2010/02/21

Economic policy analysis and emotions

Robert Frank has an op-ed in today's NY Times that tries to understand why we are being so irrational about global warming. A relatively small certain cost, like a carbon tax can probably avert a gigantic disaster that is moderately likely. This should be an easy one, but apparently it's not.
This strange state of affairs may be rooted in human psychology. As the Harvard psychologist Daniel Gilbert put it in a 2006 op-ed article in The Los Angeles Times, “Global warming is bad, but it doesn’t make us feel nauseated or angry or disgraced, and thus we don’t feel compelled to rail against it as we do against other momentous threats to our species, such as flag burning.”
People tend to have strong emotions about topics like food and sex, and to create their own moral rules around these emotions, he says. “Moral emotions are the brain’s call to action,” he wrote. “If climate change were caused by gay sex, or by the practice of eating kittens, millions of protesters would be massing in the streets.”
Frank's quoting this and his comment on it ("But the human brain is remarkably flexible. Emotions matter, but so does logic.") are instructive about where interesting economics might be heading these days. We'll be better off if we start policy discussions by assuming that reflective choice is not the automatic baseline, but part of a larger process in which emotions and habits play just as large a role as rational problem solving.

If we become more able to make these important choices well, it will only be because we fought for it on all fronts: from political statesmanship in the moment all the way to K-12 funding and curriculum. If we can shift the way we suppose human action is generated and stop presuming that all action originates from choice, we'll be more willing to undertake that struggle, and wiser about how we do it.

2010/02/20

About the title…

It's my hope that the title phrase is meaningful in three senses:

  1. It's a common usage. We label as ‘routine’ any of the myriad recurring activities that we can accomplish with little thought. These actions that seem hardly to demand our serious attention are Routine Matters. Their nature the subject matter of the blog.
  2. The topic may seem dull, but the issues presented by the study of routine and other recurring action patterns could not be more fundamental for our working life, our friendships and family relations, our approaches to education and research – even our national political economy. In this sense the title urges careful examination of what we often take for granted: Routine [Really] Matters [!].
  3. There is also the sense conveyed more precisely by printing the title as ‘Routine’ Matters. How we use the term is tightly bound up with the problems we are having when we try to understand recurring action patterns. We may become able to see more clearly if we can free ourselves from the impoverished image that we carry along when we presume that routine activities are always mundane in content, rigidly invariant in execution, and isolated from thought or feeling.