Sowell..I came to reject Marxism when I was studying affirmative action programmes for black entrepreneurs.
Commentator: HOw is that?? Sowell..Well this black business owner benefitted from special loan rates and other govt. incentives. However, he still had to pay a minimum wage. He complained that these minimum wages were causing his profit to decline to where he would soon be bankrupt and that he needed an increase in loan rebates and other incentives.. Competitors claimed that the decline in his business was the result of his products being inferior. Commentator: Well what has this to do with Marx? Sowell. Well when I suggested that we do an empirical study to find out that if it was the inferiority of his proudcts that actually was causing the decline in his business profts or the minimum wage requirements he rejected this outright. He insisted that it was the level of incentives and government subsidies combined with the minimum wage requirements. Commentator : So how does this relate to Marx? Sowell. Well isnt it obvious. This guy has an incentive to explain things as lack of govt subsidies since he is dependent upon these affirmative action programme and the complaint about minimum wages is an excuse for more subsidies.. He wasnt interested in empirical truth or in finding which explanation was correct. Now Marx thought that it was the goal that was important but I now understood that Marx was wrong it is the incentives that are most important in understanding this black businessman's answer not his goal. Commentator. But wouldnt Marx say that the goal is maximising profit and since this man's profits are dependent upon govt. subsidies then this goal provides him with the incentive to explain his lack of profits a priori by suggesting that they are not large enough in the light of his being required to pay minimum wages? Sowell..Sorry. Im out of time. I have some hack wrirting to do for some guy named Shemano.
