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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

The color of money

By Megan McArdle
Jun 13 2008, 7:26 AM ET Comment

Often, people who favor a policy change will claim that this change has no cost, because the existing policy doesn't work anyway. Opponents of torture claim that it never produces usable intelligence; opponents of high taxes claim that they don't raise any additional revenue.

Usually, these claims are ultra-premium high-test piffle. However, I am happy to report that in this case, I think I actually can make such a claim:

When we approached the agency we offered to pay the full fee and take whatever baby came our way. The social workers told us that we had to choose a program and that given that we were open to “any race,” we would be placed with a black child because there were fewer waiting parents in that program.

“You may as well get the fee break,” one told us. “Because if you are open to adopting a black baby, you will get a black baby.”


"Black babies are worth less than white babies" is a signal that society shouldn't send. Luckily, it doesn't have to. The main cost of adopting a healthy American baby of any race is non-financial; it is the queue. A couple determined to have a white baby will wait years. Babies of other races are in bigger supply, a side effect of black poverty and white affluence. It's unlikely that lower fees result in much shift in peoples' willingness to adopt transracially, so eliminating the fee break would have little cost.

On the other hand, getting rid of the fees entirely would probably be a good idea. If we want to take more money from affluent people, we should do so through the progressive income tax, not through charging people for the privilege of adopting babies that the state would otherwise have to care for. And there's no reason to set up financial barriers to adoption by loving parents of limited means.

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