The economics of political correctness
Spiked authors believe that PC is driven by a loathing for ordinary people. According to spiked, PC brigadiers view ordinary folks as extremely impressionable, easily excitable, and full of latent resentment. Exposure to the wrong opinions, even isolated words, could immediately awaken the lynch mob. PC, then, is about protecting ‘the vulnerable’ from the nasty tendencies of the majority population.
But if PC was not really about protecting anyone, and really all about expressing one’s own moral superiority, PC credentials would be akin to what economists call a ‘positional good’.
A positional good is a good that people acquire to signalise where they stand in a social hierarchy; it is acquired in order to set oneself apart from others. Positional goods therefore have a peculiar property: the utility their consumers derive from them is inversely related to the number of people who can access them.
Positionality is not a property of the good itself, it is a matter of the consumer’s motivations. I may buy an exquisite variety of wine because I genuinely enjoy the taste, or acquire a degree from a reputable university because I genuinely appreciate what that university has to offer. But my motivation could also be to set myself apart from others, to present myself as more sophisticated or smarter. From merely observing that I consume the product, you could not tell my motivation. But you could tell it by observing how I respond once other people start drinking the same wine, or attending the same university.
If I value those goods for their intrinsic qualities, their increasing popularity will not trouble me at all. After all, the enjoyment derived from wine or learning is not fixed, so your enjoyment does not subtract from my enjoyment. I may even invite others to join me – we can all have more of it.
But if you see me moaning that the winemakers/the university have ‘sold out’, if you see me whinging about those ignoramuses who do not deserve the product because they (unlike me, of course) do not really appreciate it, you can safely conclude that for me, this good is a positional good. (Or was, before everybody else discovered it.) We can all become more sophisticated wine consumers, and we can all become better educated. But we can never all be above the national average, or in the top group, in terms of wine-connoisseurship, education, income, or anything else. We can all improve in absolute terms, but we cannot all simultaneously improve in relative terms. And that is what positional goods are all about – signalising a high position in a ranking, that is, a relation to others. This leads to a problem. Positional goods are used to signalise something that is by definition scarce, and yet the product which does the signalling is not scarce, or at least not inherently. You can increase the number of goods which signal a position in the Top 20 (of whatever), but the number of places in that Top 20 will only ever be, er, twenty. Increasing the number of signalling products will simply destroy their signalling function. Which is why the early owners of such a signalling product can get really mad at you if you acquire one too.
We have all seen this phenomenon. Those of my age (1980 vintage) have probably witnessed it for the first time in their early teens, when an increasing number of their schoolmates tried to look like Nirvana singer Kurt Cobain, and being a fan of that band lost its ‘edginess’. ‘Being alternative’ is a positional good. We cannot all be alternative . Literally not.
Now remember how the ‘early adopters’ responded when Nirvana fandom went mainstream, and their social status was threatened, because there are clear parallels with PC: some of them went on to more extreme styles; others tried to repair the broken signal by giving endless sermons about the differences between ‘those who are in the know’ and ‘the poseurs’.
PC-brigadiers behave exactly like owners of a positional good who panic because wider availability of that good threatens their social status. The PC brigade has been highly successful in creating new social taboos, but their success is their very problem. Moral superiority is a prime example of a positional good, because we cannot all be morally superior to each other. Once you have successfully exorcised a word or an opinion, how do you differentiate yourself from others now? You need new things to be outraged about, new ways of asserting your imagined moral superiority.
You can do that by insisting that the no real progress has been made, that your issue is as real as ever, and just manifests itself in more subtle ways. Many people may imitate your rhetoric, but they do not really mean it, they are faking it, they are poseurs (here’s a nice example). You can also hugely inflate the definition of an existing offense (plenty of nice examples here.) Or you can move on to discover new things to label ‘offensive’, new victim groups, new patterns of dominance and oppression.
If I am right, then Political Correctness is really just a special form of conspicuous consumption, leading to a zero-sum status race. The fact that PC fans are still constantly outraged, despite the fact that PC has never been so pervasive, would then just be a special form of the Easterlin Paradox.
Keep up the good work, spiked team. But bear in mind that you are up against a powerful economic force.
Follow @K_Niemietz on Twitter.
 Book recommendation on this subject: Heath, J. and Potter, A. (2005): The rebel sell. How the counterculture became consumer culture, Chichester: Capstone Publishing.