Applying Principles: Short Essays Based on the Philosophy of Ayn Rand, Economics of Ludwig von Mises, and Psychology of Edith Packer will be published October 1. It is my first ten years of blogging. The book may be preordered at Amazon and Barnes & Noble, with more information on its website books.jkirkpatrick.net. Here are edited selections from the preface.
Although I spent thirty-six years in college classrooms teaching undergraduate and graduate students business marketing, my bachelor’s degree was in philosophy. That subject influenced and underscored my entire career. As a result, I never let the day job of teaching students how to sell soap (as I would often describe my academic duties) become disconnected from its foundations in psychology, economics, or philosophy.
Indeed, I recognized early in graduate school that marketing, as well as the other business disciplines, are properly described as applied sciences that rest on those more fundamental fields. “Art” is sometimes used to describe applied science, but the usage is correct only if it is meant as a synonym. Often the word is meant to disparage applied fields because they are allegedly less precise or rigorous than “real” science, which means the physical or quantitative sciences. A student many years ago complimented me when she realized that advertising was as disciplined (her word) as finance, her major. There may not be universal equations in the applied human sciences, but the principles are universal in their appropriate context and the fields are “disciplined.”
Business as applied science is analogous to medicine and engineering. Medicine rests on biology for its more fundamental foundation and engineering on physics and chemistry. All fundamental and derivative special sciences, again in turn, rest on philosophy. All such fields are related and should be integrated, rather than isolated as they so often are in today’s academic world.
Thus, what I did when researching, writing, and teaching was to apply principles from the other, more fundamental fields, which explains my interest in epistemology and psychology, as well as the principles unique to marketing and advertising.
To illustrate further, the civil engineer whose goal is to build a bridge must know not just the fundamentals of physics and chemistry, but also the nature and composition of materials (used to build the bridge), and also the nature and behavior of rivers, which includes the history of the particular river over which the bridge will span and the nature and behavior of the river’s soil and water.
Applied science gathers all relevant concrete facts of the specific case it is working on, then uses, that is, applies, the universal concepts and principles of the fundamental sciences on which it rests, plus the narrower concepts and principles of its discipline.
Application is one of the two fundamental methods of cognition and is deductive. Generalization is the other and is inductive. We all use both every day in our lives. The two methods, as I say in my 2018 blog post, “are not the monopoly of scientists, philosophers, or academics in general.” Generalization gives us concepts and principles to guide our lives, while it also gives us theory and theoretical science. Application, which requires the previously acquired knowledge that generalization gives us, is what our medical doctors do, what Sherlock Holmes did, and what we do on a daily basis.
Application means we identify “a this as an instance of a that.” We present a cough and runny nose to our doctor and he or she quickly concludes, based on accumulated knowledge and patient history, that we have a cold. Similarly, Holmes saw that Watson was tanned and showed signs of having been wounded in a war; thus he concluded Watson recently came back from Afghanistan. And a child applies the previously learned concept of balance by shifting weight when learning to ride a bicycle. All three examples are processes of deduction, and illustrate how deduction is the predominant method of applied sciences, as well as everyday life.*
Deduction, therefore, is essentially what I have been doing when writing my blog posts. I am not in any intended way coming up with new concepts or principles, nor am I repeating the proofs of the great writers listed in my masthead, or others I may cite in a post as a reference. I take their ideas and apply them to specific issues.
The following essays are not journalistic as a newspaper column might be. I gave myself the assignment always to come up with something more fundamental than the news of the day, whether theoretical or historical, which last includes relevant citation of research.
The posts are organized into seven chapters, listed chronologically within chapter. Because of the way I write—“interdisciplinary” to use the academic jargon—one may quibble over some classifications. The chapters are “Capitalism and Politics,” “Academia,” “Education,” “Psychology,” “Epistemology,” “Youth Sports,” and “The Arts.”
I do have favorites. It was difficult to choose one per chapter, but here they are, in chapter order:
• “The Reductio of Bureaucracy: Totalitarian Dictatorship”
• “Because the Stakes Are So Small”
• “Go Fish!”
• “Look at Your Premises. Look. Look. Look!”
• “Why Don’t Facts Matter?”
• “Yes, There Is Crying in Softball”
• “Life in Three-Quarter Time”
My idea for publishing this collection comes from two books of columns: All It Takes Is Guts by economist Walter Williams and Double Standards by radio show host Larry Elder. I did not read these books from beginning to end. I skimmed the table of contents and read whatever caught my attention. Readers of this work might want to do the same.
* It is in this sense that history is also an applied science. We, as well as professional historians, look at past events, natural or human, and try to explain them, that is, identify their causes, by reference to our accumulated theoretical knowledge. Historians in the human sciences rely in particular on political philosophy, economics, and psychology. See Ludwig von Mises, Theory and History, amazon.com.
This blog comments on business, education, philosophy, psychology, and economics, among other topics, based on my understanding of Ayn Rand’s philosophy, Ludwig von Mises’ economics, and Edith Packer's psychology. Epistemology and psychology are my special interests. Note that I assume ethical egoism and laissez-faire capitalism are morally and economically unassailable. My interest is in applying, not defending, them.
Showing posts with label medicine. Show all posts
Showing posts with label medicine. Show all posts
Tuesday, September 07, 2021
From the Preface to Applying Principles
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Monday, November 26, 2007
"It's Just Being Turned into a Business"
This lament is often heard today about medicine and education, among other fields. Business, however, is the last thing medicine and education have been turned into. Bureaus of the government would be a more accurate description. Why the confusion between bureaucracy and business?
