POLI 101: October 6-8, 2014 Lecture #10: What Lies Behind Policy?
Inflation So, what is it? An increase in the price of goods What causes it? Goods become harder to provide at a given price Demand increases Supply becomes increasingly hard to come by Oil and gas prices, for example Go up during summer months In this case, inflation implies drop in the standard of living
Inflation But also drop in the value of a dollar Too many imports, not enough exports More dollars are printed by the government More dollars for a given amount of goods means the value of the dollar declines Helps some, hurts others Wages increase Price of goods go up, because the workers are being paid more.
Corruption What is it? When do you consider a politician corrupt? How much do you consider corruption a problem in America?
Abe Ruef The Curly Boss of San Francisco Power behind San Francisco City Hall in early 20 th century. Bribed City Hall for sweetheart business deals, including the famous San Francisco Trolley System.
Artie Samish This is my legislature. How are you, Mr. Legislature? Select/Elect and Shrimp Hours. The Secret Boss of California Governor Earl Warren called him the most powerful man in California
Duke Cunningham
Corruption in Politics Abe Ruef Sent to Jail Artie Samish Sent to Jail Duke Cunningham Sent to Jail The United States ranks 19 th cleanest out of 174 countries on a corruption index published by Transparency International.
Corruption
Corruption
Corruption So, what causes corruption? We don t exactly know, but it seems to involve: Institutions Culture Effects Makes doing business more costly Steers resources away from where they should be going unfair
What lies behind policy? Questions of justice and effectiveness Effectiveness The market vs. governmental authority
Market Successes Why the market? Efficient Supply/demand guides the process well Fair? Those who want something the most can get it Produces knowledge through the price system Allows people to make their own choices The market does a really good job of providing toothpaste and yogurt.
Market Failures Market Breakdowns Monopolies Cartels Cases of individual rationality, collective irrationality Prisoner s dilemma Goods and services where the market has difficulty containing costs Health care
Market Failures Externalities: a side effect or consequence of something that is not reflected in its price. Negative externalities Pollution Noise Positive externalities Education Trust Markets tend to over-provide negative externalities and under-provide positive externalities
Market Failures Public Goods Tragedy of the commons Free rider problem
Justice and the Law What s the difference? What is justice to you? Equality in what sense? intelligence? contribution? wealth? identity (ethnicity; gender; nationality)? Fairness what is fair? Roll of die Market result Needs based We have to know what is just, so that we may know who gets what, and who must do what.
Justice and the Law Which comes first? Do we create our own rules of morality and justice? Or are they in some sense natural? Let s consult a couple of our old friends.
What does Hobbes think?
Hobbes: The Law comes first. For Hobbes there is neither right nor wrong before the creation of the law and an executive to enforce it. Therefore before the names of just, and unjust can have place, there must be some coercive power, to compel men equally to the performance of their covenants, by the terror of some punishment, greater than the benefit they expect by the breach of their covenant... Hobbes
What does Locke think?
John Locke: Justice comes first. For Locke there is right and wrong even before the creation of laws. We have access to these natural laws by using our reason. (Conscience) The state of nature has a law of nature to govern it, which obliges every one: and reason, which is that law, teaches all mankind, who will but consult it, that being all equal and independent, no one ought to harm another in his life, health, liberty, or possessions...
The Good Samaritan A certain man went down from Jerusalem to Jericho, and fell among thieves, which stripped him of his raiment, and wounded him, and departed, leaving him half dead...a certain priest...passed by on the other side. A Levite...passed by on the other side. But a certain Samaritan, as he journeyed...he had compassion on him. And went to him, and bound up his wounds...and took care of him. (Luke 10:30-35)
Good Samaritan Law Anyone who refuses to come to the aid of a person in danger, if there is no risk to themselves or another, shall be punished by five years imprisonment and a 500,000 franc fine. -French Criminal Code, Article 223-26.
It s actually a common law. Portugal, the Netherlands, Italy, Norway, Russia, Turkey, Denmark, Poland, Germany, Romania, Hungary, Belgium, Switzerland, and Finland have had such laws. In the US: Minnesota, Wisconsin, Vermont have had such a law.
Seinfeld
Finale Episode In the final episode these four philosophers witness a man being carjacked. They do not come to his aid, but instead videotape the crime and crack jokes. Why would we want to help someone? That s what nuns and Red Cross workers are for. --George Costanza
Opinion #1: John Locke Every one, as he is bound to preserve himself, and not to quit his station willfully, so by the like reason, when his own preservation comes not in competition, ought he, as much as he can, to preserve the rest of mankind, and may not, unless it be to do justice on an offender, take away, or impair the life, or what tends to the preservation of the life, the liberty, health, limb, or goods of another.
Opinion #2: Jackie Chiles You cannot be a bystander and be guilty. Bystanders are by definition innocent. That is the nature of bystanding. You don t have to help anybody. That s what this country is all about. This law is deplorable, unfathomable, and improbable.
Verdict: Guilty Their callous indifference and utter disregard for everything that is good and decent rocked the foundation on which this society is built. Do you agree? --Judge Art Vandelay
What is Justice? Justice as fairness Substantive justice Fair outcomes Deontology: People get what they deserve Utilitarianism: People get what gives the greatest happiness for the greatest number Fair opportunities everybody has an equal shot Procedural justice Outcomes are just so long as they followed correct procedures There no external standards by which to judge Due process Justice cannot be arbitrary
Procedural Justice Segregation and procedural justice What if neutral procedures have unfair results? Poll taxes Grandfather clause Literacy test Jury trials
Fighting Crime Police work rests on governmental authority and can be judged, like all things that governments do, by judgments of justice and effectiveness. But whose justice? Victims Criminals Ordinary Citizens How do we know when police have become too heavy handed? Put it to a vote?
Fighting Crime