Markets Erode Morals

Oct 16, 1999
10,490
4
0
Markets can make people do bad things.

That's the disturbing -- but sadly not all that shocking -- conclusion of a recent experiment by two German economists, who found that people were more willing to let laboratory mice be killed in exchange for small sums of money if they were involved in financial markets where the mice's lives were bought and sold. The more people in the market, the cheaper the lives of the mice were. Markets eroded the morals of the people involved.

The study helps explain how people who might ordinarily be horrified by labor conditions in Bangladesh or environmental devastation in China can end up supporting those things without thinking about it. It's much easier for us to buy that cheap T-shirt made with sweatshop labor if financial markets shield us from the ugly reality of how it got made, or at least help us pass off responsibility for those things onto somebody else in the market. It helps explain how Wall Street traders can ignore the potentially devastating consequences of pumping dangerous bubbles higher.

In the study, by Armin Falk of the University of Bonn and Nora Szechone of the University of Bamberg, one group of people was given a simple, stark choice: They would get 10 euros if they agreed to let a mouse be killed. Nearly 46 percent of the people in that group chose the 10 euros, consigning their mice to death. You might call this the "control group," or "mouse murderers."

Then, the experimenters put several more people in trading markets, where rights to trade the lives of the mice were bought and sold. In a simple market, 72 percent of the people involved were willing to trade the lives of mice for money, usually for much less than 10 euros.

In a more complex market, involving more traders, roughly 76 percent killed mice for cash, at even lower prices.
More at link:
http://www.huffingtonpost.com/2013/05/13/markets-morals-study_n_3267995.html

I don't have much of a comment other than I think this is pretty apparent out in the world to anyone willing to see it.
 

Craig234

Lifer
May 1, 2006
38,548
350
126
More at link:
http://www.huffingtonpost.com/2013/05/13/markets-morals-study_n_3267995.html

I don't have much of a comment other than I think this is pretty apparent out in the world to anyone willing to see it.

I think that's absolutely correct.

Not only will individuals tend to do things they would otherwise consider wrong if it's for employment, but the issue is magnified greatly when it's a big company.

By that point, the pressures to get returns are massive, and competititve pressures prevent nearly any consideration of 'what is right' when in conflict with profits.

Any corporate leader who thinks he can indulge in some personal sense of morality at the expense of profits finds that's one of the things that can quickly get him replaced.

That's why we absolutely need government to play that critical role of being an uncorrupted referee protecting society's interests by not letting anyone do things that are profitable for a selfish benefit but bad for society - and why more responsible businessmen support that because they know the only way to prevent it is to prevent it for everyone so that competition can't force them to partake.

'The market' can become a blinding sort of ideologicl device hiding great evils. It must always be subservient to society's interests and morals. That leaves plenty of freedom.

Save234
 

Mursilis

Diamond Member
Mar 11, 2001
7,756
11
81
That's why we absolutely need government to play that critical role of being an uncorrupted referee protecting society's interests by not letting anyone do things that are profitable for a selfish benefit but bad for society - and why more responsible businessmen support that because they know the only way to prevent it is to prevent it for everyone so that competition can't force them to partake.

'The market' can become a blinding sort of ideological device hiding great evils. It must always be subservient to society's interests and morals. That leaves plenty of freedom.

Save234

"Society" doesn't exist, and therefore has no "interests"; individuals exist, but have wildly divergent interests, some of which (most of which?) probably aren't even in the individual's own best interest over the long term (smoking? fried foods? payday loans?).

The idea of an "uncorrupted referee" is a nice theory and all, and I even agree that capitalism needs such a figure, with real power, but good luck keeping gov't uncorrupted. Lord Acton was right - power corrupts. You can either have an uncorrupted gov't, or a powerful one, but likely not both, or at least not both for long.
 
Oct 16, 1999
10,490
4
0
"Society" doesn't exist, and therefore has no "interests"; individuals exist, but have wildly divergent interests, some of which (most of which?) probably aren't even in the individual's own best interest over the long term (smoking? fried foods? payday loans?).

