The Causes of Poverty (72): How Unemployment and the Incentive Theory Aggravate Poverty

Not all poor people are unemployed. Even in developed countries some of the poor are “working poor“, i.e. people who have an income that is below the poverty line. Hence, if some who work for a living can’t make ends meet, it’s obvious that the unemployed are even more at risk of being poor. At best, the latter only have a temporary replacement income in the form of unemployment benefits. This income is often lower than even the lowest wage income, and in most countries it’s also limited in time. Hence, poverty is the likely result of unemployment, even in wealthy countries.

To some extent, this result is intentional: governments want to “incentivize” people and “nudge” them into the labor market. High unemployment benefits that aren’t limited in time – combined with the fact that many jobs don’t pay enough to avoid poverty – may trap some people in unemployment. Low and limited unemployment benefits, on the other hand, invoke the horror of poverty which in turn may force people to look for work.

It’s obvious why many unemployed people are poor – their incomes are just too low, and intentionally so. But why are poor people unemployed? The incentive theory tells us that poor people shouldn’t be unemployed. The horror of poverty should drive them out of unemployment. While some people are probably “incentivized” in this way, this is not something that will work for all the unemployed poor. It will only work for all the unemployed poor if jobs are abundant, and indeed that’s what the incentive theory assumes. Of course, this assumption is wrong. There’s something called the natural rate of unemployment. Even in the best of economic circumstances, there’s always some level of involuntary unemployment, and during recessions, this level is higher than normal. During a recession (starting from 2008 in this case) more poor people than normal indicate that their unemployment is due to their “inability to find a job”.

So, there are no conceivable incentives that will push all unemployed poor into the workforce, not even at the best of times.

Notice how the inability to find a job is just one reason among many, and definitely not the most important reason why poor people don’t work. Choice (“home or family reasons”) is another reason. And that’s one which can sometimes be influenced by incentives. However, the reason that’s cited most frequently, namely “sickness or disability” cannot. The horror of poverty will not force you into employment if you can’t work for health reasons. Hence, even if we assume, unrealistically, that there is an abundance of jobs and no natural rate of unemployment, it’s unrealistic to assume that all poor unemployed people will one day join the workforce.

This has implications for the incentive theory. If you put too much emphasis on incentives, you’re likely to put unemployment benefits at a very low level with a strict time limit. After all, the closer the horizon of poverty, the more likely that people will act and look for a job. However, if there are not enough jobs or if people have other reasons why they won’t work, then they won’t work. And if unemployment benefits are stingy, then these people will become poor. Incentives don’t always work as intended. Sometimes they may even cause poverty.

Now, I do agree that work is important and that we should therefore try to get as many people in jobs as we can (and, by the way, improve the quality of those jobs; that’s also in the book). Not only because working people normally – although not always – are less at risk of being poor, but also because work is important in human flourishing. I also agree that incentives can play a role in getting people to find work, and that the specter of poverty can be used as an incentive. However, we should be careful with this particular incentive. It may work sometimes, but often it doesn’t.

More posts in this series are here.

Economic Human Rights (37): Basic Income as an Alternative to the Welfare State

The welfare state is the name for a collection of different government policies and programs designed to help the poor. Those policies and programs may include healthcare benefits, unemployment benefits, old age pensions, child benefits, some types of education subsidies, aid to the disabled, food stamps, housing subsidies, minimum wage rules, collective bargaining rights etc.

The welfare state is criticized in a number of ways. I’ll just mention a few arguments against it, without going into much detail and without replying to them:

  • it creates dependency and destroys self-reliance, responsibility, effort and other virtues
  • it rewards the undeserving and promotes subsidized idleness
  • it violates property rights because the taxes necessary for funding welfare are a form of theft
  • it imposes slavery on the productive and the responsible because it forces them to work for the benefit of the lazy and the irresponsible
  • it destroys incentives for taxpayers to become productive
  • it’s self-destructive because it destroys the prosperity that it wants to redistribute (the destruction of incentives results in the destruction of prosperity), or because it renders poverty more attractive
  • it’s not sufficiently targeted to the most needy: wealthy families may get child benefits, and wealthy pensioners may get healthcare subsidies
  • it requires a heavy state bureaucracy that usurps the right to invade the privacy of potential welfare beneficiaries (in order to ascertain whether people deserve benefits: are people really unemployed or unemployable? does their health status merit health benefits? etc.)
  • it can be gamed and people may engage in welfare fraud.

