06.28
Ok, so I already gave my thoughts on Dr. Moore’s musings about the oil spill, and his idea of an evangelical green conscience a few days ago. Now, it appears that he has also given NPR an interview on the same topic.
After reading the writeup, I just came away shaking my head and wondering what is prompting him to put himself out front in the media on this issue. Doesn’t he realize that the mainstream media uses people like him to drive whatever meme’ they are currently interested in? If he doesn’t, he needs to recognize soon before they just use him as a tool and throw him out. It’s what they do.
But, beyond that concern, I’m even more bothered by the horrible excuse for a logical argument that he uses. He makes this statement:
“There’s really nothing conservative — and certainly nothing evangelical — about a laissez-faire view of a lack of government regulation,” Moore says, “because we, as Christians, believe in sin.”
“That means if people are sinful, if all of us are sinful, then all of us have to have accountability — and that includes corporations.” Moore says. “Simply trusting corporations to go about their business without polluting the water streams and without destroying ecosystems is really a naive and utopian view of human nature. It’s not a Christian view of human nature.”
As is customary with bad argument analysis here on SB, we need to turn Dr. Moore’s argument into a syllogism for clarity:
- A. Christians believe in sin.(a)
- B. Accountability places a check on sin.(a)
- C. Conservative evangelicalism aims to minimize sin.(a)
- D. Government regulation places accountability on corporations.(a)
- Therefore, conservative evangelicals should be in favor of government regulations on corporations.
I believe that is a very fair representation of his argument. Now, let’s analyze it’s flaws.
Firstly, the most obvious flaw with his argument is that it proves too much. Every one of his four premises are universal positives. That’s always a dangerous way to argue because it ends up proving way more than you would like it to. In effect, I could use his argument to argue in favor of government regulation of anything. In fact, let’s do that:
- A. Christians believe in sin.(a)
- B. Accountability places a check on sin.(a)
- C. Conservative evangelicalism aims to minimize sin.(a)
- D. Government regulation places accountability on churches.(a)
- Therefore, conservative evangelicals should be in favor of government regulations of churches.
Churches do all kinds of horrible things as well. Just look at the Catholic sex scandals of the last two decades. Dr. Moore’s argument is ready and willing to justify government regulation of churches to curb the sinfulness of their congregants and leaders. All we would need to do is just tweak the last noun in premise D and we can justify the regulation of anything at all. That’s the sign of a bad argument.
But, getting back to his argument as stated; while it’s true that Christians believe in sin, and accountability helps to curb some forms of sinfulness, it’s not true that government regulation acts as a check on corporate “sinfulness.” As I show here often, government regulation is the very lifeblood of big business. The oil industry lives and dies by government. They use government regulation to stifle competition by making market entrance cost astronomical. They use regulations to limit their own liability in the case financial disaster. They use regulations to gain unfair advantage over foreign competitors, and on, and on. Government regulations are practically the mission statements of big business. The notion that a large corpus of government regulation places a real check on corporate malfeasance is utterly naive. Regulations don’t check corporate shenanigans, they enable them.
The concept that Dr. Moore seems to misunderstand is that government is inherently unable to perform the role of impartial regulator. It appears that he is under the impression that simply changing actors within the government structure, or perhaps changing the structure itself, would effect efficient regulation of corporate self interest. That is incorrect. I’ll repeat: government is inherently unable to regulate. This is because, no matter what regulatory structure you erect, or who you position within that structure, the undermining fact is that government has a monopoly on the use of force. They are the only ones that are legally allowed to use coercion at the barrel of a gun. You can’t reform that situation. It’s the very definition of moral hazard.
Let’s look at some real life oil spill regulations as an example:
But not as much for BP, thanks to a law passed in 1990 that will limit its liability for economic damages to a small fraction of the likely cost of the disaster.
The Oil Pollution Act of 1990, signed in the wake of the Exxon Valdez disaster, limits a firms’ economic liability from an oil spill to $75 million — a fixed number that hasn’t been indexed for inflation.
Any costs above that are covered by the Oil Spill Liability Trust Fund — funded by U.S. taxpayers — which can spend up to $1 billion per incident for oil removal and damages.
And for a company like BP, $75 million is truly a drop in the bucket: In 2009, BP’s daily profits average $93 million a day — which means they could absorb the loss in 24 hours and still have $18 million to spare.
BP has said that it will waive the limits on its liability and pay whatever claims come their way, although there’s nothing in the law that will compel them to do so. And as long as the law allows companies to carry out drilling projects but not face much economic risk in the case of an accident, critics say it gives a green light to risky behavior.
Guess who was the president in 1990. Yep, Daddy Bush. The “conservative evangelical.” The true punishment that the market would inflict on BP has been artificially inhibited by government regulations. Tell me how lassez-faire created that little gem.
On the other hand, there is a mechanism that provides an effective check on sin within the marketplace. It’s called the price mechanism, and it’s guided by the laws of economics. If allowed to function without interference, the pricing mechanism will regulate the behaviour of actors within the market by punishing them with losses or rewarding them with profits. Let’s look at the BP oil spill as an example. In a free market, what would keep BP from polluting and spilling oil all over the Gulf of Mexico? Simple. Every gallon of oil that goes into the water is a gallon of oil that BP can’t use. BP is self-motivated to not spill oil for the same reason that the deli owner is motivated not to leave his meat out on the counter all day. It would go rancid and he would lose money by having to throw it away. That’s a complete waste of money and resources. And you know what the market does to companies that waste money and resources? It drives them out of business.
But, BP has decided it’s far more in it’s own interest to protect itself from waste by lobbying and bribing a lot of regulations into place that insulate it from the harsh reality of the market. If Russell Moore really wants BP to bear true responsibility for the oil spill it created, he needs to take away it’s safety blanket of government and let the free market pronounce judgement on BP the way it’s supposed to.



