

Evidence Blindness, Science, Politics, and the Free Market/Business Model
The other day in a science publication I came across a wonderful term -- evidence blindness. Evidence blindness occurs when someone turns a blind eye to evidence contrary to his or her personal convictions, dismissing such evidence on whatever grounds possible, sometimes logical, sometimes anything but logical.
The writer, whose name I can't recall at the moment, made the observation that science works despite the evidence blindness of scientists themselves because theories, discoveries, and claims are subjected to scrutiny by a large and wide body of scientists. While this is a messy process that doesn't always work as well as it might, in general it does weed out bad science over time, and progress does occur. But that progress only occurs because of two factors: (1) the claims have to be able to be empirically tested and (2) nothing is allowed to remain "sacred" once disproven.
Today, as I've intimated in earlier blogs, although I didn't use the term "evidence blindness," our society is setting itself up for collapse because our institutions are actually moving away from the logic of the science model and are fostering a growing epidemic of evidence blindness.
We have politicians who claim that we can pay for all the social programs for the elderly and the uninsured and the impoverished children just by slightly raising taxes on the wealthy. Whether or not this is ethically or politically wise is one question, but no one is pointing out that that, practically speaking, it's impossible. The top ten percent of the taxpayers in income terms already pay close to 70% of all federal income taxes. Even if one could confiscate all the wealth of all the
On the other side, the free market/business model types are forever extolling the virtues of so-called free competition and business practices, and trying to extend them everywhere. We deregulated the telephone industry [and I will note for the record, in the interests of full disclosure, that years ago I was part of a team that looked into and published a study on the likely impact of long-distance deregulation]. Deregulation effectively created two main outcomes: long-distance costs went down, and every other telecommunications cost went up. Ma Bell got broken apart, and now AT&T has been taken over by one of the regional Baby Bells, and we have regional monopolies in land lines, as opposed to a national monopoly, and an oligopoly in cell phone service, not to mention an associated dotcom bubble that burst, with an incredible amount of fraud, loss of jobs, and dislocation. Our free-market in healthcare results in some of the most advanced medical techniques and drugs -- and the highest rate of medically uninsured citizens of any major industrialized nation. Such"free-market" gyrations do indeed result in a "more efficient" allocation of resources, the economists assure us, but they also produce human and economic costs that are anything but insignificant, and yet the champions of the "free market" appear evidence blind to such costs.
Transportation is yet another intriguing area. The United States built a nation that initially was tied together with canals, followed in turn by the railroads, then with the interstate highway system, and then with the airplane. Yet all of these transportation systems that support our "free market" were subsidized heavily by government. George Will, the commentator, who actually once was a transportation analyst for a U.S. Senate committee, observed that without state, local, and federal subsidies no airline company ever in the
We do provide a vast array of government subsidies and services to businesses of all types and classes, and yet the cry from the business community is always to "get government off our backs." They're evidence blind to the benefits they receive, and all most of them see is the taxes they must pay.
They also talk about the need for a business model in government and education. Everything needs to be priced in terms of what it brings in. If music education or physics classes cost too much, increase tuition or fees or cut the programs. If fares don't cover the costs of mass transportation, don't increase subsidies, but raise the fares or cut services. Yet when politicians point out that business needs to pay for the pollution or environmental degradation that it creates, that's imposing unnecessary costs on business.
We all receive services from governments, but so often the services that don't provide tangible cash returns are the ones that we slight -- particularly law enforcement and teachers. More and more often I see business leaders complaining that the schools don't provide the training that they need in workers... but the vast majority of these same "leaders" aren't out there championing the need for more resources for better education. Oh... they want efficiency, and that translates into spending less. Yet study after study has shown that three factors are paramount in successful education: smaller class size, teacher subject matter expertise, and classroom discipline. For various reasons, almost everyone seems evidence blind to these key factors. They just focus on efficiency and management, yet the size and cost of school administration, and the number and amount of tests required have ballooned out of control. Teacher education programs focus more and more on techniques of teaching and less and less on subject matter expertise. And heaven forbid that anyone suggest that any student isn't wonderful or that there are rules and requirements and expectations awaiting him or her out in society.
Why has all this occurred? One significant reason is because honest debate has vanished. If you don't like what someone says, you don't have to confront it or examine it. Just flee to whichever and whatever specialized media niche or religious belief structure that comforts and reassures you. Avoid paying attention to all the unpleasant truths and concentrate on those few that are important to you.
After all, you're free to believe what you want... unlike those poor scientists, who actually have to test and prove their beliefs.
A quick comment on an area where I think I differ slightly, based (I hope) on the evidence. Cf. the chart on Paul Krugman's blog on the increase in income/wealth inequality. Yes, the rich pay 70% of income taxes, but not 70% of their income in federal taxes; more like 20-30%. They also now get 45% of the income/GDP in this country. A 15% increase in their effective tax rate, therefore, works out to about a 7% increse in Federal revenues, if we ignore other Federal taxes (and not including Social Security, which is effectively a regressive wealth transfer). Add on, for the sake of argument, a deduction in Federal costs of $100 billion a year from the Iraq conflict and similar recent initiatives, and we have about an 8% increase in "cash available to spend." Would this be socialist and wipe out incentive to earn? Only if you think that the 0.1% whose incomes have increased by 296% recently would be "disincentivized" by net incomes that are still well above where they were 25 years ago (triple your income, double your tax rate). A possible confirmation of this train of thought comes from one of Paul's recent posts, noting a decrease of federal revenues per capita of about 10% in the early 2000s, with Bush's two tax cuts (primarily affecting the rich) playing an important role. If revenue per capita had simply leveled off during that period [and behaved the same before and after], then revenues per capita would have been 8 to 10% higher than they are. Finally, note that, in recent history, Federal revenues/spending have hovered around 20% of GDP, but dipped to near 15% in the early 2000s. By that logic, even a 20% increase in Federal revenues (16% to 20% of GDP) from taxing the rich would not have a significant "socializing" effect.
Yes, taxing the rich of all their income and wealth would not fund all government needs, once you include state and local government; but would an 8% increase in revenues fund a lot of social programs without taking government's share of the economy out of the range of the historically normal? Based on the evidence, I think so.
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