Some of these criticisms are evidently more pertinent than others, but let’s not evaluate them one by one. If we assume that there’s some truth in some of them, then it may be worthwhile to look at some possible alternatives. People often propose non-state solutions such as private charity (enhanced and encouraged by way of tax policy, education etc.). An advantage of private charity is that it fosters solidarity, virtue and a sense of belonging. However, it’s also counter-cyclical in the sense that it’s least available when most necessary (e.g. during economic recessions). Moreover, it tends to be unreliable and unequal (it may not cover all the needs of all poor people all of the time).

Another possible alternative is to keep a system of state provision of welfare, but to radically alter the specifics of the system. For example, one could give people a guaranteed and unconditional basic income at a level high enough to cover basic needs. Every individual would receive the basic income whatever his or her predicament, current or future. It would be funded with tax revenues, and therefore wouldn’t be a reply to the theft and slavery criticisms of welfare, but those criticisms are weak anyway (because they imply that all state activity, including policing and infrastructure, are illegitimate). It would, however, be a strong reply to the privacy infringing aspects of the current welfare system. A basic income, since it’s unconditional, would not require intrusions into the private lives of citizens in order to ascertain whether they deserve a benefit or not. It would undo the complexity of many current programs and hence also remove the need for a large bureaucracy. And it would counter the charge of assisting the undeserving: although many undeserving would receive a basic income, few would complain about it since everyone would receive it. Welfare fraud also would obviously become impossible.

An added advantage of a basic income system of welfare would be that it allows people to take more risks. They know that they won’t be destitute if things don’t work out. More risk taking can be socially advantageous because it can result in more innovation, more productivity etc.

However, notwithstanding the set of advantages, a basic income system will probably not be a perfect substitute for existing programs. It’s questionable, for example, whether a basic income, even one that is set at the highest sustainable level, will be enough to cover certain catastrophic healthcare costs. In general, a basic income theory doesn’t take into consideration the fact that different people have different needs and abilities and therefore require different amounts of resources.

The Causes of Poverty (43): The Welfare State

Yes, that’s right: the welfare state… According to many conservatives, the welfare state is self-defeating and actually makes people poorer. Welfare and social security (and perhaps even private charity) unwittingly work to thwart their own goal – helping the poor – in two different ways. There’s supposed to be a supply side and a demand side to the so-called “perverse effects” of anti-poverty policies.

Take the supply side first. The delivery of welfare by the government and – indirectly – by the taxpayers is economically inefficient. It burdens the primary suppliers of the necessary funds, namely the individual and corporate taxpayers. Because of this burden, companies and individuals lose the incentive to be productive. If they have to pay large amounts in taxes in order to fund the welfare state, they can’t or won’t create the wealth that is the basis for redistribution. In other words, they can’t or won’t create a rising tide that will lift all boats. Ultimately, a tax-based welfare state will eat itself because it burdens the wealth creators whose wealth it wants to redistribute.

I’ve argued against this rejection of the welfare state before, and I won’t repeat myself here. Suffice it to say that the risks to incentives are overstated, as well as the benefits of trickle down economics. (For instance, companies may decide to be more productive in order to compensate for the losses from taxation).

Let’s now turn to the demand side of the anti-welfare argument. Again, the reasoning is based on incentives that ultimately result in a self-defeating anti-poverty system, but this time it’s about the incentives of the recipients of welfare. The argument goes roughly like this. Take unemployment benefits for instance (one part of the welfare state). These benefits supposedly discourage people from working. And when people don’t work, they fail to gain experience and to nurture certain values – such as discipline – necessary in order to escape poverty. Hence, unemployment insurance makes the recipients worse off.

Or take another kind of benefit: financial support for children born out-of-wedlock. This kind of support also triggers the wrong incentives. It encourages teenagers to get pregnant and it discourages adults to marry. Teen-pregnancies and single parenthood both make it more difficult to escape poverty. Something similar happens with scholarships or affirmative action for poor students. These so-called anti-poverty policies actually incentivize students to enroll in education programs that are above their capabilities, forcing them to drop out of school at some point, and hence forcing them into poverty. And, finally, there’s the argument about welfare dependence: when people get money from the government they tend to settle in their role as receivers and fail to take their lives into their own hands. Again the wrong incentives.

