The Tradeoff

The Tradeoff

There is a governing principle in economics called the “Equality-Efficiency Tradeoff.” It basically states that a society’s efforts to make the incomes of its citizens more equal, will inherit the adverse affects of a decrease in efficiency (or productivity) from those citizens. Why would a society need to make an effort to make the incomes of its citizens more equal? Well, because they are unequal (or inequal) to begin with, of course. Why are they unequal? That is a great place to begin our discussion.

In a predominantly free-market capitalistic economic system, such as the United States has, the major reason incomes are unequal is that this system rewards its citizens based on their abilities. The pre-amble to our Constitution states that “all men are created equal”, but equal does not mean same. We all have different abilities; things we do well, and things we don’t do so well. Our society rewards its citizens based on the satisfaction that buyers receive (economist call this “utility”) when they pay to enjoy our abilities.

Allow me a personal illustration. Let me tell you about two people that I admire. The first is my wife. Kelly works for an organization called “Pre-School Partners”, affectionately referred to as PSP. It’s a non-profit organization that targets 3 and 4 year old children from inner-city Birmingham. Many of these kids are from low-income, single parent homes, and this program is designed to prepare them for kindergarten. The program is extremely affordable, yet the parents are required to take classes also, in things like time management, anger management, and money management. Sound like a program that is making a positive impact on the demographic it was intended to serve? Statistics say so. Five years after leaving the program, PSP kids have higher grades and better attendance records than their counterparts who did not complete the program. Do you think Kelly’s work makes a valuable contribution to society? I think so.

The second person I’ll tell you about is a guy named Peyton Manning. You may have heard of him. He’s won the NFL’s Most Valuable Player Award an unprecedented four times. His last contract to play the game of football was reportedly in the neighborhood of $69 million over 3 years. Let me pause here to say that Kelly makes significantly less than that. Why? Is it because her contributions to the well being and functionality of our society are significantly less than Peyton’s? No. It’s because no one has ever lined up to pay $150 each to watch Kelly teach letters and numbers.

Now we can argue that society should value its teachers (and police officers, and paramedics, and firefighters, and so on) over its athletes, but do we? I once heard someone say, “You show me your calendar and your bank statement, and I’ll show you what’s important to you.” The things we spend time and money on are the things that are truly important to us. And our society values entertainment. Many people are willing to pay their hard earned money to watch Peyton execute his abilities, where they are not willing to do so for Kelly’s.

Is this fair? I have three thoughts in response to this question.

First, life is not fair. Anyone who tells you otherwise is selling something. We are imperfect people, living in an imperfect world, and because of that, life will never be perfect.

Second, and this is the principle most fail to comprehend, Peyton’s ability to make $23 million a year, doesn’t decrease Kelly’s opportunity to make that much. Wealth is not like a great big pie that, when divided, means that if you get a bigger slice, I, by definition, get a smaller one. Wealth creates more wealth. Peyton making big money means that someone has to build a big stadium for him to play in, and someone has to make jerseys with his name and number on them (for him and thousands of fans), and someone has to make hot dogs that sell for $15 at that stadium on the days he’s wearing that jersey, and executing his abilities.

Third, and lastly, I would ask anyone who asks “Is this system fair?” to explain to me another system that has historically set a precedent for greater fairness.

Now, if we have a system that creates so much inequality, (and we do) and we begin to value equality (which we have), what steps could we take to ensure more income equality? Two things could accomplish this; a progressive tax structure and transfer payments.

A progressive tax is taxing a higher fraction of a higher income. A progressive tax bracket structure takes more money away from rich people, which by definition makes them poorer. Transfer payments then take some of that money and give it to poorer people (in the form of Social Security, and food stamps, and earned income tax credits), which by definition makes them richer. That’s how you bring about greater income equality.

There is a negative unintended side affect to these practices is that it gives both groups less incentive to be productive. In fact, it gives both groups more incentive to be less productive; less efficient. As a rich person, why would you work hard to make more, if the reward would be that more would be taken? As a poor person, why would you work hard to make more, if the reward would be that less would be given? (Incidentally, if you do not believe that most people are driven by individual ambition and incentive, I would love for you to introduce to me these angels among us.)

