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Certain social policies are misguided attempts to ensure skin in the game.
Aristotle I think claimed that most vices correspond to the absence or perversion of some particular virtue. I reread Scott Alexander's review of Freddie deBoer's "The Cult of Smart" and it helped crystalize an observation that a certain kind of approaches to solving social ills is likely to be a perversion of the concept of having skin in the game.
Skin in the game is, basically, the idea that things tend to work out much better when people making decisions are also the people reaping the consequences than when they are not, because otherwise you get https://en.wikipedia.org/wiki/Principal–agent_problem and doctors doing lobotomies on the involuntarily committed and people forcing their politics on culturally different communities and the government spending taxes on catastrophically wasteful projects instead of letting people buy private services with their own money.
Now, Scott REALLY HATES public schools. Literally in CAPS LOCK. So it was kinda funny how he nodded sagely along with Freddie explaining how public schools don't really teach anything, commended his analysis that Montessori schools maybe aren't much better at teaching but at least they aren't DYSTOPIAN CHILD PRISONS, and so on and so forth, until the last part of the review where he COMPLETELY LOST HIS SHIT upon realizing that Freddie's solution is making everyone go to public schools and forbidding all alternatives.
(this was when Scott already mostly calmed down by the way)
But Freddie's approach actually makes total sense as an attempt to force people to have skin in the game. The society is largely controlled by the rich and affluent. As long as they can escape to charter schools, catholic schools, or hire private tutors, they will do that instead of using their wealth and affluence to fix public schools, so those being horrible will remain solely poor people's problem. If we close all alternatives then it becomes everyone's problem and everyone has to solve it.
You can also see this approach in what is currently happening with the US justice system. America has a huge prison population and high rates of recidivism, which maybe could be solved by adopting the Nordic model of rehabilitative justice. But it's hard, it's much easier to lock up recidivists for decades, so that's what the system had been doing until roughly 2018, when a coordinated campaign had elected a bunch of progressive DAs in all major cities, who simply refused to prosecute a lot of crimes. Now with the crime wave affecting everyone people have no choice but to take rehabilitative justice seriously.
Most of desegregation initiatives also had this component to them (in addition to tolerance through familiarity I guess). As long as black people live in their own ghettoes and send their children to their own schools, rich and affluent people by and large don't care what happens there. But if you have gangs selling drugs in your kid's school and a crack den next door, you'll have to care about and fix the problem, right? Right?
Of course all such approaches range from simply not working to greatly increasing the harm they were meant to prevent plus causing other catastrophic consequences. Here's some reasons why:
Just because you incentivized someone to solve a problem doesn't mean they will be able to figure how. Some problems are very hard and you have to try to solve them purposefully instead of setting up incentives and hoping for the best.
Unless you want to live in a North Korea (and can bring it on), it's really hard to incentivize wealthy people to solve problems like that. They'll look at it, admit that they have no idea what to do about it, shrug, and move to another place. So attempting to overmilk that cow will leave you without milk at all.
You are not incentivizing the actual rich and affluent people, you're incentivizing middle class, which is not affluent enough to solve much. Or more precisely, it's the actual rich and affluent people who are doing the incentivizing and they sure weren't busing their own children to mixed schools etc.
Affluent people who end up in charge of solving social ills are usually ideologically incapable of solving them. For example, a school that has problems with drugs and discipline should punish and eventually expel troublemakers, but that's precisely the kids the progressive school board cares about the most, so it would demand that the parents solve the problem with discipline without disciplining anyone, at which point the wealthy parents will shrug and move elsewhere.
Or regarding crime: let's be real, most criminals aren't Jean Valjeans stealing a loaf of bread to feed their younger siblings, they pick $1000 worth of Gucci bags and go do drugs and have fun because it sure beats working a week at Walmart, and that's the truth. If you tell them otherwise they will laugh you in the face. If you ask them to think about the poor Gucci shareholders they will laugh you in the face. The only way to fix them is to promise them a reasonably long stint in prison, at which point our prison abolitionist decides that Gucci shareholders deserve it and secretly gives up on rehabilitation.
Is it possible to force people to have skin in the game in a way that works? Yes, you have to make sure that you're forcing the right people and they can't wiggle out of it. So regarding prison reform again: first we go to the nearest KKK Grand Dragon and ask him if he's willing to pay $30k in taxes to have an innocent black man imprisoned for a year. Having thus established that the vast majority of the society doesn't have real incentives against rehabilitative justice, we greenlight anyone who wants to test their theories about how to rehabilitate criminals--more particularly, we ask the same George Soros fund that elected progressive DAs to bankroll and vet these initiatives, to make sure that the obvious grifters are excluded.
The most important part is that we also pass relatively strict laws against recidivism, say, doubling the term every time. This really incentivizes the anti-prison activists to do their best job trying to rehabilitate their charges. That doesn't mean that they will succeed--that any of them will meaningfully succeed--but they will try their best, and what more can we ask for?
This way instead of making the society hostage to criminals and hoping that someone figures out how to rehabilitate them, we take the criminals hostage and incentivize them and their rehabilitators to succeed.
The problem with this is that it assumes that problems have solutions. Easy mistake! But the strongest possible incentives have failed to stop aging, or find a way to increase IQ. No set of incentives will find a way to generate negative net entropy, or move faster than the speed of light. People can successfully build a bridge or fight a war, sure, but contemporary politics have solved most of these tractable problems.
First of all, that's literally the first point in my list of possible explanations for why forced skin in the games fails in my examples.
But also I want to point out an important thing: I'd want a stable legitimately non-working solution. As in, imagine one of the more inconvenient possible worlds where we have implemented my proposal for solving recidivism, everything appears to work as intended, George Soros makes sure that the people he funds really believe in the cause, those people report that they get nothing but enthusiastic cooperation from the prison staff, and they keep trying protocols devised by the best sociologists and they can't get recidivism rate below 70%.
That world is pretty unfortunate, but it has one very good property: whenever someone says "hey I think that you people are doing rehabilitative justice wrong, we should abolish prisons and replace it with mutual support communes, and for starters let all recidivists out on no bail" we tell him that there's currently three pilot mutual support communes, he's free to join any of them as staff and try to do rehabilitative justice right, but no, no way no how we are restarting any of those catch and release programs. If his ideas work, they work, yay, he solved an impossible problem, the criminals don't reoffend and are not affected by our harsh recidivism laws. If not, too bad, but at least the society is safe.
It's important that if the solution doesn't work the society can be reasonably sure that it's because the problem is very hard and not for the lack of trying.
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