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Who integrated baseball? Reflections prompted by “42”

Below is a column that Mark Schug and I have in the April 12 Milwaukee Journal-Sentinel. It uses the premiere of a movie about Jackie Robinson (42) to make a point about Adam Smith and the economics of ending racial discrimination. (For the book that Mark and I wrote together, Economic Episodes in American History, the Jackie Robinson story was the pilot chapter). Here’s the column, (c) 2012 by the Milwaukee Journal-Sentinel.

The story is well-known to baseball fans, and it is now the subject of the new movie 42. In 1947, Branch Rickey, president of the Brooklyn Dodgers, signed Jackie Robinson to be the first African-American baseball player in the major leagues.

Adam Smith could not have been a fan of baseball, since the game had not yet been invented when he lived (1723-1790). But Smith, as the founder of modern economics, set forth ideas that were vital to Robinson’s breaking of the color barrier.

As Smith explained in his classic The Wealth of Nations, written 143 years before Robinson was born, individuals acting in their own self-interest in competitive markets can produce good outcomes for others, guided as if by an “invisible hand.” The release of “42” on Friday provides an opportunity to re-examine the role that free markets played in this milestone of the civil rights movement and continue to play.

It took years (and sometimes decades) after the 1954 Supreme Court decision in Brown vs. the Board of Education for most American institutions to achieve racial integration. Yet, Major League Baseball moved earlier and more quickly than other institutions – but why? As Smith explained, business owners seek profits, and thus it is advantageous for business owners to hire the most talented workers.

Before 1947, baseball club owners had agreed to not sign African-American players. This decision almost certainly was influenced by racist views among some club owners; nonetheless, it probably was based on two economic considerations as well.

First, club owners were unsure how baseball fans would react to racially integrated teams. Would white fans pay to see black players play baseball with white players?

Second, some white players had made it clear that they did not want to compete with Africa-American players. Some feared losing their jobs. Some threatened strikes or violence.

Despite the fact that Major League Baseball operated as a legal cartel, club owners faced competition. There was an ample supply of talent outside the cartel. Dozens of African-American professional and semi-professional baseball teams operated from 1887 to 1950. The Negro National League, founded in 1920, was especially successful.

Then there was also competition from the barnstorming African-American teams. The most famous barnstormers were the Satchel Paige All Stars (all African-American players) and the Dizzy Dean All Stars (all white players). They toured the nation every October from 1934 to 1945; they were watched by thousands of fans.

Competition in big baseball markets such as New York City was especially intense. After World War II, New York City had three professional baseball teams: the Brooklyn Dodgers, the New York Yankees and the New York Giants. Mass transit in New York enabled fans to shift loyalties easily from a losing club to a winning club. Owners were obliged to attract fans to their ballparks. Having a winning team was one way to attract fans. Having spectacular players was another. What if you could offer both?

Enter Rickey and Robinson. In 1946, Rickey signed Robinson, who played that year for the Montreal Royals. Rickey saw in Robinson a player who could both excite the fans and help the team get to the World Series. For that reason, he was willing to take on the social and the economic risks of signing an African-American player. Rickey calculated that the economic benefits were greater than the risk.

And Rickey and Robinson were proven right. Robinson played his rookie season with the Brooklyn Dodgers in 1947. The Dodgers won the National League pennant in 1947, and they won it again in 1949, 1952, 1953, 1955 and 1956. Robinson was selected as the Rookie of the Year in 1947 and was the National League’s Most Valuable Player in 1949. He helped the Dodgers win a World Series in 1955.

Teams that signed African-American players were rewarded on the field and in their pocketbooks. Two economists – James Gwartney and Charles Haworth – studied the impact. They found that the number of African-American players was a significant factor related to the number of games a team won.

From 1950 to 1955, the inclusion of an African-American player on a major-league team resulted, on average, in an additional 3.75 wins per year. Fan attendance was helped, too, with each additional African-American player on a team associated with 55,000 to 60,000 additional home-team admissions annually during the 1950s.

The story of racial integration of Major League Baseball is one of courage displayed by Robinson and Rickey. A feature length movie was overdue. However, we think that the economist Smith should get some credit as well.

