Category: Economics

Imagine I am the CEO of a corporation whose factory farming practices drew the attention of the Humane Society and legislation has now been proposed to reign in my cruel excesses. If I appeared in a video complaining about the Humane Society forcing me to be less cruel and this would have a tiny impact on my vast wealth, few people would be sympathetic. If I was smart and evil, I would use astroturfing instead of honesty. Astroturfing involves concealing those behind a message or organization to make it seem that it arose and is funded by grassroot participants. In this imaginary scenario, I could hire a company to lay down some AstroTurf for me.

 While astroturfing can be a complicated, it usually involves three basic techniques. The first is using positive names for the shell organization(s). For example, my Astroturf organization might be called “Friends of Friendly Farming”, which is much more appealing than “Cow Cruelty Crusaders.”

A second technique is using commercials depicting the “common folk” who just happen to be extremely concerned about the issue. For example, my commercial might feature a mother venting her rage that meat would be unaffordable for her family if the wicked Humane Society had its way.

The third and key part of astroturfing is that those behind it remain anonymous. After all, if people knew that I was behind Friends of Friendly Farming, they would find it less appealing. Since astroturfing is inherently deceitful, it would seem to be immoral. But what, if anything should be done about it?

The use of deceptive names is unethical because of their rhetorical influence over people who might not otherwise support the group if its name matched its purpose. Going back to my example, most would find “Friends of Friendly Farming” appealing. But most would not be won over by “Make Sure Mike Keeps Making Money by Being Mean to Animals.” This technique is like advertising and labelling unhealthy junk food made in China as patriotic, healthy, “Yankee Snacks”. That is, it is deceit. However, just because something is unethical does not entail that it should be illegal.

While the First Amendment does not explicitly protect the right to deceptive speech, laws aimed at requiring honest naming for groups would seem unlikely to withstand scrutiny. There are also practical concerns about enforcement and the potential for abuse of such laws. For example, Republicans would presumably use such laws to insist that all liberal and moderate groups label themselves as “Woke Marxist Transgender Anti-American Vermin.”

 There is also the problem of sorting out whether terms, especially value terms, are being applied correctly. Value terms are especially challenging, given the extent to which even good faith disagreement about them exists. For example, determining whether a group called “Righteous Americans for Righteous Justice” is righteous and for righteous justice would be difficult. As such, while the use of intentionally deceptive names is unethical, it should not be illegal.

The use of dishonest and deceptive commercials is also unethical. They are like listing false ingredients on a food label to get people to buy it. It is also like catfishing. This is when a person pretends, online, to be someone desirable as part of an intentional deception. As with deceptive names, the use of actors portraying “common folk” with strong views on the issue is probably protected by the right to free expression.  There is also the fact that politicians favor allowing considerable leeway in certain deceptive practices, usually determined by which industry is bankrolling their re-election.  

As noted above, the essential quality of astroturfing is that the real parties remain anonymous, hidden behind an appealing shell. In addition to being unethical, this anonymity makes it difficult to assess the case made by those speaking for the anonymous entity. This is because the identity of the source of a claim is necessary to assess the credibility and possible bias of that source. While claims obviously stand or fall on their own, the identity of the source is critical to the practical matter of judging claims.

While there might be a right to deceptive (or persuasive, if one prefers) speech, there is not a right to anonymous speech. Requiring those funding groups and ads to identify themselves does not limit their right of free expression and it serves, as noted above, to protect the right of the listeners to properly assess the claims intended to influence them. Naturally, there are cases in which anonymous speech is morally acceptable—such as in oppressive regimes.

Those who engage in astroturfing might claim they would be harmed if their identities were known. After all, they want to be anonymous because they believe that if people knew their identities, then their efforts at persuasion would be less effective. As such, not being allowed to remain anonymous would harm them.

The easy and obvious response to this is that people do not have a moral right to remain anonymous simply because people would be less likely to be persuaded if they knew their identity. Using an analogy, a company wanting to sell dog meat could not justly claim it would be harmed if it was not allowed to hide the identity of the meat. In such cases, the right to know trumps the right of free expression. As such, it would be reasonable to have laws that forbid such anonymous funding. Naturally, moral exceptions can be made in oppressive countries that engage in unjust persecution.

