Month: April 2025

Way back during the college admissions scandal of 2019 the media briefly focused on how the wealthy can secure admission to the best schools. The discussion included talking about opportunity hoarding, a concept developed by Richard Reeves in his Dream Hoarders. Opportunity hoarding occurs when parents seek advantages for their children in ways harmful to others. One example is parents disparaging the children of other people who are competing with their own for school admission. The practice of opportunity hoarding raises moral issues I will address in a short series of essays. I will begin by discussing economic mobility.

Americans want to believe in economic mobility, that by hard work, people will be better off than their parents. While people just talk about economic mobility, it is important to distinguish between two types: relative mobility and absolute mobility. In both, mobility is moving up or down relative to one’s parents. Relative mobility is measured by comparing the economic ranking of current adults relative to their parents’ ranking. This can be illustrated by an analogy to racing 5Ks. When comparing two 5Ks, your relative performance is a measure of your place in the second race relative to how you placed in the first race. If you placed better in the second race than in the first one, then your relative performance was upward. If you placed worse, then your relative performance would be downward. In this analogy, the race is a generation: the first race would correspond to the economic ranking of the parents and the second would be analogous to the current adult’s ranking.

Absolute mobility is a measure of whether the current adults have a higher adjusted (for inflation, etc.) income at the same age as their parents. Going back to the running analogy, your absolute performance would be a measure of whether you were faster in the second race relative to the first race. As before, the first race is analogous to the parents’ income and the second is analogous to the current adults’ income. While both measure improvement (or decline) there are important differences.

A critical difference is that relative mobility is a zero-sum game: if someone moves up, someone else must move down. To illustrate, the top 1% can only be 1% of the population. If Sally moves into the 1%, then she pushes someone else down. The analogy to the race illustrates this as well: if you move into first place, then you push someone else into second place. In contrast, absolute mobility need not be zero-sum: you having more income does not entail that other people get less. Going back to the running analogy, if you get faster between races, it does not make anyone else slower, and everyone could get faster. Because of this, a country could have little or no relative mobility, but great absolute mobility.  Using the running analogy, the same people could place in the top 10 in race after race while everyone is also getting faster. Because of this, distinguishing between the two types of mobility is critical, especially when it comes to opportunity hoarding.

If relative mobility is low, then children usually stay in the same economic class as their parents. For example, if Sally is born to parents in the top 20%, then she will probably stay there. If relatively mobility is high, then people are likely to move up (or down) relative to their parents. While it is tempting to think that low relative mobility would always be bad, this is where absolute mobility is important. If relative mobility is low but absolute mobility is high and widely distributed, then most people will be better off than their parents, though they will still be in the same relative place. Going back to the running analogy, everybody is running faster, but people keep getting the same places in the races. One could imagine a desirable society that has very low relative mobility but exceptional absolute mobility. Imagine, if you will, a nation in which Bartholomew Billionaire’s family has always been in the top 1% and owns dozens of houses, several yachts, three private jets and 100 luxury cars. Living in the same country is Paula Poor whose family has always been in the lowest 1% of income earners. But her family now owns a modest house, her children are attending state college, and she and her husband can easily afford health insurance, good food and the occasional vacation.

 This seems to be better than a society with high relative mobility but poor absolute mobility. People readily moving up (and down) from generation to generation might seem good, but if income does not improve (or worsens) from generation to generation, then moving around more freely would be worse than being “stuck” in a good situation. Going back to the running analogy, this would be like races in which people did not get better (or got worse), but different people made it into the top 10 each race.

A society in which both types of mobility are low would be bad: those stuck in the lower income classes would not move up relatively or absolutely. While those in the upper classes would be secure, their lot would also not improve much relative to their parents. This would be a rather stagnant society. But what about real countries, such as the United States?

Currently, the United States has low relative mobility: contrary to American mythology, people usually  stay within the class they were born into. Absolute mobility used to be good, but income has stagnated and now the United States has lower absolute mobility. As such, many Americans are worse off than their parents and are also stuck in their economic class. In this situation, we are experiencing downward mobility.

Those in the upper classes (the top 20%) are aware of what downward mobility entails and they try to prevent this by giving their children advantages over other children. While doing the best one can for their children is usually the right thing to do, it can become morally problematic when this harms the opportunities of others, perhaps by locking them out of moving upward. Richard Reeves and Kimberly Howard have discussed the phenomena of the glass floor—a metaphor for the various factors that keep the children of the well off from sinking into the lower classes. This floor is a ceiling for others. Even if there is no malicious intent, to the degree that it keeps the children of the upper classes from descending it also keeps the children of the lower classes from ascending. This is for the obvious reason that relative mobility, like the places in a race, is zero-sum. My victory is your loss, and your victory is my loss. But it should not be simply assumed that this is immoral, hence the need for additional essays on this subject.

