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Pareto Punishment – Kevin D. Williamson

A “Pareto improvement” (named for the 19th-century polymath Vilfredo Pareto) is a useful idea from economics: It is change that makes at least one party better off without making anyone worse off—because different people have different preferences and priorities, it is possible to reallocate goods in a way that is not zero-sum.

E.g.: Imagine that you have a peanut butter cookie in front of you and that you are sitting across the table from the Cookie Monster, who has a chocolate chip cookie in front of him. (There’s been a lot of Sesame Street in my life lately.) Maybe you have a peanut allergy, or maybe you simply do not like peanut butter, but you do not want that peanut butter cookie that is in front of you—while the prospect of the chocolate chip one near to hand is agonizing, because you do want a cookie in the worst way. The Cookie Monster, however, is a friend to all cookies, and he does not care whether it is a chocolate chip or peanut butter cookie going into his fuzzy blue face: C is for cookie, and that’s good enough for him. If you trade cookies, then you are better off and he is no worse off. Differences in preferences and the related issue of marginal utility (the Saudis do not very much need one more barrel of oil and would happily trade some oil for … pretty much anything else) are a big part of what makes free exchange (including free exchange across borders) such an effective way of improving life for everyone involved: It isn’t only about comparative advantage and specialization.

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