JUNK SCIENCE

Reviewed 2/24/2008

Junk Science, by Dan Agin, Ph.D.

JUNK SCIENCE
An Overdue Indictment of Government, Industry and Faith Groups
    That Twist Science for Their Own Gain
Dan Agin, Ph.D.
New York: St. Martin Griffin, 2006

Rating:

5.0

High

ISBN-13 978-0-312-37480-8
ISBN 0-312-37480-1 323pp. SC $14.95

Damn the externals! Full speed ahead!

History shows us over and over again that the majority of corporate executives prefer to ignore what economists label "external costs": such expenses as the cost of safely disposing of waste byproducts from a manufacturing process.1 Dr. Agin looks at some case studies:

Dr. Agin provides much more detail on all of these cases. But the common factor is that corporate executives refused to address the problem until forced to do so, in the meantime proclaiming first that the idea of danger was absurd, then that there was no evidence justifying action, or the evidence was insufficient, and finally that the cost of remediation would be too high.

Agin reserves his most devastating volleys for the tobacco industry. He thinks it outrageous that a product which causes millions of deaths continues to be sold, and regards industry executives as mendacious fools. He quotes one R. J. Reynolds Tobacco Company executive telling an actor (pages 89-90): "We don't smoke that s***. We just sell it. We just reserve the right to smoke for the young, the poor, the black, and the stupid." But Agin is not ranting here; the bombs he lobs are the tobacco pushers' own words, from internal memos and private remarks. Those internal communications have made it clear that they always knew nicotine was addictive and cigarettes are nicotine delivery systems, even though they consistently denied these facts.

We can expect that centuries from now the story of the tobacco industry in the twentieth and twenty-first centuries will be taught as a case study in the abuse of public trust by corporate profiteering. The scale is so vast, the calumny so blatant, the twisting of science so insidious, the misery and death produced so overwhelming, any account cannot possibly do the realities full justice.

– Page 86

Each chapter begins with a pair of quotations, usually of opposing meanings. Consider Chapter 11: "Pollution: Private Interest and Public Poison." The quotations are:

  1. "When an executive decides to take action for reasons of social responsibility, he is taking money from someone else—from the stockholders in the form of lower earnings or from the consumer in the form of higher prices." – Milton Friedman, Nobel Laureate Economist, 1973
  2. "Companies have to be socially responsible or the shareholder pays eventually." – Warren Shaw, CEO of Chancellor LGT Asset Management, 1997

Both men quoted recognize the reality of external costs. The difference is in whether they view dealing with those costs as responsible or otherwise. Milton Friedman apparently holds the latter view — at least judging by what Dr. Agin writes:

Milton Friedman's idea, quoted above, that social responsibility costs money, is what I call "wimpy thinking"—thinking weak and ineffective in logic, thinking with a superficial attitude often attached to an even more superficial philosophical precursor. Such thinking in the hands of many executives in industry usually produces a posture that results in either hiding science or twisting science to achieve corporate ends.

A human society is a collection of individuals organized for mutual benefit but primarily for survival. When social interactions threaten survival of society, the main reason for the existence of society vanishes. The important conflict, apparently unrecognized by Friedman and others, is not between social responsibility and profits, but between short-term profits and long-term losses. In the complete absence of social responsibility, society dies (including shareholders!) and there are no profits for anyone. The idea that the need for corporate social responsibility is a nuisance invented by activists is maybe the most dangerous idea in the ranks of industry in America and elsewhere.

– Pages 155-156

Dr. Agin is correct. First, it's a truism that corporate social responsibility, such as dealing with pollution emitted by your factory, costs money. The only question should be, "Will it cost more money if the pollution is not dealt with responsibly?" Experience from Love Canal to Times Beach has shown that the answer is almost always "Yes."4 Milton Friedman could hardly have been unaware of this. That leads me to wonder if he was quoted out of context.

1 Technically, the term is Externalities: Any effects of an economic transaction on those not taking part in the transaction. Externalities may be costs or benefits. See Externality. It is the costs I am concerned with here.
2 Chief U.S. sources of airborne mercury are (in order): Coal-fired power plants (50 tons/year); plants that extract chlorine from salt ("dozens of tons"); recyclers of scrapped vehicles (12 tons). See e.g. NRDC and Treehugger.
3 It's true that there may not be a way to eliminate the toxic byproducts from every process. Nor is a related alternative — finding a use for what had been a waste product — always possible. But not seeking alternatives means you will never find them.
4 It may be true in such cases that the corporation escapes any cost penalty. But if so, the consumer still pays, either higher prices or avoidable burdens: medical bills, moving expenses, and the like. And it is far from unlikely that civil suits will come back to bite the shareholders.
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