The Strange Distortions of Cost-Benefit Analysis
Source Michael Perelman
Date 07/02/25/21:31

IN MY book, Manufacturing Consent, I described how business-friendly forces have
pushed to eliminate any regulations that cannot survive cost-benefit analysis, where
virtually all non-monetary benefits are dismissed and those that are counted are
low-balled, which the costs to business are overestimated. In the beautifully-named
GWOT (Global War on Terror), the costs of actions are ignored while the benefits are
greatly magnified. Here is Dick Cheney's take on this.
Suskind, Ron. 2006. The One Percent Doctrine: Deep Inside America's Pursuit of Its
Enemies Since 9/11 (NY: Simon and Schuster).
61: Cheney sat for a moment, saying nothing. "We have to deal with this new type of
threat [that Pakistani scientists were helping Al Qaeda build a nuclear bomb] in a
way we haven't yet defined," he said.
62: "With a low-probability, high-impact event like this .... I'm frankly not sure
how we engage. We're going to have to look at it in a completely different way" "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.

[View the list]

InternetBoard v1.0
Copyright (c) 1998, Joongpil Cho