He was the umpire whose “invisible hand” helped establish the framework that rewards talent.

Mark C. Schug is professor emeritus at the University of Wisconsin-Milwaukee. William C. Wood is professor of economics at James Madison University in Harrisburg, Va. They are co-authors of the textbook supplement Economic Episodes in American History, published by Wohl Publishing.

http://www.jsonline.com/news/opinion/so-who-integrated-baseball-419fhk4-202601411.html

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Observations

Jack London, Elsinore, and retroactive politics

Jack London was a great author, known to generations of students as the author of The Call of the Wild. Recently I stumbled across his Mutiny on the Elsinore as a free e-book. It is a striking tale of violence and survival at sea.

Only after I finished the book did I have a look at the debate about London’s politics. He was writing in a pre-feminist and pre-PC time. You might well be offended if you read the book with modern sensibilities. Here’s a column about London’s racism; here’s a column about his strong socialist bent.

SPOILER ALERT! In Mutiny on the Elsinore, London frequently refers to himself and the other white individuals on board as being born to rule over the mixed-race sailors, qualified by race alone. Honestly, he took that so far that I thought he was parodying racist sentiments instead of extolling them. Maybe I should inform myself more about an author’s social context before reading — but, now that I think about it, I would have enjoyed the book less if I had.

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Observations

A Memory of Light: unabashed fan notes

A Memory of Light was everything I hoped it would be. It’s the 14th and final book in the epic Wheel of Time series, and I just finished reading it. This series is set in a world quite different from our own. The basic plot is that a country boy named Rand turns out to be the Dragon Reborn — a prophesied leader who literally can save the world. Rand has two friends, Mat and Perrin, who also have key roles to play in this world’s future.

The series stretched out so long that its original author, Robert Jordan, did not live to finish all the books. But he left behind detailed notes and an outline. Working from this material, author Brandon Sanderson brought the series to a most satisfying close. Others have done good reviews of A Memory of Light (see here and here). For now, I’ll add these few personal notes:

  • Part of what appeals to me about the series is the humble origins of the key characters, in the rural Two Rivers area. The Two Rivers remind me a lot of my home, the Shenandoah Valley of Virginia. I like to think that, from among the good people of the Valley, we could raise up some heroes like Rand and Mat and Perrin.
  • Another part of what appeals to me is the believability of the Wheel of Time universe. It’s a place where magic works, but apart from that it all seems so right. I have known a Rand, a Perrin and a couple of Matts.
  • And finally, I like the authors’ portrayal of good and evil across parallel worlds. In the Wheel of Time world, the ethics of our own world apply: love, loyalty and sacrifice are all good. My favorite characters are all called on to make great sacrifices, and (spoiler alert!) not all of them survive. It reminds me of the greatest sacrifice of all in our own parallel world.
If you have never read anything in the Wheel of Time series, I have a strong recommendation: go find and read the first book, The Eye of the World. It is short and exciting and self-contained. There’s no need to read beyond; you’ll have gotten a good taste of what the whole series is about and you can stop there. But if you’re like me, you’ll be drawn into the Wheel of Time universe and you’ll want to read every word.
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Observations

Star Wars VII-VIII-IX?

So the Star Wars franchise will return for a “final” three films? If the producer can capture the magic of the original Star Wars, go for it! And if films 7-8-9 are going to be more like 1-2-3, well: I’d rather flush $10 away and hit myself with a blunt object than go to the theater for something like The Phantom Menace.


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Observations

Jobs, callings, and “Moonlight Graham”

Burt Lancaster as Moonlight Graham, left, and the real Moonlight Graham. Lancaster image (c) 1989 by Universal. All Rights Reserved.

If you’ve heard of “Moonlight Graham,” it’s probably only in his existence as a fictional character — a journeyman baseball player whose career brought him to the Major Leagues for only half an inning. He came close to baseball glory, but ended up going to medical school and becoming a pillar of his community as a doctor who saved and enriched many lives. “Moonlight” appears in the classic film Field of Dreams.

