Saturday, November 27, 2021

Are Americans losing their identity as Americans

Vijay K. Mathur




For more than a few decades, economics has branched out beyond the inclusion of traditional economic areas of investigation, such as crime, fertility, marriage and suicide. Following that tradition, George Akerlof, Nobel laureate in economics, and Rachel Kranton have investigated the role of identity in decision-making in their book “Identity Economics.” Their focus on identity implies how people think of themselves and others, how society and its norm affect their motives and behavior. They argue that” identities and norms derive from the social setting.”

 Identities have economic consequences for people and the economy since they affect motives, behavior and decisions toward work, fair treatment of others, sense of responsibility, saving and investments, and even vaccination for contagious diseases to protect themselves and others. Americans among different subidentity groups do believe in the core value of freedom and liberty. However, among many, this value seems to be forgotten when others’ freedom is concerned. John Lock (1632-1704), a British philosopher, believed that “when one voluntarily joins a community, he/she inherently consents to the forfeiture of some freedom.” (John Locke Foundation, Oct. 31, 2017).

 

Our identity as Americans must supersede our secondary identities, such as white, Black, Asian, conservative, liberal, Catholic, Protestant or Muslim. All, as Americans, have to work, make decisions and take actions for the common good of the country. The divisiveness in the country, along political party lines, political ideology, region, religion, race, country of origin, not believing in the same set of facts, not trusting other Americans and the political leadership, and even hostility against others’ points of view, is undermining our identity as Americans; it also creates an environment for adverse political, socioeconomic consequences.

 

Peggy Noonan opined in the Wall Street Journal (Sept. 18-19, 2021) that, “It had to do with a sense that we are losing the thread, that America is losing the thread.” The uniting common thread is that we are all Americans, and as Americans we must strive for the common good that promotes political stability and an economically healthy economy. For example, if all Americans do their part to eliminate the pandemic of COVID-19 and its variants, all Americans will benefit from the increase in economic activity and growth.

 

Pew Research (Feb. 19, 2020) found in a survey that only 34% have trust and confidence in the wisdom of American people in making political decisions and 59% do not. This attitude filters down from the political leadership at all levels of government. The Center for Economic Progress (May 26, 2021) reports, “Talk of national unity is seen as an illusionary goal as various factions press their ideological agendas on government.” Even leaders in Congress and the states emphasize ideological agendas to win favors from their ideological groups, rather than working on an American agenda that benefits all Americans. Antagonistic effects of divisiveness have even reached medical professions, school boards and the media.


The divisiveness prevailing in the country is astounding, even though surveys of adult Americans at Grinnell College (www.grinnell.edu) on Dec. 3, 2018, and March 3, 2021, reveal that Americans still believe in certain core values that unite us. Almost 70% to 90% of adult Americans surveyed in the poll believe in core values such as treating others with respect; belief in responsibility; acceptance of different races, backgrounds and religious affiliations; free and fair elections; and peaceful transfer of power. However, the survey in 2018 revealed a disturbingly un-American and unconstitutional view. Close to 25% believe that real Americans are those who are born in the country or have lived here for a long time and are Christians. The same poll also found that “hate of a person, group or organization is becoming more normalized.” President Trump and most of his followers highlighted this extreme animosity and divisiveness toward others.

 

Our identity as Americans affects our behavior toward others and our sense of cooperation for the common good, political stability and national prosperity. Divisiveness threatens democracy, as implied in the Grinnell surveys, and hence the economic well-being of all freedom-loving Americans. I earnestly hope that most Americans remember the core values that bind us as Americans and work toward a more perfect union. Losing our identity as Americans could be damaging domestically and internationally. As President Joe Biden stated, “Our future cannot depend on the government alone. The ultimate solutions lie in attitudes and the actions of the American people.”

 

Mathur is former chairman and professor in the Economics Department and now Professor Emeritus at Cleveland State University, Cleveland, Ohio. He resides in Ogden. Published in the Standard Examiner,October, 21, 2021.

