No, Conservatives Are Not More "Economically Enlighted"
Conservatives are busy patting themselves on the back today over the results of a Zobgy survey hyped in this Wall Street Journal op-ed that purportedly shows that that liberals don't understand economics. Here's the author of the op-ed:
Who is better informed about the policy choices facing the country—liberals, conservatives or libertarians? According to a Zogby International survey that I write about in the May issue of Econ Journal Watch, the answer is unequivocal: The left flunks Econ 101.Not so fast. When you take a look at the survey, it's pretty easy to see why it got the results it did.
Conducted by email (which is never a good way to do things), the survey asked respondents 16 questions that supposedly measure their "economic enlightenment." Of those questions, the authors chose to analyze the responses to just eight. And if you look at those eight questions, it is readily apparent that a) many of them are confusing and don't have a clear right answer and b) they are specifically designed to trigger different responses from left-leaning and right-leaning respondents. Don't believe me? Let's look at the eight questions.
The survey asks you to agree or disagree with the following statement: "Third-world workers working for American companies overseas are being exploited." If you agree, you are deemed "unenlightened." But surely it's true that some third-world workers are being exploited. The statement doesn't say "all." This survey question is completely ambiguous and was undoubtedly interpreted in different ways by respondents. Moreover responses almost surely reflected the respondents attitudes toward large corporations in general, not their economic knowledge.
The survey also asks you to agree or disagree that "Free trade leads to unemployment." If you agreed, you were deemed "unenlightened." But free trade unquestionably does lead to lost jobs. While it may well lead to a net increase in jobs at a national level, the distribution of the gains and losses is uneven both geographically and by industry. If you're, say, a manufacturing worker based in the Midwest, agreeing with this statement is perfectly reasonable. Moreover, this is another issue that has clear partisan implications. Is a conservative respondent disagreeing with this statement because of his economic knowledge or because he heard Rush Limbaugh say something about how free trade is good? Who knows.
The same is true for this statement: "Minimum wage laws raise unemployment." If you disagree, you are deemed "unenlightened." But Nobel Prize winning economists disagree with this statement. The authors of the survey defend this question by suggesting that "the basic logic asked by the question is revealed by carrying it to a minimum wage of, say, $20. Unemployment would go up a lot." But that's not at all what the statement says. Just because some minimum wage laws (i.e. crazy ones) would raise unemployment doesn't mean that all would or, more importantly, that the current minimum wage laws do. Responses to this question are purely a product of policy differences, not economic knowledge.
One of the more bizarre questions asks the respondent to agree or disagree that "Overall, the standard of living is higher today than it was 30 years ago." If you disagree, you are "unenlightened." That's not an economic question. It's an empirical question. And responses to it are as likely to reflect differences in respondents' personal circumstances and general optimism/pessimism about the direction of the country as any "knowledge." Moreover, there are a number of ways in which the standard of living has not improved over the last 30 years. Wages, adjusted for inflation, have largely been stagnant during the last 30 years for all but the most wealthy. Moreover, living on just one salary is increasingly untenable, so far more families today have to rely on dual income earners. It's perfectly reasonable for someone to look back on an era in which that was not generally the case and think that the standard of living was higher then.
The remaining four questions are less egregious but have similar deficiencies.
- Restrictions on housing development make housing less affordable. (unenlightened answer: disagree)
- Mandatory licensing of professional services increases the prices of those
services. (unenlightened answer: disagree) - Rent control leads to housing shortages. (unenlightened answer: disagree)
- A company with the largest market share is a monopoly. (unenlightened answer: agree)
Though these questions are closer to having objectively correct answers, they are still somewhat ambiguous and confusing. Moreover, all are designed to capitalize on existing left/right fault-lines. Conservatives, who tend to be reflexively hostile to all government action, are much more likely to reflexively get the "right" answers, even if economic knowledge had nothing to do with their thought process.
Given five minutes, I guarantee you I could design a survey that "proved" the exact opposite, that liberals are far more economically enlightened than conservatives. I'd include questions like this:
- Agree/Disagree: Cutting taxes raises government revenue (unenlightened answer: agree!)
- Agree/Disagree: Government spending during a recession can serve to stimulate the economy (unenlightened answer: disagree)
I'm sure that if I do this, the Wall Street Journal will give me a platform to opine about how ignorant conservatives are about economics.