Word for Wednesday: Consequentialism definition

Consequentialism is the claim that we should judge the rightness of an action by the desirability of its consequences, as opposed, say, to its conformity with some concept of virtue or honour. As I mentioned last week, it is very closely tied to utilitarianism and is most appealing as a criterion for public policy rather than individual ethics or jurisprudence.

The big question in relation to consequentialism is how we assess the consequences of an action. And as usual there seems a huge divide between economists (particularly decision theorists) and philosophers on this point.
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Sharon on the road to Damascus

Like Gary Sauer-Thompson, I’m still trying to interpret Sharon’s apparent conversion to the cause of Palestinian statehood, after months in which he appeared to be doing his best to derail the “roadmap for peace”. Can Bush have really applied the pressure to achieve this? Or is it just another tactical retreat? We’ll have to wait and see, but for once there seems to be some ground for optimism

Fat and Mean

Ken Parish posts on the latest executive pay scandals, with plenty of detail. I have a couple of thoughts arising from this.

The first is that it’s not long since we were all being told about the new lean and mean corporate model, with its slimmed-down management. As recently as 1996, when the late David Gordon wrote Fat and Mean, pointing out that the opposite was true, it was correctly viewed as a contrarian attack on the conventional wisdom.

The second relates to the rhetoric about risk and return that still dominates much public debate. I remember reading some years ago that, contrary to this rhetoric, the income risk faced by senior executives was about the same, in proportional terms, as that faced by ordinary workers. The comparison by now must be massively in favor of the bosses. Once you’ve got a CEO-type position, you effectively have a job for life, with or without duties. Even if you get booted out the next week, you’re still paid for the rest of your life and beyond. The fact that virtually every CEO employment contract contains provisions of this kind speaks volumes about attitudes to risk

Reagan and consequences

In posting on utilitarianism and consequentialism a while back, I meant to get on to some relevant implications, but got sidetracked into some interesting disputes with political and legal philosophers. There’s a lot I need to do to shore up my position on the issues raised, but blogging is nonlinear, so I’m going to jump straight to some conclusions, with the plan of filling in the gaps later.

My first observation is that sensible use of consequentialist reasoning requires that we evaluate decisions in terms of the outcomes that could be seen as possible when the decision was made (preferably with probabilities attached, but that’s not always feasible) rather than on the basis of the outcome that actually took place.

To give an example, let’s suppose, as is commonly claimed, that Reagan’s military buildup was designed to force the Soviet rulers to undertake a matching buildup, wrecking their economy and thereby hastening the downfall of Communism. Such a policy obviously entailed a somewhat higher risk that the arms race would lead to nuclear war between NATO and the Warsaw Pact. I’ll be conservative and make the increase in risk one percentage point over the decade or so of the buildup. And I’ll suppose that the arms race brought forward the collapse of Communism by a full decade.

Considered in advance, and with these assumptions, Reagan’s policy was clearly a bad one. A nuclear war would have killed hundreds of millions of people and even a one per cent chance of such a disaster was too terrible a price to pay for the near-certain benefit of an early end to Communism.

Note that, if you focus on actual consequences, you’ll almost always support gambles of this kind. On the assumptions above, there’s a 99 per cent chance that the policy will pay off, as it did.

Today's Fin

Lots of interesting stuff in today’s Fin
(subscription required). Tony Harris criticises the view that success justifies the lies that were used to get us into the war on Iraq (I’ll have more to say on this later).

The editorial, on the Free Trade Agreement with the US and its implications for copyright, for once agrees with me (and Kim Weatherall)

It would be a dismal irony if we were to sacrifice free trade in legal CDs, DVDs and software in the name of free trade.

. I said almost the same thing three months ago.

Also in the same area is a piece by the main supporter of the FTA, Alan Oxley, attacking Kyoto. Oxley doesn’t argue the merits. He just says that since the US is staying out, economies like those of Canada and Australia, closely tied to the US, will lose competitiveness by signing. Interestingly, nothing has been said about Kyoto in relation to the FTA, but I bet we are foreclosing a lot of options, such as taxes on carbon-intensive imports from nonsignatory countries (that is, the US).