Allow me a second personal illustration. I was born with the condition cerebral palsy, commonly known as CP. It’s a little like a short circuit in the wiring between my brain and muscles. CP has severely affected my balance and coordination , and I use an electric wheelchair for mobility. Simple things like getting dressed, or loading into a vehicle, or picking up a pen I’ve dropped, are challenging at best. According the laws of our land, I am fully qualified to receive a Supplemental Security Income (SSI) check (commonly known as disability) from the federal government each month.

However, at some point I decided that I wanted more out of life. In high school I studied and made good grades and did well on the ACT. I earned scholarships to college, and studied, and made good grades. I am now a gainfully employed, productive, tax-paying member of society. I teach economics at a college.

One day, during a break between semesters, I decided to go fishing. While fishing off the dock, I noticed a car pull into the parking lot. The driver, a guy who appeared to be about my age, hopped out of the car and seemed to have no trouble carrying a large bag of charcoal. He made another trip from his car to the picnic table, this time carrying coolers and other odds and ends. On his third trip, he gathered his tackle box and rod and reels, and headed my way.

We chatted for awhile, while we fished, as fisherman often do. During the course of our conversation I asked, “What do you do?” He said, “Oh, I, uh…draw a disability check.” Now I’m as friendly as the next guy, and we continued to talk and fish for quite some time.

But sometime later I realized something. Every day the alarm goes off, I struggle with the challenge to get out of bed. I struggle with the challenge of getting dressed. I struggle with the challenge of getting into my vehicle, sometimes with the added challenge of buckling my children into their car-seats when I’m in charge of day care. On the job, I work to adequately perform the required duties of my position.

And I do all of this so that (among other things), on occasion I may enjoy some leisure time – like fishing. I also realized that, meanwhile I am receiving another reward for my diligence, good choices, and hard work. I get to pay taxes! And some of those taxes go to pay the disability check of my fishing buddy!

Now let me ask you a question: If someone had explained to me during my formative years that this is the way things would be, do you think it would have provided me any incentive to press forward? Do you think, if someone had told me that this is the way the world works, that I would have been more motivated to set goals or try to achieve more in life? I don’t. In fact, I might have been persuaded to take advantage of the hand-outs being offered. It would have certainly been easier.

This is the “Equality-Efficiency Tradeoff.” And it gives both groups less incentive. It gives “rich people” less incentive, for they know the more they work, the more will be taken. It gives “poor people” less incentive, for they know the less they work, the more will be given.

In 1990, in his book “Free to Choose”, Milton Friedman said, “A society that puts equality before freedom will get neither.” It seems that twenty years later, we still haven’t heeded this warning.

Matt's Mouse

The Amazing Kelly may deserve the "Wife of the Year" award for Christmas 2011 when she bought me a crossbow.  I had been talking about buying one for some time, but never had pulled the trigger, pardon the pun. Having a disability, it just seemed a good way for me to extend deer season beyond gun hunting. Kelly knew that there was an opportunity for me to hunt coming up at a “bow only” area, and she actually surprised me before Christmas Day with this great gift.

My first opportunity to try my skills with my new toy, was with my friend Matt at a hunting club he belongs to in south Georgia called “The Paradise”. I'll pause here to make very clear that the name does not refer to the human accommodations. It's called “The Paradise” because it is hog heaven. It is swampy, nasty, muddy, over-grown...wait, was I describing where the hogs or people sleep?

The camp, maybe I should put that in quotations, is really a couple of storage buildings on the slab of an old house-place, surrounded by abandoned trailers demolished by weather and left by previous hunters at the club. One of the storage buildings is larger and set up a bit like a bunk house. The other is considerably smaller and is Matt's “private residence”. There is electricity in the storage buildings, but no running water inside. In fact, going to the bathroom in the middle of the night involves shoes and a flashlight!

I'll take a minute here to tell you that my hunting buddy Matt is a manly man. He's more or less a confirmed bachelor. His best friend is what most of us consider to be the ugliest dog on the planet, a German Wirehaired Pointer named Montana. He has a real job, but he could easily live off the land if need be. Matt grows his own vegetables, and hunts and fishes for meat. By the way, when he's hunting, virtually everything that moves, he does so with bow and arrow he made himself. And when it comes to “The Paradise”, he loves the place.

