By Bryan Caplan
Last year, I tried to figure out why there aren’t a lot more right-wing (or apolitical) firms. A recent piece by Richard Hanania comes down firmly in favor of my Explanation #4. To review:
Explanation #4. Few moderates or right-wingers care enough to create a major profit opportunity. While they don’t relish looking over their shoulders, they prefer their current job to an alternative where they can shoot their mouths off but earn a $1000 less per year. In this story, the left proverbially just “wants it more.” And as usual, the market takes the intensity of conflicting preferences into account.
Hanania presents a pile of evidence that despite near-parity in ordinal preferences (the number of Americans who support Democrats roughly equals the number who support Republicans), there is a massive imbalance in cardinal preferences (the number of Americans who strongly support Democrats vastly exceeds the number who strongly support Republicans).
Evidence? Read the whole essay for the graphs; I’ll just summarize here.
1. Vastly more people donate money to Democrats than Republicans.