This demand side of the anti-welfare argument suffers from two fatal shortcomings. First, the data don’t (always) support it. For example, it’s not true that generous unemployment insurance leads to higher unemployment. And secondly, it’s classist in the sense that it offers an essentialist depreciation of the poor as a class. The poor, according to the argument, suffer from a series of typical deficiencies:

  • shortsightedness (in the case of the person being tempted by child benefits and ignoring the long-term costs of teen pregnancy or single parenthood)
  • a lack of self-judgment (in the case of the student accepting a scholarship and enrolling in a program beyond her capabilities) and
  • a lack of self-control (in the case of the person settling in dependency).

This classism is not only generally incorrect and unfair, but it also obscures the many other causes of poverty. The poor aren’t always to blame for their own poverty, and the welfare state doesn’t force them to make themselves poor. Moreover, and even worse, this classism can be self-fulfilling.

Also, hasn’t the recent financial crisis shown that wealthy people, especially bankers, are equally short-sighted, self-deluded and lacking in self-control? And even if it’s true that those vices are more prominent among the poor (as is claimed here for example), wouldn’t that be a good argument for welfare rather than against it? If the poor can’t rationally take care of their own fate because they are self-deluded and unable to plan for the long term, shouldn’t the rest of us try to help them?

Economic Human Rights (35): A Right to Unemployment Insurance?

Article 23 of the Universal Declaration of Human Rights provides a right to work, as well as a right to “free choice of employment and to just and favorable conditions of work”. That right protects us against slavery, forced labor, unfair wages, and unsafe working conditions. The same article offers a right “to protection against unemployment”. That clause can be interpreted in two ways:

  • it can mean that if we’re out of work through no choice of our own, we should get help to find work (either from the state or from our fellow citizens)
  • or it can mean that if we’re involuntarily unemployed, we should get some monetary compensation for the loss of salary or income and the financial stress that we suffer as a result.

It’s the latter interpretation that is made more explicit in another article, number 25, of the Declaration which mentions “the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control”.

So it seems we have a right to unemployment insurance or unemployment benefits. The obvious justification for this right is material wellbeing: the absence of poverty is also a right.

However, there are some other types of justification of unemployment insurance. Some call UI an “automatic stabilizer” in times of economic hardship: Keynes taught us that both unemployment and falling wages lower consumer demand and can lead to even greater unemployment. Stingy or absent unemployment benefits lower demand even more. In that view, which does sound plausible, unemployment insurance isn’t just a good in itself and for the individuals concerned (as well as for those who may someday suffer unemployment and who can suffer some amount of stress because of the risk), but is necessary for the periodic regeneration of capitalism and for the smoothing of the business cycle. Benefits are also efficiency enhancing because of another reason:

One of the possible advantages that is touted for more generous UI (including by Mike Konczal) is the idea that it allows for better job matching—people can wait to find the right long-term job opportunity instead of taking the first job that becomes available. (source)

It’s better to have people perform the jobs they prefer because they’re likely to be most efficient there. Hence, it’s better to give them more time to find the right job, and to give them unemployment benefits so that they have the time.

Others, however, call this right a foolish invention because it destroys incentives to work at the level of individuals, and reduces incentives to create wealth at the level of companies (because of the relatively high tax rates that come with the welfare state, that in turn comes with benefits such as unemployment insurance). It doesn’t enhance efficiency at all, on the contrary. But the evidence for this view is not so strong:

Evidence suggests that individuals do prolong their job search when they receive unemployment benefits, partly because they are looking for the best possible job. But the magnitude of this effect is likely to be small.

A recent study … compared lengths of unemployment among those eligible for unemployment insurance with those who were not eligible. Their statistical analysis suggests that extended benefits accounted for only four-tenths of 1 percentage point of the nearly 6 percentage point increase in the national unemployment rate over the last few years. (source)

Still others call the right to unemployment benefits a foolish invention, not because of reasons that have to do with overall economic efficiency, but because they believe that the unemployed have no one else to blame but themselves for their misfortune, and therefore can’t demand help from others. Those others can voluntarily decide to help the unemployed, in a spirit of charity that extends even to self-inflicted misfortune, but the unemployed don’t have a right based on moral concerns to demand such help. And indeed, there may be some logic to such a view: if we all believe strongly that we deserve what happens to us, we are likely to work hard, show discipline and self-control and hence achieve success. Conversely, those who think that the causes of their misfortune are always outside of their control, are not likely to invest much effort in their lives. However, morality and life are much more complicated than that. The best efforts can lead to disaster, and apathy can lead to success. People who are not the sole authors of their success can be required to help those who are not the sole authors of their misfortune.

