Les Jones

Economics > Economic Man vs. Status Man

Arnold Kling:

The drive for economic gain helps the individual, and, as Adam Smith famously showed, helps others. Trade and economic growth are positive-sum games, in which there can be winners without losers. Moreover, when people seek economic gains, this is usually transparent. You usually understand when you and others you transact with are trying to improve your economic well-being.

Status, on the other hand, is typically a zero-sum game, in which one person's gain comes at the expense of others. Adding to the evils of status-seeking is that people often deceive themselves and others into believing that they are doing something for a higher motive when in fact they are seeking status.

Understanding the ill effects of status-seeking could lead us to revise our views on some issues. For example, I believe that colleges and universities would be better off if academicians were more focused on monetary incentives. For the most part, the alternative is not the "higher calling" of science or knowledge for its own sake, but the baser motive of status-seeking.

I think that last statement is maybe a bit harsh, but academia is status-obsessed to a bizarre degree.

There's an old saying that the reason academic battles are so intense is because the stakes are so low. If Kling is right, it's not the size of the stakes but the kind of stakes. If the stakes were money it wouldn't be quite as big a deal, at least in some cases. You can always find money in other places. But status is a precious resource, and you have to shove the other guy out of the way to get yours.