Tuesday, May 04, 2010

Why Do So Many Policies Fail?

In my reading of applied economics and applied science, one of the things that comes through to me is the fact that most people have confidence in ideas that are not very well considered. This can be demonstrated in the number of business ideas and policy ideas that are wrong-headed but which have enthusiastic support and popularity. I am particularly reminded of the need for modesty in designing public policy by this article by David Brooks in the NYT today.  As expected of David Brooks, he is skeptical of most claims that differences in outcomes between people can find resolution through public policy, however considered.

Citing the interesting cases in the same outcomes among the Swedish immigrants in the US and the rest of the Swedish nation, David comes to the predictable conclusion that culture matters more than many acknowledge. His unstated view is that environment does not matter much and government cannot create success for laggards.

This is especially interesting because I think that David Brooks makes a point that is worthy of more careful review than he admits. To my mind, it is also worth noting that while the Asian American community in the US is made up of achievers, it is notable that there is no equalization in the poverty levels between the large Indian diaspora in the US and those at home. I suspect therefore that the US citizens of Swedish origin make for a biased sample on account of the fact that they arrived under different circumstances and conditions. My explanation for the record of failure of most policy is that the advocates tend to have a vicarious interest that leads to blinkers regarding its obvious failures. It is just proof of human fallibility and brashness.

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