It is time for the unvaccinated to be incentivized and nudged

Vijay K. Mathur




Despite the emergence of the more contagious and lethal delta variant of the COVID-19 virus, many stubborn people in the U.S. and Utah are guided by their own selfish view of freedom of choice to remain unvaccinated. As I mentioned in my commentary on this issue in the Standard-Examiner on July 20, this behavior does not fit the usual assumption of rationality that requires deliberate, consistent and logical behavior.

 In that opinion piece, I outlined some of the explanations provided by professor Richard Thaler in his book “Misbehaving.” Peoples’ decisions are influenced by others who are close to them and by those who influence their identities, the opportunity cost of their decisions, the cognitive intelligence to decipher factual information from misinformation, the effect of leaders they trust, as well as some other psychological factors discussed by professor Daniel Kahneman in his book “Thinking Fast and Slow.”

 

Perhaps unvaccinated people have not yet reached the tipping point. Some of them might do so if someone in their family becomes very sick or dies, or a neighbor whom they trust becomes seriously ill. Malcolm Gladwell argues in “Tipping Point” that all epidemics have tipping points. In the case of the delta variant virus and the probability of development of other, more complex and virulent variants, the country’s health care system and the economy as a whole are facing perilous times. Therefore, it is in the national interest to convince a significant proportion of Americans to get vaccinated for the virus in order to develop herd immunity.

 

However, even a substantial increase in infections and more deaths of young and old have not persuaded 52.8% of the population of Utah to get fully vaccinated (Becker’s Hospital Review, Aug. 30). Based upon CDC tracker data for Aug. 9, Becker’s Hospital Review also reports that 47.7% of the U.S. population is not fully vaccinated. This data reveals that we are facing desperate times now and perhaps in the future.

 

Choice research shows that most people systematically make wrong choices that are not in their best interest. They have what Thaler and Cass Sunstein call “status quo bias” in their book “Nudge.” It is time to nudge naysayers who are still zealous defenders of maintaining their freedom of choice and liberty, even though their freedom of choice impinges upon others’ freedom of choice of good health and freedom from illness. John Locke (1632-1704) an English philosopher and ardent supporter of freedom and liberty as natural rights, argued for equality in freedom and liberty and doing no harm to others. He also argued that some freedoms are lost as part of the social contract with governments responsible for providing security and services.

 

In any event, nudging is a default mechanism. Thaler and Sunstein state that nudging influences choices that will make people better off “as judged by themselves.” Nudging is not a mandate. It retains and even expands freedom of choice. People also respond to incentives, as when people were offered monetary rewards for vaccination. Cleveland-Cliffs Inc. incentivized its workers to get vaccinated by offering a bonus of at least $1,500. It saved costs due to fewer turnovers. Even the federal government is providing incentives. Some unvaccinated people, who are procrastinating, may respond and find time to get the vaccination. Incentives and nudges are effective persuasion mechanisms.

 

A good example of nudging and incentives was reported in The New York Times (Aug. 27). Starting Nov. 1, workers at Delta Air Lines could choose to remain unvaccinated but have to agree to: 1) wear masks indoors, 2) get tested weekly, 3) lose protection of wages lost while quarantining and 4) pay $200 more per month for health insurance. This keeps workers’ freedom of choice to remain unvaccinated. They do not lose their jobs. Goldman Sachs requires vaccination status from its employees only as a nudging device.

 

Other examples that keep the freedom of choice of being unvaccinated are the proof of vaccination required by some universities, restaurants and hotels. Many hospitals are now charging more to unvaccinated people even when they are insured. People who want the freedom to remain unvaccinated do not have to choose those universities, restaurants and hotels and should be willing to pay for their freedom when it harms others of life, liberty and the pursuit of happiness.

 

Mathur is a former chairman and professor in the Economics Department at Cleveland State University, Cleveland, Ohio. He resides in Ogden.