We saw the movie "Dark Waters" last night. It was fascinating to see so many local Cincinnati connections - the woman played by Anne Hathaway graduated from law school with my wife, I've been to a number of events at the Taft law offices, we have friends who work there, etc. But the real story is the story itself. There's a line that states "corporations are people." So very true, and our very human nature is to pursue our own short-term self-interests. Sadly, greed is one of self-interest's most powerful motivators. We see the price others often pay when such self-interest goes unchecked, whether when stock market bubbles burst, a mortgage industry collapse nearly takes the entire economy down with it, or when companies bend the law to their favor in dealing with the toxic products they may profit from. Such was the story in "Dark Waters."
Many applaud the deregulation taking place today, saying it unshackles business to pursue its self-interest. But even the grandfather of free market capitalism, F. A. Hayek, argued that regulation is necessary to capture the true cost of production in the price of the product, rather than passing it on unwittingly to their workers, neighbors and society in the form of injury, illness, death and the destruction of the natural environment. If that price is too high to make the product economically viable, then so be it. This movie clearly proves how correct Hayek was.
Yes, business has a strong distaste for regulation - and regulation should be scientifically and morally reasonable. But there NEEDS to be a healthy tension between industry and the regulators, lest crony capitalism put the public at risk for the benefit of the well-connected. At a time when a coal lobbyist heads the EPA, an oil industry lobbyist is Secretary of the Interior, a pharmaceutical lobbyist is Secretary of Health and Human Services, a former Raytheon executive is Secretary of Defense and the founder of Perdue Farms is Secretary of Agriculture, it would appear that we have the fox guarding the hen house. We may enjoy that our 401ks are appreciating nicely, but the price we pay for those financial gains today (our short-term self-interest) is likely to be the health and well-being of our children, our environment and our society tomorrow, long after those responsible for the damage have departed the scene. The time to protect them from that future is now, but if those who have the power refuse to act responsibly, then we have the responsibility to change those who are in power. The future is in our hands.
