Monday, August 10, 2009

Econimic Philosophy: The True Aims of Business


Health care reform debate is in the air. I thought I'd write a more theoretical post on what I take to be the critical underpinnings of this debate, so please don't expect things like statistics and numbers, I don't really do those.

I'll start with a discussion on business teleology. What does teleology mean? Coined by Aristotle, the wikipedia entry defines teleology or telos as: the philosophical study of design and purpose. So when I suggest that we'll be looking at the telos of business I'm merely indicating that we'll look at a broad understanding what the aims of business is, set in the context of health care.

Real quick, there's another term I'm going to be throwing around: ontology. Another Aristotelian word defined by wikipedia as: the philosophical study of the nature of being, existence or reality in general, as well as of the basic categories of being and their relations, i.e. in order for a quality of a thing to be considered an ontological quality it must in some way define the thing. That is, without this ontological quality a thing is not recognizably what we define it to be. So, an ontological quality of a hydrogen atom is that it only contains one electron. If an atom has more or less than one electron then it is not a hydrogen atom.

So, what are the teleological and and ontological qualities of a business? For starters a business aims to make a profit. This would be an ontological quality, if an organization aims at something other than making profit, then it is not a business. The teleology of a capitalistic business is to make as much profit as possible. These two things are quite obvious and it seems silly to lay them out like this, but it's important to do so. In summation, a business, in the broadest sense has two very basic aspects: to make a profit and to make as much of a profit as possible.

Another thing to go over real quick is the difference between means and aims. Think of your favorite company, I am partial to Apple Computers, I like their products. Apple is in the business of making quality computers and computer equipment. I shop at Whole Foods which is in the business of providing high quality and premium groceries. I buy video games at Gamestop which is in the business of stocking a wide selection of new and used video games. Each one of these companies employ different means all of which designed to satisfy the same aim: to make as much profit as possible.

The point I'm driving at is this: all businesses, regardless of means, aim for one, and only one thing: profit. Apple Computers, Whole Foods, and Gamestop are moneymakers FIRST! Their products are secondary considerations designed only to achieve their primary aim. This is a dangerous situation. As anyone who's seen Food, Inc. recently can attest to, companies have an incentive to lower the quality of their products and services if it serves their aim the best. So, McDonald's and Whole Foods share a common aim, NEITHER business is in the business of feeding people, they're only in the business of turning profit, that's it, end of story.



What does this have to do with health care? Well, our country's health care system has been in the hands of private interest for some time now. Our country's health care system is a business. Saving lives and keeping people healthy is the means. So have we experienced a "McDonaldizidation" of our health care, wherein the quality of the product is sacrificed for an increase in profit? That's for you to decide I suppose. There's piles of evidence for and against this question. Rather than wade through all that crap, just look at the theoretical aspect of the question.

Is health care, currently, a business?
Yes.

Do businesses have an ontological and teleological incentive to reduce the quality of their means if it increases their profits?
Yes.

Further, is a business that maximizes its profits a better business than one that does not?
Yes.

Are businesses willing to sacrifice the quality of human life or human life itself, in order to maximize profits?
Yes (it has happened in the past.)

So, the question boils down to this: is it right for health care to be the means of a business? There are certain commodities that we have that are defensibly commodities: luxury cars, computers, beer, movies, etc. These are things that are not essential to human life, so skimming a buck off of them shouldn't really raise any alarms. However, does it really seem right, in that gut feeling, intuitive way, to make PROFIT off of providing life saving health care to individuals? Does it really seem right to make money off of the sick? Is it right to tell a person they're going to die simply because there's no immediate profit to be made off of their living? If I saw a man bleeding on the road and told him I'd only call for help if he paid me $10 you would be appalled, I'm sure. I don't see how the current health care system is significantly different from that.

If a rich man and a poor man get the same disease, is really part of America's fundamental ideals that the rich man, who can afford the life saving surgery, live while the poor man dies?

I hear the remark, "I don't want politicians interfering in my life," or some variation. I take it to be the case that these people are perfectly satisfied with having CEO's, lawyers, and accountants interfering in their lives. Because that what this all really boils down to.

Who do you trust less: politicians or CEO's, lawyers, and accountants? Because ONE of those two groups is going to be running our health care whether we like it or not and I hope to have demonstrated (at least, theoretically) why one of those groups not merely untrustworthy, but downright inhuman, scum sucking, hell spawns (hint: I'm talking about the CEO's, lawyers, and politicians.)

One last word, for those of you who lay awake at night fretting over the encroaching socialism that seems to be knocking at your door, I'm afraid you've been hornswoggled, duped, tricked, lied to. You're being used, like a cow who's been taught to herd her kin into the slaughterhouse. Take a moment, sit quietly with your fear and think, think really, really hard about the situation.