Last weekend, libertarian Walter Block spoke at the Mises Institute event in Seattle titled House of Cards: Has the US Economy Recovered? His speech concerned the gender pay gap myth.
I thought it would be worth noting the unwitting connection he made between economic truths and the Chateau Fundamental Premise: sperm is cheap, eggs are expensive.
In his lecture, Block explained that there is indeed a pay gap between men and women, but the reason for that gap is not sexism or workplace discrimination. As many other economists have noted, other factors come into play, such as women leaving the office to give birth and raise children.
I won’t rehash them here, but one point Block highlighted was particularly insightful.
The argument was this: Discrepancies between men and women are due to a bell curve effect regarding IQ. Women are more or less clustered in the center, while men compromise the extremes. Most CEOs and bigwig business leaders are men, but men also make up the vast majority of the mentally ill, the homeless, the criminal population, and workplace deaths.
This gender inequality is absolutely necessary for the stability of civilization, Block argued, because if not the population would collapse. Instead of marrying and/or having children, far too many women would die childless due to homelessness, mental illness, workplace deaths, or criminal activity and imprisonment.
It’s very possible an ancient civilization tried to impose a form of gender equality and fell apart either from internal strife or severe depopulation.
Whether it’s game theory confirming economics or economics confirming game, it’s proof that have a wide-range understanding of the world is important if you’re going to accurately interpret reality.