Justice_ What's the Right Thing to Do_ - Michael Sandel [20]
Some would say the Philip Morris smoking study illustrates the moral folly of cost-benefit analysis and the utilitarian way of thinking that underlies it. Viewing lung cancer deaths as a boon for the bottom line does display a callous disregard for human life. Any morally defensible policy toward smoking would have to consider not only the fiscal effects but also the consequences for public health and human well-being.
But a utilitarian would not dispute the relevance of these broader consequences—the pain and suffering, the grieving families, the loss of life. Bentham invented the concept of utility precisely to capture, on a single scale, the disparate range of things we care about, including the value of human life. For a Benthamite, the smoking study does not embarrass utilitarian principles but simply misapplies them. A fuller cost-benefit analysis would add to the moral calculus an amount representing the cost of dying early for the smoker and his family, and would weigh these against the savings the smoker’s early death would provide the government.
This takes us back to the question of whether all values can be translated into monetary terms. Some versions of cost-benefit analysis try to do so, even to the point of placing a dollar value on human life. Consider two uses of cost-benefit analysis that generated moral outrage, not because they didn’t calculate the value of human life, but because they did.
Exploding gas tanks
During the 1970s, the Ford Pinto was one of the best-selling subcompact cars in the United States. Unfortunately, its fuel tank was prone to explode when another car collided with it from the rear. More than five hundred people died when their Pintos burst into flames, and many more suffered severe burn injuries. When one of the burn victims sued Ford Motor Company for the faulty design, it emerged that Ford engineers had been aware of the danger posed by the gas tank. But company executives had conducted a cost-benefit analysis and determined that the benefits of fixing it (in lives saved and injuries prevented) were not worth the eleven dollars per car it would have cost to equip each car with a device that would have made the gas tank safer.
To calculate the benefits to be gained by a safer gas tank, Ford estimated that 180 deaths and 180 burn injuries would result if no changes were made. It then placed a monetary value on each life lost and injury suffered—$200,000 per life, and $67,000 per injury. It added to these amounts the number and value of the Pintos likely to go up in flames, and calculated that the overall benefit of the safety improvement would be $49.5 million. But the cost of adding an $11 device to 12.5 million vehicles would be $137.5 million. So the company concluded that the cost of fixing the fuel tank was not worth the benefits of a safer car.12
Upon learning of the study, the jury was outraged. It awarded the plaintiff $2.5 million in compensatory damages and $125 million in punitive damages (an amount later reduced to $3.5 million).13 Perhaps the jurors considered it wrong for a corporation to assign a monetary value to human life, or perhaps they thought that $200,000 was egregiously low. Ford had not come up with that figure on its own, but had taken it from a U.S. government agency. In the early 1970s, the National Highway Traffic Safety Administration had calculated the cost of a traffic fatality. Counting future productivity losses, medical costs, funeral costs, and the victim’s pain and suffering, the agency arrived at $200,000 per fatality.
If the jury’s objection was to the price tag, not the principle, a utilitarian could agree. Few people would choose to die in a car crash for $200,000. Most people like living. To measure the full effect on utility of a traffic fatality, one would have to include the victim’s loss of future happiness, not only lost earnings and funeral costs. What, then, would be a truer estimate of the dollar value of a human life?
A discount for seniors
When the U.S. Environmental Protection Agency tried to answer this