QUOTE OF THE DAY. Professor Munger, on organizing to limit positional arms races.

But, if lazy folks could form a lobby, and lobby for the benefits inherent in BLOCKING smart, energetic people from being able to work hard to give good signals, how much would that be worth? A lot! So, even lazy people might work on that. Or pay somebody to work on it for them.

The problem is that EVERYTHING [Cornell's Robert] Frank points out as a cost is FAR less costly than the rent-seeking orgy he wants to start instead. Giving out the bennies he thinks are "good public policy" would cause a riot of rent-seekers. "Make smart people talk slower." "Yeah, and they don't get to wash their hair. I don't wash my hair, so people who DO wash their hair have an unfair advantage. Legislate that away!

"Rent-seeking is what people do to obtain favorable regulation. The competition for the kind of benefits Frank wants to give out would DWARF, in terms of costs, the tiny effects he claims to be worried about.

More here.