Where Discrimination Can't Flourish

John Cutter: Charlie, ever play roulette?
Charles Rane: On occasion.
John Cutter: Well, let me give you a word of advice. Always bet on black!
--Passenger 57

Prof Williams uses recent racist comments made by Donald Sterling, owner of the Los Angeles Clippers, to demonstrate a point made several times on these pages. Market forces impose serious economic penalties on for-profit enterprises when they make employment decisions on any basis other than worker productivity.

Although he talks like a racist, Sterling has made employment decisions as if he has been color blind. The Clippers' three highest paid players, who pulled down $46 million last season collectively, as well as 85% of the Clippers roster, are black. If Sterling was behaving in a manner consistent with his words, then he should be employing a lily white roster.

He couldn't do so and expect to profit, of course. Black talent has dominated the sport of basketball for years. Were he to pass up superior talent of any skin color, then competitors would scoop those players up, putting Sterling at a disadvantage. Chances are that if Sterling employed an all white team, then the Clippers record would plummet as would the franchise value.

Sterling knows this. We know that he knows because of his business decisions.

Unhampered markets punish discriminatory bias. The solution to discrimination is not more rules and regulation. The solution to discrimination is to make opportunity depend on one's productivity.

Capitalism is a bigot's nightmare.