After the first day of the hunt, we ate a big supper and sat around the campfire and chatted until it was time for bed. (Morning comes early when you're at “The Paradise”.) Matt helped me settle in at the bunk house, said goodnight, and then headed to his cabin about fifty yards away. I sat down on the bunk and was about to pull my boots off when, you guessed it, a mouse ran out from under my bed, along the base of the wall and underneath the bunk on the other side of the room.

Now, to be clear, this was not like a sewer rat the size of a small dog or anything. It was just a field mouse. And, while the amenities at “The Paradise” are a long way from “The Four Seasons”, or a Motel 6 for that matter, the place didn't appear to be over-run with the furry critters. So I decided the best course of action was just to steel my nerves and deal with it, for two main reasons. First of all, it was just a mouse, right?And what is a mouse but a squirrel with no fluffy tail and a PR problem. Squirrels don't bother me. I was literally surrounded by dozens of them while I was hunting. Secondly, I decided that if I was gonna go hunting with manly man Matt, a mouse in the bunk house was just, well, part of it.

So I decided I would be a manly man too. I mean, when I told people I was going wild hog hunting down in south Georgia with my crossbow, I felt manly. When I sat around the campfire and drank black coffee and told of the adventures of past hunts, I felt manly. When I sat out in the rain in my camouflage and waited for a wild animal to come within spitting distance to harvest and provide meat for my family, I felt manly. But, ya'll, when that mouse came back out in full view and ran underneath the bed I was sitting on...I was done being manly!

I got on my crutches, walked outside and, according to Matt, screamed like a little girl. In my defense, Matt was in his cabin 50 yards away sleeping with earplugs and a snoring dog. I was just trying to get his attention. After a few minutes, I saw a light come on, and a few minutes later, he was walking up the steps to the bunkhouse. “You rang?,” he said, grinning sheepishly. I said,”Hey, brother. You can make fun of me all you want to, but I'm not gonna be able to sleep with your little friend in there.”

And he did. He made fun of me quite a bit. He called me some names that I'll not repeat in a Christian devotional book. Some were clever, some were funny, some were well...true. He gave me a good ribbing, all in good fun.

And then do you know what he did? He traded places with me! He packed up all my stuff, my sleeping bag and everything and moved me to his private cabin. And, knowing Montana would be up all night with a stranger in the room, Matt moved to the bunkhouse. Now Matt's place was no Ritz Carlton, but there were no signs of mice, and I spent the next two nights in relative peace, quiet and comfort.

I know it's not a perfect allegory, but it does give us just a little glimpse into what Jesus did for us. What was that? Well, He traded places with us. That should have been us on that cross. All of the pain, suffering, torture and humiliation should have been poured out on us for our sins. 1 John 2:2 tells us, “(Jesus) is the atoning sacrifice for our sins, and not only for ours but also for the sins of the whole world.”

Did Matt make fun of me because I'm not as manly as he is? You bet. Will God make fun of us because we are not righteous and holy as He is? No, but it is on that premise that we will be judged. But never fear. If you have accepted the precious gift of Christ's atoning sacrifice, then God will declare the debt of your sin paid in full. How should we respond to a love like that? James 2:12-13 tells us, “Speak and act as those who are going to be judged by the law that gives freedom, because judgment without mercy will be shown to anyone who has not been merciful. Mercy triumphs over judgment!”

And after we pass from death unto life, God gives us a mansion with Him in Heaven...with no mice.

Tremors

I realize that for those who know me, and know that I have a condition called cerebral palsy, the title of this post might be a bit misleading.  You might think that because my cerebral palsy causes spasticity, that the title might be referring to the trembling that occurs in my muscles from time to time.  No, the title is from the movie "Tremors". Raise your hand if you’ve seen the movie “Tremors”. This movie is what some would call a “cult classic”. (That is not to say that this movie is of the occult.) A “cult classic” is, in my opinion, a lesser known movie whose fans are truly fanatical. They’ve seen the movie dozens upon dozens of times, can quote from memory entire dialogue sequences, and probably have dressed up at least once on Halloween as one of its characters.

