Archive for September 22nd, 2009

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More on Michael Sandel, justice and price gouging

September 22, 2009

Michael Giberson

Yesterday I commented on Michael Sandel’s book, Justice, and on his discussion of price gouging I hoped that Sandel would go deeper into his ideas about justice and price gouging, but the book’s index suggests that the introductory chapter is all he has to offer specifically on price gouging.

In re-reading parts of his price gouging discussion, I was particularly struck by Sandel’s rhetorical move here:

… So to decide whether price-gouging laws are justified, we need to assess these competing accounts of welfare and of freedom.

But we also need to consider one further argument. Much public support for price-gouging laws comes from something more visceral than welfare or freedom. People are outraged at “vultures” who prey on the desperation of others and want them punished — not rewarded with windfall profits. Such sentiments are often dismissed as atavistic emotions that should not interfere with public policy or law. As Jacoby writes, “demonizing vendors won’t speed Florida’s recovery.”

But the outrage at price-gougers is more than mindless anger. It gestures at a moral argument worth taking seriously. Outrage is the special kind of anger you feel when you believe that people are getting things they don’t deserve. Outrage of this kind is anger at injustice.

Since I believe, more or less, that “such sentiments are … atavistic emotions that should not interfere with public policy or law,” I was interested to see Sandel’s counter to this view.

Unfortunately, he doesn’t offer a counter argument. Instead he makes the claim that outrage points to the presence of injustice, and highlights an underlying moral sentiment. He follows up by pointing out that societies can encourage virtue by penalizing vice.  The point, he said: “By punishing greedy behavior rather than rewarding it, society affirms the civic virtue of shared sacrifice for the common good.”

The problem with this kind of argument is that it takes the underlying moral sentiment as somehow foundational when in fact such sentiments are problematic. A real question here is whether a particular moral sentiment is in fact a virtue (i.e., a belief or behavior that will make the world a better place) and not an atavistic emotion (that is to say, some sort of old fashioned belief or feeling that ought to be discarded).

Sandel says outrage at price gougers is a moral reaction to injustice that highlights a virtue which should be promoted at the expense of price gougers’ freedom.  But the list of things causing outrage is long and various: alphabetically – alcohol, bigamy, cannibalism, … , same sex marriage, taxation, usury, vivisection, X-rated movies, Yankee imperialists, and zone pricing.  In each case I suspect a moral sentiment is involved, at least for the outraged persons, but we need not rush to the conclusion that society should affirm the associated (claim of) civic virtue.

The interesting question, to me, is which moral sentiments ought to be affirmed and which ought to be discarded? Sandel raises the issue of morality and justice in price gouging, but (if the book’s index is complete) he doesn’t follow the argument into what I think are the most difficult and interesting questions.  Maybe his answer is implicit in other discussions in his book, but now I’m less inclined to buy it and find out.

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Energy Secretary Steven Chu: Not exactly making friends and influencing people

September 22, 2009

Michael Giberson

From WSJ Environmental Capital:

When it comes to greenhouse-gas emissions, Energy Secretary Steven Chu sees Americans as unruly teenagers and the Administration as the parent that will have to teach them a few lessons.

Speaking on the sidelines of a smart grid conference in Washington, Dr. Chu said he didn’t think average folks had the know-how or will to change their behavior enough to reduce greenhouse-gas emissions.

“The American public…just like your teenage kids, aren’t acting in a way that they should act,” Dr. Chu said. “The American public has to really understand in their core how important this issue is.”

I’ll resist engaging the paternalism that oozes from Chu’s choice of metaphors, and instead suggest to Dr. Chu the particular value of markets and prices in coordinating the actions of “average folks [lacking] the know-how or will to change their behavior.”  In fact, I’ll more than agree with Chu, I’ll go beyond him.  It isn’t just average folks – no one knows everything that is needed to stabilize the climate in the recent historical range for the same reason that no one knows everything that is needed to make a pencil (as per Leonard Read) – not Presidents, nor Congress, nor Nobel prize winners, nor anyone else.

Markets can coordinate actions even in cases in which no one person has the “know-how or will to change”, though admittedly when dealing with climate stabilization issues creating a useful market will be complicated.

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Life imitates art: Nissan to give electric car a “beautiful and futuristic” noise

September 22, 2009

Michael Giberson

From the LA Times car culture blog Up to Speed:

LeafA campaign backed by automakers and some lawmakers to make electric or hybrid cars noisier in a bid to increase safety for pedestrians and cyclists has taken a strange, “Blade Runner”-type twist.

Nissan sound engineers have announced that the Leaf electric car set for release next year will emit a “beautiful and futuristic” noise similar to the sound of flying cars — or “spinners” — that buzz around 2019 Los Angeles in Ridley Scott’s dystopian thriller based on a Philip K. Dick science fiction novel.

“We decided that if we’re going to do this, if we have to make sound, then we’re going to make it beautiful and futuristic,” Toshiyuki Tabata, Nissan’s noise and vibration expert, told Bloomberg. “We wanted something a bit different, something closer to the world of art.” (Links and LEAF image from source.)

The article points out that some people think we’ll download sounds for our future electric cars like we currently can download ringtones for phones. The Blade Runner police cruiser is pictured below, but if I’m going to get a futuristic movie-based car I’d rather have one of the Audi’s that Will Smith drove in I, Robot.

Can I get one that plays “Theme from Shaft”?

(Related story on Slashdot via Marginal Revolution.)

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