Differential Anti-Market Bias
By Bryan Caplan
Of course Arnold’s right that outrage over rising gas prices reflects anti-market bias. But in my defense, I was trying to explain why people are especially freaked out by rising gas prices. Why do people seem angrier about losing .8% of their income to higher gas prices than they would to losing .8% of their income to inflation? In both cases, they tend to blame suppliers’ greed, but the former tendency is much stronger than the other.
I stand by my explanation for the disparity, though Arnold’s helped me to see that I should have stated the puzzle more clearly.