Despite the American myth, upward mobility is limited and most of us will die in the class we were born into. Part of this myth is the often-true story that college helps people move up the economic ladder. My family fits this narrative. My father’s parents did not finish high school as they had to take jobs in a shoe factory to help support their families. My father finished high school, got a master’s degree, taught high school for years and after his first retirement taught mathematics at the college level. My mother also has an M.A. My sister and I went to college, and I ended up getting my PhD and staying forever as a professor. Because of my family story, I support college education for those who want it.

While college has never been cheap, the increase in the cost of higher education has outpaced inflation. The reasons are clear. First, many states have disinvested from public higher education. Some of this leftover from the last time the financial elites burned down the economy, but most of it is politics. Some of this is ideological: Republicans tend to oppose funding public colleges, preferring to channel money into private profits. There is also the practical reason that weakening public education can push students towards for-profit colleges who have lobbied Republicans and Democrats. With less public support, more of the burden falls on students and their families.

Second, there is massive administrative bloat. Some of this bloat is the number of administrators. For example, while there used to be just deans, there are now assistant deans and associate deans. There are also assistant provosts and associate provosts, and an impressive number of vice presidents at many universities.

 Some of the bloat is due to burdens imposed by the state, such as assessment and various education laws. Some of it is due to the obsession with remaking colleges into businesses. In addition to having well-compensated executives, schools now have marketing departments who talk about “the brand.” There is also the tendency of bureaucrats to expand their bureaucracy. Currently, schools have entire cadres of administrators with no direct connection to education. Despite, or perhaps because of, the increased number of administrators, more administrative tasks are assigned to faculty. This can require hiring more people to teach as their teaching time is devoured by administrative work.

In addition to the ever-increasing number of administrators there has also been a significant increase in their salaries, especially at the higher levels. University presidents can have salaries close to a million dollars and bonuses are common. This is also a result of the business model: high pay “management” ruling over lower pay “workers.” While administrators make the tired old arguments that top money is needed to attract top talent from the private sector (usual business), the same arguments rarely apply to faculty and other employees. Presumably because faculty are not as important to the mission of the university as administrators.

Third, there is the cost of facilities and amenities. Some of this expense is reasonable: smart classrooms are more expensive than the traditional classroom. Other luxury items mainly serve to drive up costs.

Since college provides a way to go up the ladder or at least get a strong grip on a rung, it is important to address the problem of high costs. While one solution has been to make colleges “free”, this runs into the obvious problem that there is no such thing as free college. “Free” college just shifts the cost. This shift can, however, be morally and economically justified—but the discussion needs to be honest about who is paying.

A less drastic solution is for states to return to investing in education. This was once seen as a good idea s as money spent on students was returned many times over as taxes and had many non-economic positive returns on the investment. Valuing helping people upwards does run against current trends, which is to funnel money upwards towards those who already have the most money

It would also help if the state reduced some of the imposed administrative burden on colleges. While this would have a negative impact on those employed in these administrative offices, it would help reduce the cost of education. The challenge is, however, sorting out which administrative burdens to lessen. Reducing administrative positions and salaries would also help.

The number of administrators could be brought back to the older ratios of administrators to everyone else and their salaries could be reduced to more closely match those of faculty. While it could be argued that this would cut down on the top talent, there are some obvious responses. One is that education attracts top talent faculty who are willing to work for relatively low salaries compared to what they could get in the private sector. While detractors of professors often think that people teach or engage in research at colleges because they are unable to get jobs in the private sector, most faculty chose the academic life. This is for a variety of reasons, ranging from the love of teaching to the difference in culture between the academy and the corporation (although this difference is shrinking). So, if the administrator’s argument about having to pay top dollar for top talent were good, then faculty would be terrible. Another is that various scandals and problems have shown what these top dollars sometimes buy.

Finally, schools can also cut their spending on facilities and things that are not relevant to their educational mission. There are, of course, other possibilities but these would be a good start to make college more affordable.