Kevin Costner, playing a modern-day baseball fan in the movie, suggests that it must have been tragic for “Moonlight” to come so close to baseball fame without achieving it. Moonlight’s character, played by Burt Lancaster, responds: “No. If I had only been a doctor for five minutes, that would have been a tragedy.”

Isn’t that a beautiful thought? Moonlight found a calling in which he could serve his fellow men and women, and that was more important than sports fame to him. Here’s what I didn’t know about Moonlight Graham, though: He was real. The character in the film closely tracks the actual life of Archibald Graham — a brief sports career followed by a long and successful career practicing medicine. The story is worth reading; here’s a link.

For my part, I can’t identify with having just missed a glamorous career in entertainment or sports. But I can identify with Moonlight Graham. “If I had only been a professor for five minutes, that would have been a tragedy.” I feel fortunate to have found my calling, a job I truly love, and in that I see the influence of the Divine.


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Observations Plain Money ideas

Tax reform: A task of Olympic difficulty

Now that the 2012 Olympics are over, it’s time to draw some lessons. Here’s an economic one: Tax reform is difficult to achieve and difficulty to maintain.

What? What’s the connection? Some of you may recall that, after American athletes began winning the gold, news outlets reported that prizes and medals would be taxable. This led to a legislative proposal to exempt them from taxation.

If we want to keep our current creaky and overgrown tax system, the proposal for the Olympians makes sense. Let’s add one more tax break, so that nothing will be due from these young men and women who worked so hard and represented their country so well.

But sometimes there are things we economists know, and we know them so well that we want to say, “Shut up and listen.” We’re much too polite for that, but this is one of these times. If you want a good tax system, you need the widest possible tax base and lowest tax rate for any given revenue-raising goal.

Exempting Olympic winnings illustrates all this so well. If you exempt Olympic winnings, why not the winnings of those who represent our nation in international music and art competitions? And if that, should the exemption apply when the international competition is held in the U.S.? And if that, shouldn’t we exempt winnings of athletes and artists and musicians in domestic competitions, not just international ones?

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Why economists can’t get elected

People think of economists as people who can’t agree on policies. To some extent they’re right, but here’s a list of policies that get widespread agreement among economists of very different political persuasions (with my comments in italics):

  • Eliminate the mortgage interest tax deduction. No-brainer for economists. The current policy taxes everyone, including renters, to subsidize borrowing by homeowners. Overall, it takes from the poor to give to the rich, and in an inefficient manner.
  • End the tax deduction companies get for providing health-care to employees. This has been distorting our medical care decisions for far too long.
  • Eliminate the corporate income tax. Tax income properly when people receive it, and you can do away with this.
  • Eliminate all income and payroll taxes. All of them. A consumption tax of some kind would be far more efficient, and fairer too, in the bargain.
  • Tax carbon emissions. They have significant and potentially civilization-threatening external costs, and this is a far better way to reduce them than the awkward regulatory schemes tried so far.
  • Legalize marijuana. In a world where alcohol is legal (and we all know how prohibition turned out), marijuana seems to have more benign effects, along with lower costs for the rest of society.

Now do you see why economists can’t get elected? Anyone who ran on this platform would anger the left, the right and the center. One more observation: Note how much of the list results from our current broken tax system. To find out more, look at the list or hear the NPR program that originated the list.

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Observations

Hugo: More than a feel-good kids’ movie

Hugo is a story about an orphan living secretly in the hidden places of a Paris train station in the 1930s following his father’s death. I won’t try to top all the fine reviews of this film, but will just throw a few extra points into the mix:

  • From the trailers, you would expect a feel-good kid’s movie. The actual film is way better than that.
  • You know how a film can come right up the edge of being goody-two-shoes, too good to be real, and then back away? This film does that instead of falling over the edge.
  • Who knew Sacha Baron Cohen was such a good actor? He does a great job as the Station Inspector, stirring unexpected sympathy for a character who’s otherwise just another officious cop-type.
  • A lot of films today are about breaking things, and I enjoy a good explosion as much as the next movie fan. But this is a film about fixing things (figuratively and literally), I loved its theme of restoration.
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Observations

About William Breit, Milton Friedman and poking skunks

The current Southern Economic Journal includes a tribute to my former History of Economic Thought professor, William Breit. In one of the articles Breit himself talks about the time he heard Milton Friedman speak on economic freedom.

