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Ep. 255 The Economics of Discrimination

Bob Murphy Show

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The Politically Incorrect Guide to Capitalism

In a free market, freedom of association doesn't guarantee equitable outcomes but it has the incentives to try to get them as close as possible. So let me switch to this as an argument I made when it comes to hiring decisions. If you've got two applicants and you're advertising for a job that pays $100,000... You could have hired somebody whose productivity was $115,000 instead of someone who was productivity was $110,000. In a free market you're allowed to do that. And even if there's not like a public campaign against you, like if somehow people realize your hiring practices were biased, still there's an inbuilt automatic penalty. The Politically Incorrect

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