 

Back in 2018, President Trump proposed executing certain types of drug dealers as a solution to the opioid epidemic. As Trump remains Trump, it is likely he will make a similar proposal when he returns to the White House. But this does raise the issue of whether executing drug dealers is a good way to address drug addiction. Put crudely, can the United States kill its way out of this problem.

From a practical standpoint, a key question is whether executing drug dealers would reduce drug addiction in America. It will, of course, be assumed that the CEOs of pharmaceutical companies manufacturing and distributing opioids will not be executed. For those interested in a career in drug dealing, the best option is to get congress to legalize your dealing. The second best is to run your drug dealing as part of the legal business of your large corporation. This way you will probably never do any time no matter how much you do crime. At worst, you’ll be forced to pay a percentage of your profits in a negotiated settlement.

Intuitively, execution could impact addiction. As a great philosopher once said, “if you kill someone for doing something, they won’t do that again.” Killing drug dealers would reduce their numbers and could reduce the extent of drug addiction in America. This would require killing new dealers if they stepped in to replace the dead ones, but this is a practical problem in the logistics of killing.

There is also the deterrence factor. On the face of it, one might believe the threat of execution would deter people from dealing drugs. This assumes drug dealers are suitably rational actors, and their calculation of the risks and benefits will guide them to stop dealing. This would also assume that they have better options available. Alternatively, it could be argued that fear of execution would suffice to deter them. People do fear death and try to avoid it. As such, one could conclude that we could kill our way out of this problem. However, we do not need to rely on speculative arguments about how potential drug dealers might respond to threats of execution. We can look at the data about the effectiveness of the threat execution as a deterrent.

We have extensive data about the death penalty, thanks to America’s enthusiasm for killing people. The evidence is that it is not an effective deterrence, which runs contrary to what intuitions about death and threats of death would suggest. So, it seems unlikely that we can kill our way out of this problem. In addition to the practical issue of whether this approach would work, there is the moral question about its ethics.

On the face of it, the moral issue has been settled by the practical issue: if the death penalty would not deter drug dealers, then the deterrence argument does not morally justify executing them. However, the retribution argument remains: killing drug dealers could be morally justified as retribution for their crimes.

On the one hand, this does have some appeal. Drug use does result in some deaths, and some of the blame for some deaths can be placed drug dealers. If a business knowingly provides a dangerous product to customers, then they are morally accountable for at least some of the harms. This is true in the case of legal products, such as tobacco and prescription opioids, and especially true for products that are illegal because they are harmful, such as illegally trafficked opioids.

While drug dealers do deserve punishment for distributing harmful products (such as tainted drugs), the punishment must fit the principle of proportionality: the punishment must be warranted by the severity of the harm done in the crime.

A drug dealer that intentionally sold contaminated products that killed users would be directly responsible for those deaths. The same would apply to a company that knowingly sold fatally flawed legal products that killed people, such as defective cars. Obviously, the criminal could face legal consequences for their crimes, but from the moral perspective, the legality of the actions is not the primary concern. It would be causing death that matters morally. It would be these case that would most plausibly merit execution, on the principle that the punishment (death) should match the crime (causing death). However, selling someone a fatally defective product is morally distinct from directly killing them, such as by stabbing them to death. As such, executing those who knowingly sell defective products that could cause death would raise moral concerns.

Drug dealers probably do not intentionally sell defective products to kill their customers, if only because they want repeat business. But illegal drugs are often harmful, and this is morally relevant. The harms of illegal drugs can be numerous, ranging from health issues to death by overdose. Many legal products, such as alcohol and tobacco, are also harmful. As such, the question is whether it is morally acceptable to execute someone for providing a harmful product that can potentially kill the user. Once again, the legal issue is distinct from the moral—after all, all any drug could be legalized tomorrow, but this would not change the basic moral concern. The easy and obvious answer is that while knowingly selling harmful products is wrong, this level of wrongness does not merit execution. As such, killing drug dealers for dealing drugs would be no more ethical than killing the owners of Heineken or R.J. Reynolds for distributing legal products that cause significant health issues and contribute to the ruin of many lives.