Friedman’s formidable intellect left him the clear winner of a Q-and-A session, despite many hostile questions from the audience. But one of the potential questioners who remained silent was named Don Market. The day after the speech, someone asked him (now quoting from the article): ‘‘Mr. Market, you told us there were no intelligent conservatives. We waited for you to ask Professor Friedman a question that would prove your point. But you sat perfectly still. Why did you not challenge any of his arguments?’’ I listened intently for Market’s reply and have never forgotten it:

‘‘Listen, I’m a country boy raised on a farm. Long ago I learned that you don’t poke a skunk.”

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Observations

Star Wars: Boomer reflections

How’s this for 2011-12 holiday fun? Watching all six Star Wars films in order. And no, we didn’t do it all at one time!

My generation, the Baby Boomers, has a sentimental connection with Star Wars. The first film premiered in 1977, when we were young adults. It was followed by The Empire Strikes Back (1980) and Return of the Jedi (1983). The three-film prequel series premiered in 1999, by which time many of us had families and mid-career working lives.

Follow this link if you’d like to see a nice set of Star Wars reviews. Rather than attempt a recap of all those, I’ll just post a few thoughts from my perspective as a Boomer:

  • It’s hard to communicate just how special the 1977 premiere of the original Star Wars was. I was working at my first career job, as a reporter in Richmond, Va., when my news editor told me: “You’ve got to take your girlfriend to this new movie. It’s science fiction — and I hate science fiction — but I loved this movie.” So my girlfriend (now my wife of 34 years) and I went. It was a new universe, with Wookiees and lightsabers and Darth Vader. Previous space adventure films just hadn’t come close. We eagerly awaited each new film, and we were not disappointed.
  • The theater experience in general was vastly more engaging than anything else in our audio-visual lives in 1977. Today big-screen TVs with big sound provide a theater-like experience at home. In 1977, a 19-inch screen was considered large, the sound was poor, and many of the screens were black-and-white. Going to the theater for Star Wars pulled us out of our universe, figuratively anyway.
  • Star Wars, The Empire Strikes Back and Return of the Jedi hold up well, all these years later.
  • Today’s viewers seeing the films in order, starting with the 1999-2005 prequels, can’t enjoy the delight I felt on first meeting Yoda. That’s because the prequels show that Yoda is an influential and wise Jedi master. But when we Boomers first saw him on screen in 1980’s The Empire Strikes Back, we weren’t sure who he was. He looked like a comic relief character as he ransacked Luke’s supplies. It was a total surprise to me when I found out the little green guy was himself Yoda, the Jedi master.
  • Just as I was surprised to find out the little green guy was a Jedi master, I was stunned when Darth Vader told Luke, “I am your father.” Really. I didn’t see it coming. And today’s viewers, seeing the films in order, can’t feel what I felt in the theater that day — because they know Luke’s history from the start. (To my wife, who was way ahead of me in reading science fiction and fantasy at the time, it was obvious.)
  • About the three prequels, from The Phantom Menace to Revenge of the Sith: As much of a Star Wars fan as I am, I have to agree they’re not up to the quality of the original trilogy. In seeing the films again recently, however, I can offer up two good things about them: (1) The final prequel redeems the first two, by allowing us to see how Darth Vader could have become so evil; and (2) The wedding scene at the end of Attack of the Clones is beautiful in a tragic way. John Williams’s score, the staging, and the acting without dialogue (thank goodness!) combined to produce in me a sweet sadness, knowing that Anakin and Padme’s marriage was doomed.

My bottom line is that the six-film series is well worth watching, even if the first three films are flawed. I will leave the deeper questions about the franchise, including the theology of The Force and the elitist nature of the Star Wars universe, to others. To me it’s just a fantasy tale from “a long time ago in a galaxy far, far away.” But to young viewers today, I recommend seeing all six films, if for no other reason that to appreciate this part of the culture. We Boomers will always have a soft spot for Star Wars.