Ed Glaeser on the Economics of Paternalism

Poverty Beliefs

The discussion highlights the stark differences in beliefs about poverty between the US and Europe. Edward Glaeser notes that 60% of Americans perceive the poor as lazy, whereas only 26% of Europeans share this view. Conversely, 60% of Europeans believe the poor are trapped in poverty, compared to 29% of Americans 1. This divergence is attributed to educational indoctrination, with American schools promoting the idea of a land of opportunity, while European education often emphasizes class barriers 1.

The prevailing message of American schools to this day is that we live in a land of opportunity that by working hard you can rise.

--- Edward Glaeser

These beliefs, however, do not necessarily align with economic realities, as Europeans are slightly more likely to escape poverty than Americans 1.

   

Perceptions of Control

Societal perceptions significantly impact individuals' sense of control over their lives. Edward Glaeser argues that political and policy environments are shaped by incentivized suppliers who influence public beliefs, often leading to errors in policy-making 2. Russ Roberts adds that this influence extends to soft paternalism, where government intervention can crowd out private efforts and social norms 3.

One of the costs of even accepting these so-called good examples of soft paternalism is it crowds out private paternalism.

--- Russ Roberts

The conversation suggests that solutions to issues like obesity are more likely to emerge from private markets rather than government interventions 3.