The Ethics of Human Rights (29): Should Taxation Be a Tool For Economic Efficiency or For Social Justice?

Taxation is a recurring theme in political discussions between people of the left and right. People of the left see taxation as a tool for social justice. They tend to prefer rather high taxation rates and a progressive taxation system:

  • High taxation rates bring in revenues that are large enough to enable the government to spend on programs and transfers that are designed to promote social justice: unemployment benefits, poverty reduction policies, education, healthcare etc.
  • Progressive taxation rates are just because they impose relatively (and not just absolutely) higher taxes on people who are more able to pay, and, in addition, reduce income inequality and hence realize another goal of social justice.

People on the right usually favor low tax rates and a non-progressive taxation system (either a proportional system in which everyone pays the same share of their income, or a regressive system in which everyone pays more or less the same amount in taxes). Rather than on social justice, they focus on the economic effects of taxation.

  • They reject high taxation rates because they claim that these high rates discourage people and are a disincentive to hard work, effort and investment. Because high rates limit effort and investment, they also limit productivity, innovation, international competitiveness and job creation.
  • They also reject progressive tax rates because high tax rates for high incomes discourage those people who work relatively hard (they work hard supposedly because they earn a lot) and who are most likely to innovate, to be productive and competitive and to create jobs.
  • However, they don’t necessarily favor regressive taxes because they are equally hostile to high tax rates for low income people, albeit for other reasons. High taxes for low income people discourage them from entering the labor market and hence inflate unemployment. Still, they claim that the worst damage is done by high taxes on the higher incomes, which is the reason they reserve particular scorn for progressive taxation systems. Because high tax rates for the wealthy punish the most productive elements in a society, the whole of society suffers. More productive people will limit their productivity because they don’t want to fall into a higher tax bracket, and the money they pay in taxes can’t be invested in the economy. High tax rates, especially for the rich, have an unacceptable cost in terms of economic efficiency. Keeping taxes low, on the contrary, and allowing wealthy people to use their money in the economy, will ultimately benefit everyone (this is the so-called Trickle-Down theory).

Of course, this distinction between left and right is a caricature. Most people on the left are also concerned about economic efficiency, and most on the right are not insensitive to questions of social justice. The extremes are hardly ever encountered in real life: no one wants to limit taxes to such an extent that economic efficiency is promoted but no money is left for justice, and no one wants to put tax rates at such a high level that there is ultimately no more economy to tax. (The latter concern is expressed in the famous Laffer Curve arguing that beyond a certain level of tax rates government revenues in fact decrease instead of increase. At very high rates there is no longer any incentive for a rational taxpayer to earn any income and hence tax revenues will decline while tax rates increase. However, it isn’t clear what “very” in the previous sentence actually means and where exactly the tipping point is situated).

Personally, I believe that the concerns of both right and left are justified and need to be balanced, and that too much focus on either the element of efficiency or justice is detrimental to the other element. On the one hand, there’s only so much money a government can raise without wrecking the economy, and justice isn’t only about spending money (there can even be perverse effects such as unemployment traps, welfare dependency etc.). On the other hand, there’s only so much an efficient economy can do to realize social justice all by itself and quasi-automatically (remember the invisible hand…). To quote Matthew Yglesias’ sarcastic comment on the skyrocketing incomes of the U.S. top 400 earners in the decades leading up to the 2009 recession:

As is well-known, the Top 400 are considerably more talented than the rest of us. And [the] decline in their tax rates has created exciting new incentives for them to apply their talents. And that, in turn, is why the 2000s were a so much more economically successful decade than the 1990s, not just for the Top 400 but for the rest of us as well. Thanks to their skyrocketing incomes and falling tax rates, we’re currently [during the 2008-2009 recession, FS] all enjoying the fruits of prosperity, rapid growth, and low unemployment. Thanks rich guys! (source)

A similar sentiment is expressed in this clip from the Daily Show (skip to the 4th minute or so).

I believe taxes in the U.S. are relatively low and can be raised without too much harm to economic efficiency. The resulting government revenues could then be spent on improving the social safety net and promoting social justice. It’s difficult to imagine for a European that a country such as the U.S. doesn’t offer health insurance to millions of its citizens. Also, unemployment benefits are quite stingy in the U.S., both in terms of eligibility and duration: only one third of the unemployed qualify for benefits and only for 26 weeks (extendable during recessions if the Republicans don’t object, as they infamously did beginning of 2010).

