder and sacrificed more” is actually a pretty bad model for engaging with problems that don’t have a
by AbrahamParangi 3y ago
I think the model of “we could fix this if we just tried harder and sacrificed more” is actually a pretty bad model for engaging with problems that don’t have a known, acceptable solution (so we’re ignoring garbage solutions to global warming like, prevent Africa from industrializing).
And I don’t mean that it isn’t true that we could try harder, I just mean that sometimes “trying harder” seems to make the problem worse rather than better.
I can think of a few problems like this:
- homelessness
- cost of college
- healthcare
- housing
I’m not sure if the critical factor is that the issues are morally charged and so encourage effort-heavy policies or if it’s because “trying harder” is really a supply-side subsidy, meaning money for healthcare providers or colleges or landlords. In practice at least it seems that supply side subsidies without cost controls are essentially useless, as the cost of the subsidized good rises to match the subsidy.
- xp84 3y ago> supply side subsidies without cost controls are essentially useless, as the cost of the subsidized good rises to match the subsidy. For a beautiful case study in this, in 2007 or so when they were turning off analog TV the US government allowed each household two vouchers worth up to $40 to buy a converter box, (provided the box did not offer a digital output). (Not) shockingly, not until these vouchers expired did any boxes come on the market priced under $40, even though they were not complex or expensive in cost.