Such is the case with “Tremors”. It’s a low budget flick about, stay with me here, people in a small isolated town defending themselves against underground alien monsters. It stars, and I use that term loosely, Fred Ward and a young Kevin Bacon. Let me end all debate and controversy here by stating, “I love this movie!”

Allow me here a little stroll down amnesia lane to explain how this little movie came to reside permanently in the top 20 of my “all time favorites” list. I grew up in a very rural area. Some people might even call it the boonies. To say that cable television was slow in coming to our community (and I use that term loosely as well) would be an understatement. (Maybe they didn’t have enough line to run out that far. I don’t know.) We didn’t go to movies as a family when I was growing up. (You'll have to ask Big Bill and Momma Fay about that.) But I developed a friendship with the new kid in school my eighth grade year named Jeremy. And Jeremy had two VCRs.

Now, if it weren't prohibited under federal law, Jeremy might have made copies of movies he rented. And if he had made copies he might have loaned them out to his friends. And if he had made and loaned, one of the movies might have been “Tremors”. And if Tremors were one of those movies, he might have made me a copy, and my brother and I might have watched it. And being starved for entertainment such as we were in rural Mississippi in the summertime with no cable or satellite TV, we might have watched it about a hundred times.

In one scene from the movie, Fred Ward and Kevin Bacon's characters find themselves on top of a large boulder surrounded by these underground alien monsters. The monsters can't penetrate the rock, so our heroes are safe for the moment, but as time goes on, they realize they will die of thirst or hunger before the monsters simply leave of their own accord. The conversation on top of the boulder goes something like this:

Fred: “What we need is a plan.”

Kevin: “I say we just run for it!”

Fred: “Running's not a plan. Running is what you do when a plan fails!”

May I ask you a question? Are you planning to go to church this Sunday? If so, do you have a …plan? Or are you just running? How many of us put as much energy and effort into getting our kids and ourselves ready to go to His house on His day as we do into getting to work and school on time on Monday? Do you set an alarm? Did you gas up the day before so you won't have to stop on the way? Will you leave 15 minutes early...just in case. 

 

I think, for many of us, one of our problems is that we think getting to church on time will just happen. We think that since we don't have to be at church as early as we do work and school, there'll be plenty of time to get everything done. This just isn't true. I don't know about your house, but our house can be anything but peaceful on a Sunday morning. And the Devil will jump on you with both feet to give you any excuse not to go to worship. Or, better yet, he'll make you so frazzled by the time you get there, that you're not able to worship. 

 

Hebrews 10:24-27 reads, “And let us consider how we may spur one another on toward love and good deeds. Let us not give up meeting together, as some are in the habit of doing, but let us encourage one another—and all the more as you see the Day approaching. If we deliberately keep on sinning after we have received the knowledge of the truth, no sacrifice for sins is left, but only a fearful expectation of judgment and of raging fire that will consume the enemies of God”(emphasis added). 

 

Now, hear me out. I, for the most part, am not naturally bent toward legalism. I don't think it is necessarily a sin to miss church once in awhile. In fact, I think there are some legitimate reasons for missing church. On the other hand, I've heard people say, “God doesn't call roll on Sunday mornings.” Well, that might be, but I also don't believe we should abuse the precious gifts of grace and mercy that He so generously bestows upon us.

So, what to make of this thing we call “going to church”? Do we attend regularly? Is attending half of the time to be considered “regular”? Is being fifteen to twenty minutes late when we do attend really giving our best in an effort to serve a risen Savior? How do we attempt to correct these issues? Well, we must have a plan! Why? Because, “Proper planning prevents potential problems and poor performance.”

Will there be Sundays that are absolutely crazy at your house? Sure. Will there be times when everything that can go wrong on Sunday mornings will indeed go wrong? You bet. Are there going to be times where “the best laid plans” have indeed gone awry, and the only option you have left is just to run? Of course. But remember: Running's not a plan! Running is what you do when a plan fails!