Finally, there’s a letter from Michael Stutchbury, editor of the Oz, complaining that it appears that Fairfax columnists get a bonus every time they attack the Australian. If only!

Move completed

At the weekend, we unpacked the last box, and moved the last load of stuff between home and office. It’s almost six months to the day since we moved to Brisbane, and I can now declare the move complete. In my experience, six months is a bit better than average. I don’t plan to test my moving skills again any time soon, though. Brisbane is definitely the place for me.

PS: Talking of moves, I see that Tim Blair has made the move to MT. Well done!

Monday Message Board

It’s time for the Monday Message Board, where everyone gets to have their say on any topic (civilised discussion and no coarse language please).

I’ve managed to avoid comment on the downfall of the GG, so perhaps commentators will fill this glaring gap in my blog. But, as always, comments on any topic are welcome.

Tuesday update Lots of suggestions for a new GG. I’m backing Reithy myself.

And the other subthread relates to Collingwood-hatred. Joining in from his new site, , Tim Blair asks “Why do they hate us”, and promptly demonstrates why, by linking to this shameless piece of Victorian imperialism.

What I'm reading

When All Else Fails: Government as the Ultimate Risk Manager by David Moss and The New Financial Order: Risk in the 21st century by Robert Shiller. These are both important books and I plan to review them in the near future.

I also watched Enigma on DVD, expecting it to be based on some combination of the breaking of the eponymous German code and the life of Alan Turing. Instead, it was dominated by an absurd spy thriller/action hero subplot – I should perhaps have been warned off by Tom Stoppard’s credit for the screenplay.

But watching this movie prompted a question. In movies of this kind, it’s necessary that the audience have some idea what’s actually involved in codebreaking (or similar esoteric devices). Surely there must be some other way of conveying the relevant info to us than to have one character ask a lot of dumb questions, giving another (usually the hero) a chance to deliver a lecture.

The innocent and the guilty

Tim Dunlop links to this report in the Christian Science Monitor providing survey estimates that the number of civilian deaths in the war on Iraq was between 5000 and 10 000. (Thanks also to Jack Strocchi who alerted me to the same piece).

Tim quotes the following claim from Bush

With new tactics and precision weapons, we can achieve military objectives without directing violence against civilians. No device of man can remove the tragedy from war; yet it is a great moral advance when the guilty have far more to fear from war than the innocent.

and implies that these figures may prove him wrong.

My view is that, if serving in the Iraqi army and obeying orders makes you ‘guilty’ then Bush’s claim has been validated. I think it’s clear that the number of Iraqi soldiers killed was many times greater than the number of civilians, and must have been in the tens of thousands. Many of these ‘guilty’ soldiers were conscripts, and all faced the threat of being shot for desertion if they did not fight. And civilians are still dying in large numbers as a result of the chaos produced by the war, including crime and breakdown of basic services.

The decision to overthrow Saddam by force and to impose a government of occupation has imposed a huge moral responsibility on the countries that took that decision. As I’ve argued previously, producing a sustainable Iraqi democracy will take years of effort and cost tens of billions of dollars. The US was prepared to spend the billions on war, but it has budgeted almost nothing for the peace.

The US slowdown

I missed this piece by Brad de Long when it came out in December last year, but Jack Strocchi sent it to me recently, and I thought it would be worth responding to now. The headline The Slow Countries and lead-in

US productivity keeps growing – right through the bust. So what’s wrong with Europe?

give the general flavor. Here and elsewhere, Brad focuses on technology-driven change in ICT-producing and ICT-using manufacturing manufacturing has grown even faster, and argues that the US has proved clearly superior to Europe in this respect. To the extent that he’s a pessimist, Brad worries about the fact that, with slow output growth, all this productivity growth is driving employment down in the US. Brad suggests that Europe may catch up to the US in the next growth cycle, but worries that ‘something in the water’ (that is, a combination of restrictive labor market policies and deflationary macro policies) will prevent this. I disagree with a lot of this and, to sharpen things up, I’ll argue for the polar opposite case, that we’re going to see the US converging towards Europe in important respects over the next few years.
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