The system of unemployment benefits could easily be improved without perverse effects or harm to economic efficiency. And there are other areas of possible improvement as well.

However, as a European in Europe, I think there’s a strong argument that the social safety net in Europe (at least in some countries) has harmed European competitiveness, labor market participation and innovation.

Still, is there evidence of this? What do the data say about high tax rates harming economic efficiency, in Europe and in general? Is the conservative case against taxes as strong as it seems? I’m afraid not. There’s some evidence that the effect of reasonably rather than extremely high rates on economic efficiency is minimal at best. Here’s more evidence from Lane Kenworthy about the U.S. and other affluent countries (always keeping in mind that correlation doesn’t imply causation and that the absence of a large negative effect of high taxes doesn’t preclude the possibility that lower taxes would have had a large positive effect). One measure of economic efficiency is economic growth. If we plot economic growth rates for the U.S. against tax rates for the wealthy we see that higher tax rates lead to more growth. But of course there can be catch-up effect: higher rates producing their effects only years later. That’s taken into account in these graphs, which also show that an international comparison doesn’t prove that countries with higher tax rates have lower growth.

If we have a look at the data about the effect of high tax rates on unemployment (another conservative concern), we also see that we shouldn’t panic about taxes.

Now, if there is no good reason not to tax at a moderately high level, based on concerns about economic efficiency, the question remains whether there is a good reason to tax based on social justice reasons. Given the caveat that social justice isn’t all about government spending (I argued <a href="http://here that it is primarily about something else) and that such spending can in some cases have perverse effects (see above), I do believe that some spending is necessary in some cases, and that relatively high tax rates are necessary to produce the revenues required for this spending.

Again following Kenworthy, I believe that relatively high tax rates are acceptable and even necessary to create the revenues required for social justice policies, but that progressive tax rates in themselves don’t do the job of reducing income inequality, contrary to what is often claimed as a justification for progressive rates. That doesn’t mean that we shouldn’t reduce income inequality (it’s quite high in the U.S.) – there are good reasons to try. It just means that progressive taxation in itself won’t do the job. The important thing is to have high tax revenues which can then be spent in transfers and services that reduce income inequality and achieve other goals of social justice. Yet, I still think a progressive system is required, not because of its supposed effects but simply because it is just in itself, compared to proportional or regressive systems. A person with more income can afford to pay, not merely more in an absolute sense but more in the sense of a larger share of his or her income.

Income Inequality (19): What To Do About It?

What to do about income inequality? Assuming of course that you agree that income inequality is a problem. How can we do something about the problem without destroying the incentives behind economic growth (assuming that much of economic growth is driven by financial rewards for effort, creativity, innovation etc. and that taking away resources from wealthy successful people takes away their will and creativity, hence driving down growth and making everyone, including the poor, worse off).

One thing that everyone thinks of is taxation, more precisely <a href="http://progressive taxation: this reduces the income of higher-earning families by a larger percentage than the income of lower earning ones. “Spreading the wealth around”, if you want. This makes incomes more equal in a direct way, but also in an indirect way because the tax revenues can be spend on poverty reduction (unemployment benefits, healthcare or education subsidies etc.). (An inheritance tax can also help, because it promotes social mobility and discourages income inequality that is not the result of economic incentives, and because a lack of social mobility is correlated with income inequality).

The problem, however, is that taxation is hardly ever progressive, even if it looks like it is:

Taxation in affluent countries does little to alter the market distribution of income. The reason is that taxes on income and corporate profits-which are progressively structured, reducing the incomes of high-earning households by a greater percentage than those of low-earning ones-are only part of the tax system. [But] their progressivity tends to be largely offset by the regressivity of payroll and consumption taxes. … Payroll and consumption tax rates usually are “flat”: the rate is the same regardless of individual or household income. Payroll taxes tend to be regressive because they apply to earnings rather than income, and wealthy households tend to get a smaller share of their income from earnings than do most households in the middle of the distribution. Also, payroll taxation often features a cap; in the United States, for instance, earnings above roughly $100,000 are not subject to the social security payroll tax. Consumption taxes apply to spending rather than income. They are regressive because lower-income households by necessity spend more of their income than their higher-income counterparts, so more of their income is subject to the tax. Lane Kenworthy (source)

Redistribution, then, does not occur through or because of the tax system itself, but through the systems of public spending.
Some interesting graphs
here. So it’s the amount of taxes, rather than the system of taxes, that enables governments to redistribute and reduce income inequality.

