What economists can learn from golf

Golf is a simple game but too mystified. It’s hidden from the public on manicured courses. It’s seen as a game for the elite and espouses class and status.

What was not unexpected from the Britons who introduced the game to Kenya? The high joining fees to clubs add to the mystery. And unlike soccer, golf is rarely broadcast live to the masses.

The game is simple. You hit a small ball into a small hole using irons, woods or a putter as the tools are called and with a given number of hits: three, four or five. Remember the pars?

If you get there with fewer hits, the better.  Add the number of hits, and you get your score.

The lower the score, the better. It’s close to the old “O” Level exams where one was the best grade and nine the worst.

Holding age constant, the more you play the game, the better you become. It logically follows that experienced golfers will play better. How do you equalise experienced and new golfers?

 Simple, track the performance of each golfer and give him or her a handicap index, a number that signifies how good you are at the game. The lower the number, the better you are. A handicap of five is better than, say, 16.The highest handicap is 54. 

The lowest can be below zero. Let me tax your mind: what would a handicap below zero mean in reality? Once the game is over, add all your scores in every hole and subtract your handicap.

Good golfers subtract less, bad golfers subtract more. That equalises them. Very ingenious!

Do you recall how boys' hands were tied (handicapped) in a football game with girls? It’s the same concept. Can we apply the handicapping system to economics?

In any economy, there are citizens who are better off than others.They are better endowed with higher IQ, better history or body size.

They have been exposed to opportunities earlier or even got an inheritance. If your great-grandfather was a graduate, you are way ahead of someone being the first to get to university in his family.

Think of a family that owns a building in Nairobi’s CBD versus a family owning a plot at Joska. Think of someone whose parents were both employed versus someone else whose parents have never worked and never went to school.

How do you equalise the diverse economic backgrounds? We can use the economic handicapping system.Taxation is an economic handicap. Those who earn a lot are taxed more to be close to those earning less or nothing.

Assuming tax is put to the right use, it brings equality, equity and inclusion. Tax, looked at positively, is a great equaliser. That is why stealing tax is an abomination.

Subsidies are another economic handicap. Services and goods from housing to food and education are bought at below market price by the disadvantaged members of society.

This was the idea behind bursaries and fertiliser subsidies. Farmers are subsidised to continue growing food even when they can’t break even. Government tops the farmer’s selling price ( subsidizes)  to ensure they don’t make losses.

Food security is a national priority. Recall guaranteed minimum return (GMR)?  Managing subsidies has too many vested interests, but it’s still a good handicap.

Devolution was a handicapping system to ensure even economically weak counties get some money. Remember the equalisation fund?  Let’s scrutinize CRA formula for its handicapping effectiveness. 

Affirmative action, where some marginalised groups are given preference in jobs or other opportunities, is another economic handicapping system.

It’s contestable who is marginalised. Why are women lumped together with youth?  You are free to suggest other economic handicapping systems or tools.

In developed countries, economic handicapping is well developed, including welfare money for the unemployed, subsidised loans, housing and food. But remember their economies are very formal and data is available.

The private sector also helps in handicapping through scholarships, corporate social responsibility, donations and other approaches.  The so-called black tax is also a handicapping system in a family setting.  Unfortunately seen as evil by the younger and pampered generation.

There is always the risk that economic handicapping will spawn dependency. It should be like golf handicapping; golfers are proud of better handicaps. Citizens, through their own efforts, should also try to improve on their economic handicaps and be less dependent on government or relatives.

The aim of economic handicapping is to have a more just, equal and stable society. Economic handicapping gives capitalism a human face. It’s best espoused by the social market economic system popular in Europe.

It combines free markets with social protection, ensuring maximum prosperity for all. What economic handicapping system shall we use as Kenya shifts from a middle-income to a high-income country in Vision 2063? Golfers are free to guess my handicap index from this write-up.