The idea of an "uncorrupted referee" is a nice theory and all, and I even agree that capitalism needs such a figure, with real power, but good luck keeping gov't uncorrupted. Lord Acton was right - power corrupts. You can either have an uncorrupted gov't, or a powerful one, but likely not both, or at least not both for long.

Actually he wasn't.
In sum, the study found, power doesn’t corrupt; it heightens pre-existing ethical tendencies. Which brings to mind another maxim, from Abraham Lincoln: “Nearly all men can stand adversity, but if you want to test a man’s character, give him power.”
http://www.smithsonianmag.com/science-nature/Why-Power-Corrupts-169804606.html
 

ohnoes

Senior member
Oct 11, 2007
269
0
0
It's pretty simple right? Individual decisions are 100% owned by you and so you feel entirely responsible.

Markets have other actors and responsibility of consequences is shared. If I offered ten bucks to kill a mouse, and someone took me up on it, then the responsibility is shared and you feel less guilty.
 

smackababy

Lifer
Oct 30, 2008
27,024
79
86
Maybe people just don't care about the lives of mice? Think about it. It is not exactly like mice are loved by people. They are characterized by being filthy and carrying disease. $10 to kill a mouse, sounds like $10 well earned.

Change it to a dog or a cat, and I bet the sum would have to be much higher.
 
Oct 16, 1999
10,490
4
0
Maybe people just don't care about the lives of mice? Think about it. It is not exactly like mice are loved by people. They are characterized by being filthy and carrying disease. $10 to kill a mouse, sounds like $10 well earned.

Change it to a dog or a cat, and I bet the sum would have to be much higher.

They still care less when their lives become marketized. It's that marginal change that's relevant.
 

smackababy

Lifer
Oct 30, 2008
27,024
79
86
The problem is, I don't think there is a morality with mice. Mice to most people are rats. Everyone hates rats. Sure, people don't go around killing rats in their spare time, but they don't shed a tear when a rat dies.

I think the study needs to be conducted with someone people actually care about. Like dogs or cats. Babies and people would be too extreme.

Another problem with the study was, were the mice actually being killed? And the concept is a bit strange. Trading mouse lives for cash? That is a bit odd, don't you think? The likeliness of such a market seems rather contrived. If it were something more reasonable, like dog trading for consumption, I think people might respond different.
 

cwjerome

Diamond Member
Sep 30, 2004
4,346
26
81
I'm not sure what to pull from this other than reaffirming that common sense idea that people are influenced by a lot of things, sometimes negatively. This actually made me think about the personality and psychological quirks that surround the organization and function of bureaucracies as well. That markets bring immense benefits to societies but can also have negative side-effects isn't particularly insightful to me.
 

SMOGZINN

Lifer
Jun 17, 2005
14,221
4,452
136
That's why we absolutely need government to play that critical role of being an uncorrupted referee protecting society's interests by not letting anyone do things that are profitable for a selfish benefit but bad for society - and why more responsible businessmen support that because they know the only way to prevent it is to prevent it for everyone so that competition can't force them to partake.
The problem is it does not take long for those businessmen to realize that even better then preventing everyone is to prevent everyone but me! This is where the whole thing really leads, everyone trying to get government to stop everyone else but exempt them.

The problem is, I don't think there is a morality with mice. Mice to most people are rats. Everyone hates rats. Sure, people don't go around killing rats in their spare time, but they don't shed a tear when a rat dies.

This is why there is a control group. We can see the change in peoples behaviors when we introduce new stimulus, in this case the market. People were willing to kill mice more often, and for less money when there was a market involved then if they were simply offered money to kill the mice.

Another problem with the study was, were the mice actually being killed?

No. That would be unethical. They simply convinced people that the mice would be killed.


And the concept is a bit strange. Trading mouse lives for cash? That is a bit odd, don't you think? The likeliness of such a market seems rather contrived. If it were something more reasonable, like dog trading for consumption, I think people might respond different.

