vrijdag 12 november 2010

Free market penalizes discrimination

First, I would like to react to Martijn’s latest blog entry.
In my opinion, whether a company refuses to hire certain job applicants or not, there’s a possibility to lose customers either way. If the company rejects an applicant because of his or her race, it may also lose some of its clients who don’t want to buy from a racist company.
Furthermore, as you already said yourself, if the decision whether or not to hire a certain applicant isn’t purely based on job performance, but also on skin colour, it’s a form of racial discrimination. So the client may be king, but not if he asks the company to violate the law.

I did some research on this topic and I came across an article written by Robert P. Murphy, in which he states that “bad” discrimination is always penalized by the free market principles.
Allow me to explain this through Martijn’s example of bigoted customers:
As we aim to ensure fair and equal treatment in the job market, companies that refuse to hire applicants because of their race should be an exception. Therefore, a  workforce that consists of only white workers would be a unique situation, but, sadly, a very popular one among racist buyers. Nevertheless, according to Robert P. Murphy, they pay the price for their bigotry, because, as we all know, something unique is generally more expensive. This explains how the free market tends to punish “bad” discrimination.

Annelies Delaere

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