Speaking of Lawrence Summers, a long history of ignorance and foolishness

[el_gato]

I orginally came accross this quote in a essay by Jay Hanson
ECONOMIC EFFICIENCY: Social Darwinism http://dieoff.org/page242.htm
---------------------------------------------
Here is a recent example of Malthus' Thomistic Philosophy (Social Darwinism) by the notorious former World Bank Chief economist and US Treasury Secretary Lawrence H. Summers:

"I think the economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable... because foregone earnings from increased morbidity" are low. He adds that "the underpopulated countries in Africa are vastly underpolluted; their air quality is probably vastly inefficiently low compared to Los Angeles.... " <5>
-----------------------------------------------

Here is the entire memo:

The Memo DATE: December 12, 1991

TO: Distribution

FR: Lawrence H. Summers

Subject: GEP

'Dirty' Industries: Just between you and me, shouldn't the World Bank be encouraging MORE migration of the dirty industries to the LDCs ? I can think of three reasons:



1) The measurements of the costs of health impairing pollution depends on the foregone earnings from increased morbidity and mortality. From this point of view a given amount of health impairing pollution should be done in the country with the lowest cost, which will be the country with the lowest wages. I think the economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable and we should face up to that.



2) The costs of pollution are likely to be non-linear as the initial increments of pollution probably have very low cost. I've always though that under-populated countries in Africa are vastly UNDER-polluted, their air quality is probably vastly inefficiently low compared to Los Angeles or Mexico City. Only the lamentable facts that so much pollution is generated by non-tradable industries (transport, electrical generation) and that the unit transport costs of solid waste are so high prevent world welfare enhancing trade in air pollution and waste.

3) The demand for a clean environment for aesthetic and health reasons is likely to have very high income elasticity. The concern over an agent that causes a one in a million change in the odds of prostate cancer is obviously going to be much higher in a country where people survive to get prostate cancer than in a country where under 5 mortality is 200 per thousand. Also, much of the concern over industrial atmosphere discharge is about visibility impairing particulates. These discharges may have very little direct health impact. Clearly trade in goods that embody aesthetic pollution concerns could be welfare enhancing. While production is mobile the consumption of pretty air is a non-tradable.

-------------

Scumbag extroardinaire

[ElsewheresDaughter]

1. what an EVIL SCUMBAG!

my motto: Live Simply So That Others May Simply Live

[IrateCitizen]

2. Wonderful thoughts from Clinton's Sec of Treasury!!!

Summers took over that position upon the departure of Robert Rubin, who has demonstrated himself to be similarly morally challenged.

Summers also found himself in controversy after leaving government and taking the position of President at Harvard, when he engaged in a very public spat with then-Harvard professor Cornel West. West has since left his post at Harvard for one at Princeton.

Summers is a scumbag extraordinaire.