The Bleeding Heart and the Robber Baron

Perhaps you’ve heard of  Bruce Yandle’s idea of  “the Baptist and the bootlegger.”

This is how it goes: A group of puritans – the “Baptists” –  argue that public policy should discourage a particular vice (e.g., alcoholism) by banning consumption.  The self-interested heathens  – the “bootleggers” – swoop in to support prohibition because it limits the supply and forces the price up, resulting in windfall profits for the providers who remain.

See Prohibition, prostitution, the Drug War, etc.

I’ve been thinking about a phenomenon that is the mirror image of the Baptist and the Bootlegger.  Call it “the bleeding heart and the robber baron.”

In this case it’s the well-intentioned lefties – the “bleeding hearts” – who  advocate a policy that will benefit the public (e.g., affordable housing, universal health care, public education).  And then the self-interested, right-leaning corporatists – the “robber barons” – swoop  in to reap economic rents from the policies that give them preferential treatment.

See Fannie Mae, Freddie Mac, K12, health insurance companies, the ratings agencies, etc.

In each case, you have support that crosses typical cultural/political lines.  In one case, the lefties take the high road, and the righties follow their self-interest.  In the other, the righties take the high road, and the lefties follow their self-interest.

In both cases, all the rest of us pay the price. Higher prices, higher taxes, higher incarceration rates, and fewer providers to choose from.

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Ingredients of the Primordial Soup…

Here’s where I’m coming from:

(1) completed English major at a liberal arts college (Pomona College)

(2) trained as a management consultant at McKinsey & Company

(3) studied psychology, neuroscience, and linguistics at UCLA in preparation for a Ph.D. in cognitive neuroscience that I never completed

(4) Completed the Chartered Financial Analyst (CFA) program

(5) Well-read (but incompletely self-educated) in evolutionary psychology, behavioral economics, and macroeconomics

In the interests of full disclosure, I should add that I also have a fair bit of training in film-making and storytelling, including a certificate in screenwriting from UCLA Extension and completion of the PBS Producers Workshop.  I mention this only because my understanding of storytelling has informed my understanding of human psych, perhaps even more than my 2 years studying cognitive neuroscience!

More about this later….

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Arising from the Primordial Soup…

…of my brain.

Goals: (1) to capture more of the thoughts that rumble through my head, (2) to force myself to exert more discipline in my thinking, (3) to find a stronger persuasive voice in my writing, (4) to cast doubt upon items of conventional wisdom, (5) to call attention to scientists (and others) who are humbly trying to figure out how human beings work, (6) to document  changes in my life.

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