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Notes -
The Virtue Theory of Money
Recently, Freddie deBoer published an essay called "What Would a Functioning System of Equal Opportunity Look Like for the Losers" complaining about how unfair "equality of opportunity" is. The main point is that since talent is partially heritable, if we reward people based on their abilities then people who have been unlucky in the genetic lottery will be left worse off. It's a little hard to tell exactly what way of distributing resources Freddie would prefer instead, but he seems to have the opinion that it is unjust for luck to play a significant role. In Freddie's words: "it’s hard to see how rewarding talent falls under a rubric of distributing resources to people based on that which they can control."
I think Freddie's essay is a good example of a misunderstanding about the benefits of equality of opportunity—a misunderstanding I've come to think of as the Virtue Theory of Money. Basically, this is my name for the belief that the main purpose of money is to reward people for being good.
In my experience, many people seem to have some sort of implicit belief that people should be rewarded by society according to how virtuous they are. This takes different forms: some people emphasize hard-work, conscientiousness and so on. Others emphasize the difficulty or social value of the job that someone is doing. For example, some people argue that affirmitive action is bad because it prevents talented, hardworking people from getting the jobs/university spots that they deserve. As another example, some people argue that teachers should be paid more because of how important their jobs are. The labor theory of value also seems to be partially motivated by this idea.
Read in this light, Freddie is basically complaining that talent is not a virtue and so we should not reward people for being talented. (He also seems to believe that the reason talent is not a virtue is because it is influenced by genetics, which is outside our control. I find that idea somewhat incoherent—all sorts of other apparent virtues like generosity or open-mindedness are also influenced by genetics, but that's irrelevant to my main point.)
However, I think this idea is almost totally wrong. In my view, the main reason to reward some people more than others is if doing so leads to better social outcomes. The point is not to provide personal benefit to the people rewarded but to incentivize behavior that benefits the entire society.
As an example, I believe that the best argument against affirmitive action is not that it personally hurts the individual people denied positions because of it (though I do feel sympathy for them) but because it deprives society of having the most capable people in the most important jobs. The reason that we want to select the most talented people to become doctors is because it's good to have good doctors not because being a doctor is a nice reward for being a top student. Likewise, the best argument for paying teachers more is if doing so would lead to better educational outcomes of enough magnitude to be worth the extra cost. I agree that plenty of teachers (though far from all) are nice, hard-working people who do a demanding job. But again, a job is not supposed to be a reward for being a good person, it's supposed to be a way to get something useful done.
I also think this is a serious issue. Basing hiring decisions and salaries on how virtuous people seem can cause resources to be poorly allocated in a way that hurts everybody. If we followed the Virtue Theory of Money then too many people would want to be teachers (it's already a popular job even without a major salary boost) and not enough would want to be middle managers or accountants. We would have worse doctors, engineers and scientists.
So my main response to Freddie complaining about "equality of opportunity" leading to talented people being rewarded more is: that's exactly the point! We want talented people to be incentivized to apply their talents instead of doing some routine job that almost anyone else can do. Stop trying to use the virtue theory of money and think about the long-term conseuqences of policy decisions.
Now, I do want to add a couple caveats to this. First, I think it's bad to let people suffer a lot when society has sufficient resources to help them. So I think it's reasonable for the government to give some help to people who don't have the ability to get high quality jobs. But I think we should be aware that the government is only able to do this because of how rich our society is and that this wealth depends on incentivizing talented people to use their talents. Second, I do think that there is some value in rewarding people purely for their virtue. I want to live in a society of virtuous people and so I would like virtue to be incentivized even if the economic benefits are not always easy to measure. However, I think this should usually be a secondary concern.
There's a lot of equivocation between words like "Talent", "Merit", "Virtue", but those are all vague terms that are not operationalized. And we're talking about a circular set of definitions when it is. As I've said before, because we use academics as our social sorting mechanism, the ability to do well in school is generally what we're talking about when we say things like "talent" or "merit". And the ability to do well in school is pretty well measured by IQ tests.
But is IQ really "merit"?
Wild aggression and physical violence used to be "merit". Religious devoutness used to be "merit". Having an illustrious bloodline used to be "merit". IQ is no better or worse.
All systems think of themselves as "meritocratic", it's just a matter of what they're optimizing for. To the degree that meritocracy gets at something real, it will by necessity fill the lower ranks of society with those who are low in whatever that characteristic is. And this will be in some cases unjust and counterproductive.
To structure society such that intelligence is privileged over every other human trait is to create a very dumb underclass, and to reduce the average intelligence of the working class as many of the smart kids are siphoned off to the middle classes. It also naturally creates a social division between those who meet the arbitrary and changing benchmarks for "education", and those who do not.
I think universities should be required to choose their student body by setting a SAT cutoff, and having a lottery among applicants who meet the minimum score. Completely blind, random selection. I also think that the university system should be radically smaller than it is, and no more than ten percent of HS graduates should attend. It should also be illegal to use academic information in hiring.
Two things are true:
1: IQ really does measure academic potential and should be used to cull the group trying to get into academia.
2: We overemphasize academics and could do a lot better socially in promoting definitions of merit that are not so limited.
I think meritocracy is a bad name for the concept, as it implies a particular system of organization. When really it's a metric you can apply to any system. And all systems are very much not the same in how meritocratic they are.
And this incongruous with the rest of your post, essentially "meritocracy isn't real, and it's bad that it's real". But yes, depriving lower classes of highly capable representatives is an inevitable consequence of meritocratic systems. I think that's a vastly preferable outcome to forcing these capable people into roles below their potential.
I think this is where the class/income distinction is important. We need highly intelligent lower-class people, because we need highly intelligent people running industries like resource extraction which will never be high class. A role being difficult doesn't make it classy, and a society that siphons off its best production plant operators and logging magnates to become ad-revenue optimizers and theoretical history researchers isn't on a good path long-term.
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