IN THE FIRST PART OF THIS BOOK, WE SAW THAT DISCRIMINATION occurs in many ways, shapes, and forms. Often, these forms of discrimination are ironic or even hypocritical.
Yet, many well-meaning people insist that the real problem associated with discrimination is in its economic effects. They bring forth reams of statistics and studies showing that whites are paid more than blacks, men earn more than women, tall people are paid more than short, and so forth. In light of such statistics, they argue, government needs to step in and “solve” the problem.
What such people fail to realize is that there are clear and distinct economic effects on firms that engage in discrimination. In effect, the free market punishes firms that routinely underpay particular classes of employees, thereby providing economic incentives to end such activity.
This section of the book includes four articles—two long and two short—that explain how the market weeds out certain forms of discrimination. Further, these articles will explain why other forms of discrimination should be welcomed. In addition, they will show why many government programs ostensibly designed to alleviate the problems simply make things worse.