The experiment would have used a ruse, probably telling students that they needed someone to run the lab mouse distribution for the university, and gave them some sort of story like that they could sell the mice to a group that is going to use the mice in legitimate sounding medical experiments that would require the dissection of the mice, or they could choose instead to give (or sell) the mice to a group that would be doing experiments that would not be harmful to the mice, like psychological maze running experiments.
 

werepossum

Elite Member
Jul 10, 2006
29,873
463
126
"Society" doesn't exist, and therefore has no "interests"; individuals exist, but have wildly divergent interests, some of which (most of which?) probably aren't even in the individual's own best interest over the long term (smoking? fried foods? payday loans?).

The idea of an "uncorrupted referee" is a nice theory and all, and I even agree that capitalism needs such a figure, with real power, but good luck keeping gov't uncorrupted. Lord Acton was right - power corrupts. You can either have an uncorrupted gov't, or a powerful one, but likely not both, or at least not both for long.
Very well said, sir.

The problem is, I don't think there is a morality with mice. Mice to most people are rats. Everyone hates rats. Sure, people don't go around killing rats in their spare time, but they don't shed a tear when a rat dies.

I think the study needs to be conducted with someone people actually care about. Like dogs or cats. Babies and people would be too extreme.

Another problem with the study was, were the mice actually being killed? And the concept is a bit strange. Trading mouse lives for cash? That is a bit odd, don't you think? The likeliness of such a market seems rather contrived. If it were something more reasonable, like dog trading for consumption, I think people might respond different.
QFT This concept of a market where people compete to set the market value to kill vermin is about all one needs to know about this "study". Not academia's brightest moment, to be sure.
 

woolfe9998

Lifer
Apr 8, 2013
16,189
14,114
136
Very well said, sir.


QFT This concept of a market where people compete to set the market value to kill vermin is about all one needs to know about this "study". Not academia's brightest moment, to be sure.

Nah, the fact that mice aren't generally valued is beside the point. There was an experimental group and a control group here, the difference being that in the control group only 46% took the 10 euros for the mouse's life. In the experimental groups where they added a market concept the number jumped to 72 and 76% (for simple or complex markets), even though they often got less than 10 euros. It isn't the overall concern for the well being of mice in general but the delta between the two situations that matters here.
 

smackababy

Lifer
Oct 30, 2008
27,024
79
86
Nah, the fact that mice aren't generally valued is beside the point. There was an experimental group and a control group here, the difference being that in the control group only 46% took the 10 euros for the mouse's life. In the experimental groups where they added a market concept the number jumped to 72 and 76% (for simple or complex markets), even though they often got less than 10 euros. It isn't the overall concern for the well being of mice in general but the delta between the two situations that matters here.

The control group should have be selling carrots or something equally mundane. Then, you can determine if the market erodes morality or simply entices people who otherwise would not participate in such events, would and at what price. It did not even have to be a named "commodity". The idea that, due to markets, our morality is put to the side could be a facet of it or that a market system could entice people to want to participate in said game. Was the experimental groups also asked individually, outside of the market if they would sell. You might have just gotten a particularly "callous" group in the market scenario.
 

SMOGZINN

Lifer
Jun 17, 2005
14,221
4,452
136
The control group should have be selling carrots or something equally mundane. Then, you can determine if the market erodes morality or simply entices people who otherwise would not participate in such events, would and at what price. It did not even have to be a named "commodity". The idea that, due to markets, our morality is put to the side could be a facet of it or that a market system could entice people to want to participate in said game. Was the experimental groups also asked individually, outside of the market if they would sell. You might have just gotten a particularly "callous" group in the market scenario.

I don't think you are understanding the experimental design. The lives of mice were used as a moral dilemma. It is expected that the people would have some hesitance due to morals in killing the mice. Then they give them a reward for killing the mice, and some people find that reward large enough to overcome the moral dilemma and others did not. That gives us a control. We then add in a new variable, the market, and ask again how many people are willing to kill the mice when a market is involved, and we see that a lot more people are willing to. This is a statistically significant result.

We don't have to know anything about individuals, because we are interested in populations. As long as both the control sample and the experimental sample were representative of the population being tested, and the sample size was large enough, then our results hold true.
 

