Sunday, May 4, 2014

A Sterling Example of Don Boudreaux's Economic Insight

Cafe Hayek blogger Don Boudreaux posted a letter he sent to the Washington Times the topic of which is the power of competitive markets to essentially force positive, moral behavior from those whose personal views run contrary to their behavior.  The specific context in his letter is LA Clipper owner Donald Sterling's recent racist comments.  Here's the crux of Boudreaux's point:
Why does Mr. Sterling only talk the racist talk but not walk the racist walk?  The reason is market competition.  Were he to act like a racist in public – say, by employing only white players – his team would be worse on the court and worth less on the market.  Mr. Sterling can either make as much money as possible or he can indulge his racism, but the market prevents him from doing both.
Absolutely.  And a Sterling example of why Boudreaux is an OLS hero! And by the way, here's the link to the article in Boudreaux's post -- it too, is worth reading.