Raghu writes:

>> David,
>> So you agree that it is ethically abhorrent to do cost-benefit
>> analysis based on narrow profit/loss considerations alone?
>> 
>> If so, I think that'll help narrow down the points of contention here a lot.

I think doing cost-benefit analysis is entirely moral neutral.  Cost-benefit 
analysis is a tool that provides information for decision-making -- it is not 
decision-making.

That being said, if you are a utilitarian, I have difficulty in understanding 
how a decision based upon the results of a cost-benefit analysis would be 
ethicallty abhorrent.  Again, this assumes that the cost/benefit calculation is 
noncontroversial, which I readily admit is difficult to accomplish.

The revulsion toward cost/benefit analysis necessarily assumes that our 
intuitive ethics are correct, and that a cost/benefit analysis should be judged 
against whether it agrees with our intuitive ethics (e.g. note Michael 
Perelman's implict argument that if the cell phone cost/benefit analysis 
disagrees with his intuitive ethical position, the problem is the cost/benefit 
analysis and not his intuitive ethical position).  I think the revulsion misses 
the point that (1) we have competing goods that are often hard to reconcile, 
(2) our intuitive ethics are often based upon incomplete and/or incorrect 
information, and (3) our intuitive ethics necessarily has to come from 
somewhere outside of ourselves, at least in part.  Cost/benefit analysis plays 
a necessary party in addressing each of these three issues and I find it almost 
impossible to comprehend how one can determine what is ethical in any situation 
without incorporating cost/benefit analysis.

David Shemano



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