5 May
2010

Can We Strike A Balance Between Justice And Consequence?

In the course of political reasoning, there is a spectrum upon which all arguments fall.  At one end we have justice – what can be considered absolutely right versus absolutely wrong.  On the other?  Consequences, the unintended outcomes of our purposefully good and noble actions. Such is the ying and yang relationship between two schools of thought – deontology and consequentialism.

Outrage rages on both sides of the aisle.

Outrage rages on both sides of the aisle.

We spoke often and at length about these diametrically opposed philosophies in business school.  Is it right to donate to poor people in Africa?  Bono and most others would say, “Yes, obviously.”  Now consider that those same individuals are citizens of an oppressive kleptocracy.  Knowing full well that most, if not all, of your donations will line the pockets of tyrants, do you still give?  At what point on the spectrum do you find the risk versus reward acceptable?

This is the question we can pose to those politicians who rail away at one another from polar ends of two heated debates – (1) healthcare reform and (2) immigration reform. In the first, liberals argue that access to healthcare should be a fundamental right for all citizens while conservatives believe that the financial consequences will be too devastating for the country to bear.  Conversely, with regard to immigration reform conservatives believe we have the fundamental right and obligation to send illegal aliens home while liberals fret about the unintended consequences that may result from practices like ID checks and police profiling.

I have no doubts about either party’s at-the-ready ability to explain away these inconsistencies.  Says Joe the Conservative: “Healthcare has never been a right in this country whereas immigration control is the law of the land.” Lucy Liberal, in retort: “What about ‘Give us your tired, your weak, your huddled masses, yearning to be free?’  This is our legacy, as is the pursuit of life and happiness which, coincidently, our government can deliver via a stable, affordable, and accessible healthcare program.”  In no way am I trying to validate or endorse either side’s argument here.  Instead, my hope is to point out the peculiarity in the rationales of both.  How can someone so vigorously defend the virtuous and just in one moment, consequences be damned, then turn around and hammer home the need for cautious, rational foresight at the expense of a well-intentioned mission in the next?  Would it not make more sense to govern towards the middle where we consider both justice and consequences for all issues?  Might this be the principled argument that can anchor a legitimate third party in this country, one that is centered between the Sean Hannitys and Rachel Maddows of the world?

We do not live in a vacuum where one polar philosophy is absolutely right and another is absolutely wrong.  For our nation to solve these types of complex issues, we need to be open and honest about bridging not the divide between liberal and conservative but rather the gap between justice (constitutional and natural) and the unintended consequences of our actions.  If we do not, we can all get ready for an endless stream of four-year political wars through the better part of our lives.  Chris Matthews may cherish that prospect.  I certainly do not.

2 May
2010

A River Ran Through It

This weekend offered up several lessons in Home Ownership 101:

  • Clean your gutters frequently
  • Make sure you don’t buy a home in a “flood plain”
  • Don’t wait for a leak to be your cue to spring for a new roof
  • The inside of your house might be free and clear … but what about your crawl space?
  • Storms in the south are NOT like storms in the north

Amidst endless rounds of towel laundry and Weather Channel monitoring, the topic of flood insurance came up and whether or not my wife and I had it.  This got me thinking:  How many people have this particular brand of asset protection in the United States?

The biggest storm Nashville has seen in years flooded our backyard.

The biggest storm Nashville has seen in years flooded most of our backyard.

A quick web search turned up a 2008 Time article that stated “fewer than 10% of people in high-risk areas” have flood insurance.  If this is the case, is it safe to assume the percentage is 2% in low risk areas?  1%?  Even less?

Why would people not have flood insurance?  Besides laziness, the only conceivable reason would be the price.  Of course, this rationale is suspect when you consider that (per FEMA) the average cost of flood insurance is $300 per year annually for a policy covering $100,000 in damages.  Factoring in a 2% YOY inflation rate over the 30-year life of a mortgage, this would mean that the present value of your flood insurance payments would be approximately ~$3,360.  The cost of replacing hard wood floors?  $5,000 to $8,000.  Furniture?  A bed, a dresser, a dining room table and chairs, couches, etc., etc., etc. … $25,000?  $50,000?

You get my point.  Purchasing flood insurance is a no-brainer.  Hopefully our neighbors and fellow Nashvillians had the foresight to see this in advance of Monsoon 2010 …

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