Economic Human Rights (29): Unemployment Benefits in the U.S. and Elsewhere

Strange as it may seem to some, unemployment benefits are a human right, and rightly so in my opinion. Poverty makes rights impossible, and unemployment benefits save many from poverty, especially during a recession in which unemployment isn’t just a phase between two jobs. Read for instance art. 22, 23 and 25 of the Universal Declaration:

Article 22: Everyone, as a member of society, has the right to social security.

Article 23: Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.

Article 25: Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.

Three times! They must have meant it.

Compared to many other industrialized countries, the U.S. usually adopts a very critical attitude towards social and economic rights in general, and hence also to the right to unemployment benefits. Which is apparent from its relatively stingy system.

At just under $300, the average weekly benefit is less than half the average private-sector wage. Mississippi’s maximum benefit of $230 is not much more than the federal poverty threshold of $200 for an individual. (source)

And it’s not just the total amounts of the benefits:

Compared with the systems in other industrialised countries, the American unemployment-insurance (UI) scheme pays lower benefits for less time and to a smaller share of the unemployed. … States often require beneficiaries to have worked or earned an amount that disqualifies many part-time and low-wage workers. They also disqualify people seeking only part-time work – even though many people now work part-time for family reasons. Benefits typically last for only six months, more than enough time to find a new job in normal times but not in recessions. (source)

This isn’t only a human rights issue. Especially in a recession it can mean making things worse. When people lose their jobs, you don’t want them to lose a large part of their purchasing power since economic recessions are made worse by falling consumer spending.

However, making the system of unemployment benefits more generous would almost certainly require higher taxes. And although the U.S. is a low-tax country (compared to other industrialized countries) that seems pretty utopian right now (given the already hysterical fears about the fiscal consequences of the healthcare proposals).

Types of Human Rights Violations (1): Fake Zero-Sum Human Rights Violations

We usually, and correctly, think of human rights violations as a zero-sum game (although the word “game” is hardly appropriate here). A rights violation is a harm inflicted by one person on another, for the benefit of the former. And although the benefits for the violator do not always equal the harm for the victim in a quantitative sense, we can safely call it zero-sum. In fact, neither the harm nor the benefits that result from rights violations can always be quantified.

I have represented these harms and benefits in the table below (just look at row number 1 for the moment): a plus sign for “violator value” means that he or she receives some benefits from the violations (otherwise there probably wouldn’t be a violation); a minus for “victim value” means a harm done to him or her. And indeed this is the usual case. But you can see in the table that other combinations of values and signs are possible. But more on that in a moment.

The usual case – number 1 – is what we could call the typical human right violation. It’s zero-sum: the thief who steals from me gains what I lose; the oppressive government that limits my right to free speech or movement or assembly or organization, gains stability and regime security while I lose freedom. In case number 1, the violator always wins, and the person(s) whose rights are violated always lose(s), in roughly the same proportion (if proportions are at all relevant here).

The second, more exceptional case, occurs when not only the victim of the violations loses out, but also the perpetrator. Examples: the suicide bomber (except when he or she is right about Paradise, which I doubt); the use of torture, invasion, drone attacks etc. by the U.S. in its “war on terror” (tactics which may create more terrorists than they eliminate).

The third case is still more exceptional, unfortunately, because it is really a win-win situation, disguised as zero-sum. Two examples. Take the development of the economies of India and China. It can be argued that these economies “take jobs away” from the developed countries, and that in a sense the right to work of many people in the West are violated because of it (the fact that none of this is intentional isn’t sufficient to claim that no rights are violated). However, as these developing countries increase the size of their economies, they will provide valuable and relatively cheap goods and services to businesses and households in developed countries, stimulating the economies there, and boosting disposable income, which reduces poverty in developed countries. As developing countries develop, they will also start to consume more western goods and services, with the same result. Again, no guarantee of course that the gains of one will equal the gains of the other, but at least it’s win-win and not zero-sum.

A second example, also to do with work: when a government withholds or stops unemployment benefits, it violates the rights of the unemployed. But when done under certain circumstances, this will encourage people to find work, and hence will make them better off in the end.

At first sight, these two examples look like typical zero-sum human rights violations, but not when look a bit closer.

The fourth case, where the victim of rights violations benefits from them, and the perpetrators lose out, is extremely exceptional, I guess. I could only come up with one example: the dictator becoming so oppressive that he creates revolt and ushers in his own downfall and the liberation of his people.