Hulu’s series “The 1619 Project” blames economic inequality between blacks and whites on “racial capitalism.” But almost every example presented is the result of government policies that, in purpose or effect, discriminated against African-Americans. “The 1619 Project” makes an unintentional case for capitalism.
The series gives many examples of government interventions that undercut free markets and property rights. Eminent domain, racial red lining of mortgages, and government support and enforcement of union monopolies figure prominently.
These are the opening two paragraphs of David R. Henderson and Phillip W. Magness, “The 1619 Project on Hulu Vindicates Capitalism,” Wall Street Journal, February 20, 2023. (February 21 print edition.)
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READER COMMENTS
Richard W Fulmer
Feb 21 2023 at 9:00am
The source of America’s worst disgraces – slavery, the mistreatment of Native Americans, Jim Crow, eugenics – was not difference of opinion, race, sex, class, talent, wealth, or religion. Rather, it was that people divided along such lines were able to subvert government’s coercive power to advance their own ideas and interests.
David Seltzer
Feb 21 2023 at 3:25pm
Good point. regulatory capture at its ugliest.
Anders Jönsson
Feb 23 2023 at 1:10pm
I once listed to Stiglitz. Apart from the way he overstated information externalities and growing income inequality (measured by household not correcting for size, excluded payroll taxes and that much of the return on capital benefitted the middle classes through pension plans and beyond, ignored social return created, and correcting only for official inflation, not the quality differences, digitisation, or for that matter the slight difference between a rotary phone and a smart phone), what struck me was this: EVERY example he referred to as a result of capitalism were a result of government protecting the downside or shielding incumbents from foreign competition (the catalytic converter was monopolised and it was mandated for the simple reason that mandating exhaust would fail to exclude Japanese cars.
Same with the GFC. We created a system of prit without loss through suboptimal interest rates, regressive home owmer subsidies, fdic, high price of regulatory compliance ensuring vast barriers to entry, and all kinds of multi mortgage derivatives with supprime laws getting triple rating for the simple reason that the emitter pays and noone had an incentive ro assess the risks that sooner or later would blow up.
In fact, Stiglitz defends capitalism by what he does not say. He never floats ideas like nationalisation of assets and socialising health care without facing down the systemic challenge of prices in an industry that, predictable, has given us less for our money every year, while IT gives us more services at lower prices every year. And using technology well should help prices decline and quality and accessibility go up
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