Public choice economists emphasize the process by which we select political leaders. Electoral and voting rules influence the type of leaders we get. Institutional economists agree and go one step further. Who we choose matters less than the environment we place them in. Leaders, regardless of their personal qualities, respond to the incentives that surround them. The ultimate policies, therefore, largely conform to those incentives. From this perspective, it’s important to adopt institutional incentives for leaders to promote policies oriented toward economic growth and provide the option to flourish.

The same principle applies to the private economy. Productivity is crucial, and higher IQ often correlates with greater productivity. Yet, genetic endowment—including IQ—is beyond individual control. Many other determinants of productivity are not exogenous when we can affect policy. Let’s adopt policies that allow individuals with lower IQ to act productively as if they had higher IQ. Protecting the freedom to contract and private property rights creates conditions whereby even those at the lower end of the cognitive ability distribution can thrive. These principles expand their opportunities. Market signals give them valuable feedback on their activities and enable them to contribute to the economy.

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