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Culture War Roundup for the week of February 6, 2023

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What is the liberal argument for why the free market doesn’t solve the problem of “looked over” minority applicants?

If there were a number of minority business applicants who felt looked over in hiring and not adequately promoted, why wouldn’t they want to form their own business? For instance, they can simply form their own trading company. Ostensibly, if the problem is so severe as to warrant large scale national discussion and policy change, there must be hundreds of thousands of minorities capable of making way more money than they currently make if only they are hired properly and placed in the appropriate position. Importantly, they would be making money for anyone who invested in the business. As there are already exorbitantly wealthy minority investors, shouldn’t this be occurring? And if the liberal theory were correct, wouldn’t this just be free money for everyone involved? All you would have to do is establish a trading firm made up of whichever minority applicants are being discriminated against.

As a gratuitous example, if Goldman Sachs weren’t hiring Korean PhDs to work on algorithmic trading, someone could swoop in and make free money just by hiring them. Or better yet, a Korean investor could help someone start their very own Korean version of Goldman. We saw something like this with physics PhDs; someone realized they would be exceptionally good at applying their intelligence to understanding the market mathematically, and those who hired them made bank. Now everyone hires them.

So if I were a female trader, or even better, an Afro-Caribbean female trader, and I were not placed in a position which maximized company gains, I would just need to collect together a few dozen others in a similar position and start my own boutique shop with investment from African and/or female investors, of which there are thousands. This should be an obvious decision for everyone involved. It would be a day 1 decision. It’s how non-minorities often decide to start their own business, feeling like they could be better off starting a new organization. A relative of mine started his own company with some colleagues when he felt he wasn’t being optimally placed for his own economic gain (and the company’s, given that he simply left and took clients). It’s also how, for instance, Jewish Americans involved in banking were able to start their own companies — in some cases being hired by the majority who saw their value, in other cases starting their own companies having realized their own value.

Put another way, why on earth are women and Native American and Black traders who feel discriminated against not forming their own boutique firm with the investment of progressive millionaires and even billionaires? It’s free money! And half of all retail investors could invest in the enterprise (the Progressive half). The Portland school district could put their teacher’s retirement funds into their hands, knowing it’s the greatest bang for their buck. It would be like finding an undiscovered Ivy League school, churning out Yale-level talent without anyone realizing it. Why are we not hearing the success stories of all female or all-Latino or etc trading firms?

If by liberal you mean left, then the argument is essentially that people are biased against those looked over minorities, (e.g everything from overt racism to implicit bias). How do we know this bias actually exists? The best argument I've seen is Scott Alexander's Social justice for the highly demanding of rigor. It's a little bit outdated. For instance, more recent analyses of the blind orchestra data show it can also be used to support the hypothesis that blind orchestras lowered women's chances of getting in.

For instance, more recent analyses of the blind orchestra data show it can also be used to support the hypothesis that blind orchestras lowered women's chances of getting in.

I mean, the result is the same. It's just that men are the discriminated against minority.