Friday 1 March 2013

How to Think About Social Issues: Tips 25-26


25. Do not hesitate too much to recommend the substitution of a better policy for a worse one just because the people who had benefited from the bad policy must adjust upon its repeal:
            Time and time again, proposals for a reasonable change in social policy are met with objections that fixate on the difficult adjustments that will have to be made by some people as a result of the change in policy. A common example of this has been one strain of objections to a cutting of the United States’ military budget. The objection goes something like this: ‘Granted that perhaps the current level of spending on the military is excessive and unnecessary. However, cutting the budget just like that is not so simple. Many regional economies in the country are heavily dependent on military activities. Also, this country currently has a difficult unemployment problem. Throwing people employed by the military industry out of work via budget cuts is thus not advisable.’
            
           While this objection is superficially plausible, it is actually strewn with fallacies. The first is that it violates tip #10 by focusing only on the seen benefits and neglecting the unseen costs of the policy. The government does not just create resources out of thin air. Either it takes resources directly from taxpayers or indirectly through deficit spending, which sucks up resources either through inflation or by diverting investment capital from the private sector to the government. These resources include labour. The employment and benefits generated by the military industry constitute the seen benefits of the policy of having a large military budget, but the employment and benefits that could have been generated had the resources been left in the hands of the private sector are the unseen costs of the policy.
            
           The reason I have created this tip is so that you can avoid another fallacy of this objection, even if the objection is modified so as to take into account unseen costs. The modified objection could run as follows: ‘Ok, I will grant that in the long-run, the private sector could probably make more productive and humane uses of resources and personnel currently dedicated to the military. Nevertheless, this does not change the fact that a great many people who have become dependent on the military industry for their livelihood will suffer. Hence, we cannot be too rash when advocating such cuts.’ It is true that people who have geared their economic activity towards the military industry will have to bear some adjustment costs, sometimes painful ones, if that industry should become less important. It is not true, however, that this fact constitutes a valid objection against changing a bad policy for a better one. Adjustment costs could well enter as a cost on your cost/benefit analysis of the policy change, but this does not mean that they should be the overriding consideration when the policy change is evaluated. People do not have an inalienable right to an unchanged, ‘stable’, economy. If short-term adjustment costs are the only objection that someone can raise against a policy change, it is generally safe to assume that their position has been defeated intellectually.

Proponents of slavery in the US South actually fell back on this objection when they had nothing else to say. They argued that it would be hard for slaves and slave-owners alike to adjust to a slave-less world. But this is a rather weak argument for slavery indeed, considering the wide array of arguments against slavery, ranging from the lower productivity of slave labour to the protection of a man’s right to pursue his own desires as an end in its own right to the monstrosity of the general principle that one man may lawfully subjugate another completely to his arbitrary will.
            
           Thus, next time you hear the difficulty-of-adjusting argument to defend retaining a policy, ascertain whether this is one of many arguments presented against changing the policy or is one of the only ones. If the former, it is probably best to consider it as a small to moderate cost of changing the policy. If the latter, know that the supporters of the policy are intellectually bankrupt, and don’t accept this argument as a trump card to block reasonable policy changes.


26. Don’t let the argument from restitution serve as a justification for perpetual bad policies:
            Another argument that is commonly used as a trump card to block reasonable policies is the argument from restitution. Proponents of programs such as affirmative action, welfare, ‘community development policies’, and foreign aid policies use and abuse this argument the most. Thus, a common argument for affirmative action policies goes something like this: ‘Affirmative action programs do not resemble discriminatory or racist policies and practices of the past at all, though they share some superficial resemblances. This is because affirmative action addresses structural inequalities in society and is a corrective measure for wrongs done to the group in question in the past. Because the group had been denied opportunities in the past, they have not been able to achieve the income level and educational achievements of more favoured groups. Thus, even though they are not actively and overtly discriminated against in the present, in practice they still are, thus affirmative action is a way of righting this wrong and making the economy fair to all.’
           
           There is something to this argument, namely that it is indeed true that those from wealthier families typically have more opportunities to educate themselves well and thus may have a better chance of landing themselves more desirable jobs. This core of truth to the argument does not serve as an overriding justification for affirmative action or other ‘compensatory’ policies for the following reasons though: First, from the standpoint of satisfaction of the consumer’s desires, the market economy does not resemble a game where everyone must ‘compete on a level playing field’ in order for it to be ‘fair’. Unless they manifest this desire voluntarily through their decisions to patronize or not patronize certain firms that they deem ‘fair’ or ‘unfair’, it cannot be assumed that the consumers particularly care about how ‘fair’ the market economy is. They typically want to satisfy their desires that are linked to exchangeable goods in the cheapest and most high quality manner possible. Forcing businesses to hire workers who they deem to be less value-productive than other available workers in the name of ‘fairness’ is not a path to economic efficiency in the eyes of the consumers.
            
           Secondly, ‘structural inequality’ arguments tend to violate the tenets of methodological individualism, dealing with aggregated ‘social groups’ instead. Thus, it is said that because groups such as women and black people were discriminated against in the past, they should be compensated in the present, at the expense of those groups who were favoured in the past such as white men. But a young white man growing up in an affirmative action environment actually received few of the benefits of ‘white men’ being favoured in the past and is saddled with all the costs of being discriminated against by affirmative action policies. It is assumed that somehow the fact that ‘white men’  benefited in the past is a benefit to the white man hit with affirmative action policies in the present (thus violating tip #21: assuming special interpersonal bonds between individuals that may not exist, in this case the racial and gender solidarity of white men.) I can imagine that a great number of young white men in the present do not feel greatly comforted by the fact that ‘white men’ as a group were favoured in the past (it is not even guaranteed that the parents of every young white man directly benefited from this past state of affairs). Rather, the individual white man is generally looking to do well for himself, and he is faced with onerous affirmative action discrimination.
            
           Thirdly, and most importantly, how do we know when all the ‘structural inequalities’ have been rectified and we can return to letting the employer hire and fire as he judges best? The ‘equal pay for equal work’ criterion is not a good standard because it is impossible to non-arbitrarily designate the work done by two different employees as ‘equal’ in the minds of their employers. Also, even if this criterion held to the arbitrary satisfaction of the observer, there could still be ‘structural inequalities’ preventing people of certain groups from even performing work that is ‘equal’ with that of other groups. Whenever a supposedly temporary compensatory policy such as affirmative action is proposed, it should be accompanied by clear criteria for when this policy, that would be unsatisfactory if kept permanently, can be ended. No such criteria has or could be suggested for these ‘structural inequality’ policies, except for perhaps a statistically-clear reversal of the relevant social groups’ socio-economic statuses, at which point it is possible that the newly ‘structurally unequal’ group could petition for affirmative action or other such policies for themselves. In practice, the ‘structural inequalities’ argument ends up providing justification for an endless series of redistributionist policies that will never reach their goal of ‘fairness’ and hence will never be repealed. Like the adjustment cost argument in the last tip, the ‘structural inequality’ argument or argument from restitution tends to be used as a fall-back argument for those who can’t justify their desired redistributionist policies with a more varied set of arguments.
            
           Thus, beware of arguments from restitution that try to justify otherwise bad policies ‘temporarily’, that actually have no criteria for ever ending these bad policies. Even if you care greatly about making the market economy ‘fair’ and righting historical wrongs, and don’t particularly care about economic efficiency in the eyes of the consumers or freedom of association between employers and employees, the argument from restitution still should not be used, on its own, to justify an endless series of otherwise unsatisfactory redistributionist or discriminatory policies.

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