By Alexander Green I’ve now written nearly a dozen columns regarding author and New York Times columnist Robert Frank’s contention that our country is not a meritocracy, that economic and financial success is primarily due not to education, hard work, talent, skill, or risk-taking… but to “luck.”
Having covered this topic as thoroughly as Ken Burns covered the history of jazz in his 18-hour PBS special, I promise this missive on the subject will be my last.
But I want to emphasize that ideas are powerful. They have consequences.
With that in mind, here are seven good reasons to reject Frank’s thesis:
It stokes resentment and class envy. Europeans have a long tradition of hostility toward “the rich” and for good reason. For centuries, most of the wealth there was inherited or stolen (or both). Virtually everyone worked for royals, aristocrats and other “nobles” who had done little or nothing to earn what they had. Contrast that with America’s market-based economy, where every transaction is voluntary and the wealthiest individuals – like Bill Gates and Jeff Bezos – have generally done the most to transform society for the better.
It’s dispiriting. Am I really supposed to tell David, my 13-year-old son, “Educate yourself. Work hard. Get back up every time you’re knocked down. But, listen kid, in the end it’s really all about luck”?
It’s demeaning to those who have sacrificed a great deal – including often the best years of their lives – to achieve their economic success. It’s particularly insulting to those who have come the furthest – women, blacks, Hispanics, gays, and those with mental or physical handicaps. I’d recommend taking a step back before you tell these folks their success was primarily luck.
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It excuses failure and provides intellectual cover for slackers, shirkers and nonachievers who desperately want to believe that “the economy is rigged” and economic success is not about good habits and smart choices.
It reveals an unwarranted anti-business bias. When Roger Federer won his eighth Wimbledon title and 19th Grand Slam singles title two weeks ago, was your first thought, “Wow. That Roger sure is lucky”? When you attend a recital at Carnegie Hall, do you walk out saying, “You know, when Itzhak Perlman picks up that violin, I can’t believe how lucky he gets”? No one attributes long-term success in athletics, music, literature, entertainment or the arts to luck. It isn’t true in business either.
It provides intellectual justification for high progressive tax rates. Frank and his ilk want to convince people that the economically successful didn’t really earn it and don’t deserve it. Therefore, government confiscation and redistribution is simple social justice.
It isn’t true. Frank’s claims don’t just defy common sense and everyday experience. As I mentioned in previous columns, decades of research and data by Dr. Thomas Stanley reveal it to be false.
Unfortunately, Frank’s views have taken root with many. They refer to economically successful individuals as “the fortunate” or “society’s lottery winners.” (The latter is a particularly low blow. Freely made economic transactions are, …read more
Source:: Investment You
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