Hauser’s Curve Image Credit: Wikimedia commons/Sugar-Baby-Love
American progressives want a much bigger government with greater powers, while neoliberals (usually mislabeled “conservatives”) passionately want a greatly smaller, weaker government. The reasons for the neoliberal resistance to progressive policies are that neoliberals believe those policies to be incompatible with both human freedom and general economic prosperity.
The interaction of Hauser’s Law with Rahn’s Law provides an important neoliberal argument for limiting both government taxes and government spending. However, Hauser’s Law is an economic “law” only by courtesy of the fact that it has always been observed to be true in the United States for the past seven decades or so. If it can be repealed, that economic change could expose a serious flaw in the neoliberal picture of economic reality.
A friend and critic of mine on the progressive side of the argument pointed out an explanation for Hauser’s Law that shows how it might be repealed. Let us take a careful look at it.