While analogies, like cars, always break down eventually, they can be useful. While running, I thought about my injury-induced lack of racing trophies and my oxygen deprived brain tied this into the division of goods in capitalism. Hence, this analogy between running races and capitalism.

Both racing and capitalism involve competition, and this results in winners and losers. Winners are supposed to be rewarded while losers are expected to reflect on their defeat and try harder next time. When planning a road race or managing capitalism, those in charge must address the nature and division of the rewards. In the case of a road race, the race director must pick the prizes and decide such matters as whether there will be age group awards and how deep the awards will go. In the case of capitalism, those in charge decide how the rewards will be divided by laws, policies and practices.

While there are many ways to divide rewards, there are two broad approaches. One is a top-heavy reward system that yields the bulk of rewards to a few winners. In the case of a road race, this occurs when all the prizes go to the top three runners or even just the first-place finisher. In the case of capitalism, this will involve most of the rewards going to the very top winners with the few leftovers divided among the many losers.

Another approach is to spread the rewards more broadly among a larger base of winners. For example, many races divide up the groups by age and most races have male and female divisions. In the case of capitalism, such an approach would give less to the top winners and divide more among the other winners relative to approach that only rewards the top winners. For example, under such an approach successful small businesses and successful middle- and lower-class people would get more of the rewards. This would, of course, mean less for those at the top of the pyramid, such as the biggest corporations and billionaires. Success would still be rewarded, but there would be more effort in spreading the rewards across different levels of success (and economic classes).

One argument in favor of the top-heavy systems of capitalism is to contend that a broader division of the rewards would be socialism, and this would destroy competition. But this is not the case. A broader reward system would still be capitalism, it would just have a broader division of the rewards. Returning to the race analogy, a race that has a broader division of prizes is no less a race than one that offers prizes only to the first-place finisher. Competition remains, the difference is that there will be more winners and fewer losers.

It could be argued that having a broader division of rewards would reduce competition and somehow make things worse. In the case of a race, it might be claimed that runners would think “why should I train hard to win the whole race when I can get a prize for being third in my age group?” In the case of capitalism, people would presumably say “why should I work hard to try to be the biggest winner when I can get decent rewards for just being successful?”

While I will not claim that no one thinks that way, most runners still train hard and race hard regardless of what sort of division of prizes the race offers. The same would seem to hold true of capitalism. People would still work hard and compete even when there was no massive prize for a few and little for everyone else. In fact, people who know they have little or no chance at the biggest prize would presumably compete somewhat harder if they knew that they had at least some chance of getting a decent return on their success. Also, in the case of capitalism, people already work hard for small prizes when they know they have no chance of ever getting the biggest prize or even a bigger reward. As such, unless they are delusional or irrational, they are not motivated by having a top-heavy reward system. Survival provides adequate motivation for those of us who are not in the top .1%

At this point, one might bring participation awards, when everyone gets a medal for showing up. The economic analogy would be a form of socialism or communism in which everyone gets the same reward regardless of effort. This, many would argue, would be terrible and unfair.

In the case of races, runners still compete even if everyone gets the same prize (be it the same medal or nothing at all). Many people just love to compete for the sake of competition or race for reasons that have nothing to do with prizes. It would hardly be a stretch to think that this view also extends into the economic realm. There are people, such as open-source developers and community volunteers, who work hard for no financial rewards. But there is certainly a reasonable case that people need to win prizes to be really motivated to do anything.

I must admit that while I will still run hard in a race that has no prizes, I do love competing for them and prefer races that offer competition-based rewards. I am tolerant of participation medals because someone who runs a race has accomplished something meaningful. A race can have both participation medals and prizes for winning. In the case of an economy, this would be a competitive system that offered better rewards to the winners, but also provided those who are actively participating in the economy with at least a minimal reward. One area in which this analogy breaks down is that the economy has people who cannot participate (the very old, the very young, the ill and so on) and it would be a much more serious matter for these people to get nothing than it is for people who do not finish the race to not get their participation medals.