I am continually amazed by the rhetorical use of principle and
probability.  States' rights are a perfect example.  To begin with, this
concept first evolved as a tactic to protect the rights of slave owners,
hardly a noble objective.  Since then, it has become almost synonymous with
freedom.  States should have the right to determine who can and cannot get
married.  The federal government has no business sticking its nose into
such matters.  On the other hand, states' right to legislate on marijuana
use is routinely overruled.  Similarly, states' right to control business
abuses, such as the spreading of pollution, are routinely overruled by
Congress, including strong upholders of states' rights.

The probability of somebody being injured by a consumer product or an
industrial process, such as fracking, are typically dismissed out of hand.
On the other hand, protection against terrorism is treated differently.
Richard Cheney offers an excellent example of that approach: "If there's a
one percent chance that Pakistani scientists are helping al Qaeda build or
develop a nuclear weapon, we have to treat it as if it is a certainty in
terms of our response," Cheney said."  Of course, the kind of actions that
Cheney proposed greatly increase the probability of terrorism, which might
be desirable in the sense that it offers a welcome pretext to build up the
bureaucratic powers justified by such threats.

Appeals to probability are especially interesting because of the ease with
which measures of likelihood can be easily manipulated.  Here is one of my
favorite examples concerns Richard Thaler's measure of the value of a
statistical life, a measure that Thaler soon realized was a wildly
underestimated.  This underestimation, meant that the cost-benefit analysis
of workers' protection was far more likely to prove unfavorable.  Here is a
snippet from my Invisible Handcuffs book to show how creatively such
analysis could be applied:



"John D. Graham, a fervent opponent of regulation, who became President
George W. Bush’s head of the Office of Management and Budget’s Office of
Information and Regulatory Affairs, even went so far as to claim that
spending money on regulations instead of vaccinating children is tantamount
to “statistical murder.”   Ironically, I know of no case when the
anti-regulators came out in support of any program to actually vaccinate
children, perhaps preferring to be able to recycle vaccination as a straw
man to wield against all regulation."

-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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