Craig234

Lifer
May 1, 2006
38,548
350
126
The control group should have be selling carrots or something equally mundane.

That's not how control groups work. The point is for them to be the same in every way possible as the experimental group except the thing being compared.
 

zinfamous

No Lifer
Jul 12, 2006
111,143
30,096
146
Some people like to pat themselves on the back about our sweeping labor laws from the 20s to 40s that drastically improved worker conditions, rights, and protection.


It did no such thing, really--we simply "shipped" those workers overseas so that we don't have to see them any more. The conditions in Bangladesh are the exact same conditions in the Manhattan garment industry and meat packing Industry of Chicago up until the 20s and 30s.
 

zinfamous

No Lifer
Jul 12, 2006
111,143
30,096
146
The problem is, I don't think there is a morality with mice. Mice to most people are rats. Everyone hates rats. Sure, people don't go around killing rats in their spare time, but they don't shed a tear when a rat dies.

I think the study needs to be conducted with someone people actually care about. Like dogs or cats. Babies and people would be too extreme.

Another problem with the study was, were the mice actually being killed? And the concept is a bit strange. Trading mouse lives for cash? That is a bit odd, don't you think? The likeliness of such a market seems rather contrived. If it were something more reasonable, like dog trading for consumption, I think people might respond different.

QFT This concept of a market where people compete to set the market value to kill vermin is about all one needs to know about this "study". Not academia's brightest moment, to be sure.

I don't think that's true, actually. I worked with mice for several years in a laboratory setting, where the nature of the work involves daily killing of rather large numbers of mice--pups, pinkies, adults, whatever--either to harvest embryos, sperm, because they are old....whatever.

You can do it because you know that the work has a higher purpose--mostly going towards disease, development, all sorts of medical research. but snuffing them out with CO2 is not pleasant, and despite the purpose of the work, I really didn't want to do it any more after a certain point. You get used to it, desensitized to a degree as it becomes routine, but the required method of saccing them is absolutely horrible.

Not sure about the details of this study--but putting a pile of mice in a CO2 chamber so that the subjects can see the result of their decisions would certainly suffice as a moral test. And in all honesty, I can see profit counted per mouse as something that would, indeed, challenge my moral code.


people assume things about rats as vermin. truth be told--these are very different than mice. Rats are actually extremely intelligent, docile creatures. They make excellent pets. If you expose the group to them properly, I think it would be difficult for anyone to compare the two critters on equal terms. Mice are pretty stupid and they bite constantly (rats rarely, if ever, bite humans), but they are cute.

of course...put a rat and a mouse together: bad idea. But, I digress....
 

smackababy

Lifer
Oct 30, 2008
27,024
79
86
I don't think you are understanding the experimental design. The lives of mice were used as a moral dilemma. It is expected that the people would have some hesitance due to morals in killing the mice. Then they give them a reward for killing the mice, and some people find that reward large enough to overcome the moral dilemma and others did not. That gives us a control. We then add in a new variable, the market, and ask again how many people are willing to kill the mice when a market is involved, and we see that a lot more people are willing to. This is a statistically significant result.

We don't have to know anything about individuals, because we are interested in populations. As long as both the control sample and the experimental sample were representative of the population being tested, and the sample size was large enough, then our results hold true.

Except the conclusion being drawn (that markets erode morality) might not be represented by the data. If, a group is more likely to sell ANYTHING in a market, the morality of the lives of mice is not the issue.
 

Craig234

Lifer
May 1, 2006
38,548
350
126
Some people like to pat themselves on the back about our sweeping labor laws from the 20s to 40s that drastically improved worker conditions, rights, and protection.


It did no such thing, really--we simply "shipped" those workers overseas so that we don't have to see them any more. The conditions in Bangladesh are the exact same conditions in the Manhattan garment industry and meat packing Industry of Chicago up until the 20s and 30s.

No, we actually improved things a lot for US workers.
 

smackababy

Lifer
Oct 30, 2008
27,024
79
86
I don't think that's true, actually. I worked with mice for several years in a laboratory setting, where the nature of the work involves daily killing of rather large numbers of mice--pups, pinkies, adults, whatever--either to harvest embryos, sperm, because they are old....whatever.

