- Oct 16, 1999
- 10,490
- 4
- 0
More at link: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.
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.