Because of income inequality and a lack of compassionate leaders, America has a serious homeless problem. One growing segment consists of people who live in their cars and many of them  are homeless despite being employed. They are usually not homeless not by choice, but because they cannot afford housing near their work.

Such people lack political power and are often the subject of negative stereotypes, it is not surprising that municipalities have tried to “solve” the problem by laws that crack down on living in cars. As would be expected, these laws have not been effective. Churches, charity groups and some communities have attempted to address the problem in a more positive way by establishing safe parking areas for the homeless. In some cases, there is access to showers and bathrooms. This situation raises moral concerns about what, if anything, should be done to help the homeless. This is, obviously enough, part of the broader moral question of what we owe other people.

One approach, as noted above, is to try to solve the problem by banning people from sleeping in their vehicles in public areas. This gives people the choice between trouble with the law or leaving. If these laws are widespread, then leaving becomes a problem, as there will be fewer places to go. Also, those with employment are tied to their jobs and moving would only make things worse. If they stay, they can end up losing their car to fines and impoundment, which will leave them without shelter and transportation. This solution is also cruel as it punishes people for being poor and unable to find affordable housing. It could be objected that these people could easily drive somewhere, find a new job and get affordable housing. However, if it were so easy for them to do this, then they would have done so already.

Another approach, as mentioned above, is for charity, churches and communities to create safe parking for the homeless. While this is preferable to using the police against the poor and the powerless, it does have some problems. One concern is the cost of the lots and resources used to pay for them could pay for housing. Another concern is that the lots used by the homeless are not usable by others, reducing available parking. But this could be addressed by improving public transportation, which we should be doing anyway.

 Perhaps the greatest concern is that while the homeless need not fear the police and have some safety, they are still living in their cars in a parking lot, which is stressful, unpleasant and difficult. The fact that they do not have a permanent residence also creates other problems, such as where the children can attend school. As such, while such safe lots are a step up from parking illegally or “in the wild”, they are hardly ideal and do not address the underlying problems.

Obviously enough, the main reason that the working homeless live in their cars is that they cannot afford housing. This can be explained in terms of either their pay being too low or the cost of housing being too high. As such, the underlying problem is financial, and this suggests two obvious solutions.

The first is to increase wages so that the working homeless can afford at least basic, safe housing. The obvious problem is determining how this should be done. While some employers do provide sufficient wages, it would be foolish to think that most will willingly pay a living wage. Another option is to use the coercive power of the state, not against the homeless, but to compel employers to pay more. This raises the usual objections about the state interfering with the “free” market.

The second solution is to provide more affordable housing. As with better pay, this could be done by the private sector (landlords voluntarily making less money) or by the state (compelling more affordable housing). As always, this raises the usual objections about the state interfering with the “free” market.

As noted above, one could argue that the working homeless should find better jobs or move someplace with lower housing costs. While this has some appeal, the working homeless driving away would be a problem for the welathy: if the people who clean their houses, make them lattes, teach their kids, put out their fires, police their streets, and work in their startups are forced to move too far away, then the rich will be left without these services. Perhaps this is why Silicon Valley is working so hard on robots. As such, even the rich have a reason to support better pay, affordable housing, or better public transportation (until the robots arrive). However, expecting rational self-interest or moral concerns about the well-being of others to solve the problem within the private sector is irrational. Also, solving social problems is not really the job of the private sector. Dealing with social issues is one reason we have governments. So, if the problem is to be addressed effectively, then the power of the state would be needed.

As noted above, using the coercive power of the state against the homeless is not an effective solution and is not ethical. As such, the state should use our resources to address wages or housing costs. As noted above, many would object to the state interfering in the market (except, obviously, when the state’s interference is to their advantage) by compelling change in wages or the cost of housing. However, the Lockean view of the state is that it exists for the good of the people and using it to slightly reduce the wealth of the wealthy so the less well-off do not have to live in their cars is morally justified. At least for those who subscribe to the Lockean view of the state. But not everyone subscribes to this view of the purpose of the state and even Lockeans might see this as unjustified.

Another option that does not involve increasing wages or increasing affordable housing is for the state (and perhaps some in the private sector) to invest in affordable, reliable and fast public transportation that would allow workers to live where housing is affordable and commute into the upper-class zones for work. This approach would have the negative effect of enhancing the growing division between the classes in America: the rich will dwell within their enclaves, while those who teach their children, make their lattes, clean their houses, fight their fires, and police their streets will be transported in to do their work, then shipped out when they are done. But at least they won’t be living in their cars. Life in America is a choice between dystopias, at least under the current system.