You can do it because you know that the work has a higher purpose--mostly going towards disease, development, all sorts of medical research. but snuffing them out with CO2 is not pleasant, and despite the purpose of the work, I really didn't want to do it any more after a certain point. You get used to it, desensitized to a degree as it becomes routine, but the required method of saccing them is absolutely horrible.

Not sure about the details of this study--but putting a pile of mice in a CO2 chamber so that the subjects can see the result of their decisions would certainly suffice as a moral test. And in all honesty, I can see profit counted per mouse as something that would, indeed, challenge my moral code.


people assume things about rats as vermin. truth be told--these are very different than mice. Rats are actually extremely intelligent, docile creatures. They make excellent pets. If you expose the group to them properly, I think it would be difficult for anyone to compare the two critters on equal terms. Mice are pretty stupid and they bite constantly (rats rarely, if ever, bite humans), but they are cute.

of course...put a rat and a mouse together: bad idea. But, I digress....

Because of your background, I highly doubt you represent the population. Chances are you are fairly educated and have intelligence above the average person. Same as I don't believe those in highly competitive markets are a representation of the population either. You do not go into something like that unless you are cut throat to begin with, otherwise you fail.

Also, the moral code of any person is subjective. Who decided a mouses life was immoral to take, and if under the pretense these mice will die to benefit research to save human lives, who would not consider it immoral to experiment on them?
 

SMOGZINN

Lifer
Jun 17, 2005
14,221
4,452
136
Except the conclusion being drawn (that markets erode morality) might not be represented by the data. If, a group is more likely to sell ANYTHING in a market, the morality of the lives of mice is not the issue.

If they are willing to sell ANYTHING in a market, but were not willing to sell some things when not in a market, it shows that their morals were eroded by the market system.


Also, the moral code of any person is subjective. Who decided a mouses life was immoral to take, and if under the pretense these mice will die to benefit research to save human lives, who would not consider it immoral to experiment on them?

They used the control to get a barometer reading of the moral code. They then tested against that reading with a market in place.
 

smackababy

Lifer
Oct 30, 2008
27,024
79
86
If they are willing to sell ANYTHING in a market, but were not willing to sell some things when not in a market, it shows that their morals were eroded by the market system.




They used the control to get a barometer reading of the moral code. They then tested against that reading with a market in place.

Except, we don't know they were how the introduction of the market changes willingness to sell things. It was a separate "control" group that was offered money in exchange for a mouses life. The research group was offered that same scenario, only in a market.

A better experiment would have been to have a non "moral" choice individual vs market against a moral choice individual vs market. They claim people are more willing to violate their moral code when in a market, however, they have no basis on the people in the market's moral code because it was untested. They, at least from what I could see, did not specify the size of the control group.

The article, not only takes this "conclusion" as fact, but also takes it a step further insinuating because I buy electronics, my moral code against sweatshops in China is being broken. When in reality, I cannot buy American made electronics, regardless of price, with the same features as an iPhone or an nVIDIA Titan.

Also, I find the study extremely lacking, because this was not hypothetical mice. The mice were to be killed unless you refused the money. This was made known from what I can tell.
 

zinfamous

No Lifer
Jul 12, 2006
111,143
30,096
146
No, we actually improved things a lot for US workers.


again, we never addressed the issues in the specific sectors that were targeted--we simply shipped those sectors overseas.


If humanity was our goal, it was an utter failure. nationality is irrelevant in that type of discussion.
 

Craig234

Lifer
May 1, 2006
38,548
350
126
again, we never addressed the issues in the specific sectors that were targeted--we simply shipped those sectors overseas.


If humanity was our goal, it was an utter failure. nationality is irrelevant in that type of discussion.

I'm not that familiar with what we shipped oversease in that period, and am not disagreeing with your assertions about it.

What I'm disagreeing about is that the remaining workers didn't get a lot of improvement, something you seem to agree with in your latest post.
 
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