[PEN-L:8224] Re: Re: Summers Memo

[Doug Henwood <dhenwood@xxxxxxxxx>]

Brad De Long wrote:

>>>"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."
>>
>>The thing is that by the logic of neoclassical economics, Summers/Pritchett
>>is absolutely right. It's an indictment of the discipline, not his/their
>>personal evil. No one seems to have had the nerve to "face up to that."
>>
>>Doug
>
>Actually, no. Ceci Rouse says that Larry Summers gave a very good lecture
>on these points in his public finance course the year before he went to the
>World Bank...

If the economic loss from a premature death is the present value of the
foregone income, then it is "impeccably logical" to view the death of an
African as less costly than that of a North American or Swede. Your
argument is all about raising welfare levels - I don't see how that has
much bearing on this murderous arithmetic.