In the book ‘predictably irrational’ Dan Ariely talks about how some of our decisions are based on comparisons with other alternatives, and in some situations it is best to have a decoy alternative to make the ideal alternative seem more valuable. An example is he doesn’t expect you to know how much a 6 cylinder car costs, but he expects you to know it costs more than the 4 cylinder model.
An example he gives is assume you are a Realtor selling a house. You want to sell house B instead of A. So what you do is you find a house that is identical to B, but has something wrong with it, and try to sell it for the same price as house B. So call the decay house house C.
House A costs 110k, House B costs 140k and House C costs 140k. House C is virtually identical to house B except it has a leaky roof and faulty plumbing. When the customer sees house C he may think ‘house B is a real bargain’ because it is like he is getting house C with a ‘free’ upgrade of a better roof and better plumbing.
Another issue related to this topic is keeping out a threat. One of the arguments for having a strong labor movement is that other employers will be forced to offer better wages and benefits to keep the unions out.
Assume you have two employers (employer A and employer B) and employer A has a union. The wages and benefits are slightly higher. As a result employer B becomes afraid that his employees will form a union, so he tries to cut them off at the pass by offering higher wages and benefits to his (non-union) employees. This is how social security was started in Germany, it was an attempt to placate the left to prevent the more radical left from gaining power.
The miracle of the invisible hand. If you don’t give people what they want, they will find someone who will. And if the ones who will give them what they want are a huge threat to you, you’d better placate those people.
So it seems in the US the moderate left (of which I consider myself a member) has been portrayed as the radical left by the media and conservatives. The fact that I believe in single payer, government programs, progressive taxes and a strong union movement gets me compared to communists. However, if we had real communists in the mainstream, then I wouldn’t look so bad. In fact I’d look more moderate and mainstream.
Which brings me to another political topic. The more insane and radical the GOP becomes, the more sane the old radicals become. Newt Gingrich was a radical once. However now he is ‘moderate’ because he is trying to restrain the Palin and Teabag branch of the GOP (who are the new insane radicals). However Gingrich was considered a radical by the standards of Goldwater, who hated the contemporary GOP. However in the 1960s Goldwater was considered a radical, which is partly why LBJ won with such massive majorities in 1964. So Goldwater was a radical in the 1960s and was opposed by the moderates back then. Then in the 1990s Gingrich was a radical and was opposed by the moderate Goldwater. Then in 2008 Palin was a radical and was opposed by the comparatively moderate Gingrich. I’m sure in 2025 the GOP will have a wing of people who look and act like Cletus from the simpsons, except they have swastika tattoos and carry guns. Compared to them, Palin will appear moderate.
So how radical a political position becomes is in part due to comparing it to other political position. Bill O’Reilly is fairly rational and sane compared to Palin. And sadly in 15 years Palin will probably be sane and rational compared to the GOP of 2025.
But anyway, if we had a truly radical left wing movement in the US (legitimate Marxism) it’d help more moderate leftists social democrats like myself. We’d appear more sane, moderate and mainstream (in comparison) and people in power would try to appease us to keep us from supporting the truly radical leftists.
Then again, the radical branch can alienate tons of voters from that entire point of view. Palin may may Gingrich look sane, but she also makes fence sitters terrified of the GOP. So who knows.