The simplest answer is that most people do not understand the difference between the two. A bureaucracy, as Ludwig von Mises points out, is an organization dominated by methods of managing the affairs of government, whereas a business is dominated by the goal of making a profit through customer satisfaction.
Bureaucracy, or rather, bureaucratic management, is a set of rules and a budget handed down from a higher authority to guide the running of a government department, such as the police, the courts, or the military. A business may have guidelines, usually called policies, and each department within the organization may have a budget, but the ultimate yardstick by which business activity is evaluated is profit-making by producing need- and want-satisfying products. When market conditions change, meaning customer needs and wants have changed, policies and budgets must be adapted lest the company fail to keep up with the competition and go out of business. Bureaucracy has no such ultimate yardstick. That is why the rules and budgets of government offices often ossify leading to the familiar refrain of the bureaucrat: "Rules are rules, fella; I don't make 'em, I just enforce 'em."
When bureaucratic rules, in the form of laws and regulations of business, intrude on the marketplace, businesses that are regulated will take on the characteristics of bureaucracies. This is because the laws and regulations of our mixed economy deflect attention away from profit-making through customer satisfaction to compliance with the rules of the bureaucracy. And the rules almost never coincide with what is best for the market. Ossification sets in and a "rules are rules" mentality eventually takes over. To the extent that a business is regulated by the government, to that extent it will be bureaucratic. Small businesses, except for local zoning ordinances and licensing requirements, usually escape regulation, that is, until they grow in size to a certain number of employees or level of sales; more rules, then, kick in.
Bureaucracy does not mean a large, hierarchically structured organization, such as General Motors or the Department of Justice. This is the popular misconception given by the media and management professors. General Motors is a private business that is highly regulated by the government; bureaucratic intrusions into the profit-making, customer-satisfying operation of the company are what make GM today seem so bureaucratic, not its size or structure. The Department of Justice makes no pretense at being a private business; it was founded as a bureaucracy.
The postal service, on the other hand, does pretend to be a business by mimicking the operations of private enterprise, such as subtracting costs from revenues and conducting market research surveys. But the post office is so thoroughly regulated and controlled by the government—it is a quasi-governmental agency under the executive branch—that it is a joke to consider it anything other than a bureaucracy. Public schools and state universities are government entities, making them bureaucracies by definition; private schools are highly regulated by the education czars and so are nearly as bureaucratic. Almost all operators of both types of school abhor the prospect of making a profit or of having to satisfy paying customers.
Yet occasionally the trustees of these institutions will demand that expenses be accounted for or that pay be tied to merit. This is when the screams of faculty are heard to say that education is just being turned into a business. More accurately, the demands are the bureaucracy trying to mimic business accountability by imposing additional rules on the system. The result is a stilted, heavy-handed decree of arbitrary edicts administered by a "rules are rules" mentality. (And pay tied to merit becomes a political popularity contest.) Add to this the fact that education today, which once was controlled at the local and state level, is rapidly becoming nationalized by the US Department of Education and you have education as a bureau of the national government.
The same attempts at mimicking business accountability can be seen in medicine with the cartel-imposed cost constraints of the insurance industry and Medicare. Medicine is hardly a free market today, nor was it prior to the current health-maintenance-organization/Medicare era. In the early twentieth century, the licensing monopoly of the American Medical Association drastically reduced the number of medical schools and hospitals and continues to keep that number low (1, 2, 3). The mess that we have now is just one bureaucratic monstrosity piled on top of the previous model. Calls for cost containment and accountability are not the calls of free enterprise. They are the panicked cries of bureaucrats who have no clue what they are doing.
But they do have their rules and the rules must be enforced.
The simplest answer is that most people do not understand the difference between the two. A bureaucracy, as Ludwig von Mises points out, is an organization dominated by methods of managing the affairs of government, whereas a business is dominated by the goal of making a profit through customer satisfaction.
Bureaucracy, or rather, bureaucratic management, is a set of rules and a budget handed down from a higher authority to guide the running of a government department, such as the police, the courts, or the military. A business may have guidelines, usually called policies, and each department within the organization may have a budget, but the ultimate yardstick by which business activity is evaluated is profit-making by producing need- and want-satisfying products. When market conditions change, meaning customer needs and wants have changed, policies and budgets must be adapted lest the company fail to keep up with the competition and go out of business. Bureaucracy has no such ultimate yardstick. That is why the rules and budgets of government offices often ossify leading to the familiar refrain of the bureaucrat: "Rules are rules, fella; I don't make 'em, I just enforce 'em."
When bureaucratic rules, in the form of laws and regulations of business, intrude on the marketplace, businesses that are regulated will take on the characteristics of bureaucracies. This is because the laws and regulations of our mixed economy deflect attention away from profit-making through customer satisfaction to compliance with the rules of the bureaucracy. And the rules almost never coincide with what is best for the market. Ossification sets in and a "rules are rules" mentality eventually takes over. To the extent that a business is regulated by the government, to that extent it will be bureaucratic. Small businesses, except for local zoning ordinances and licensing requirements, usually escape regulation, that is, until they grow in size to a certain number of employees or level of sales; more rules, then, kick in.
Bureaucracy does not mean a large, hierarchically structured organization, such as General Motors or the Department of Justice. This is the popular misconception given by the media and management professors. General Motors is a private business that is highly regulated by the government; bureaucratic intrusions into the profit-making, customer-satisfying operation of the company are what make GM today seem so bureaucratic, not its size or structure. The Department of Justice makes no pretense at being a private business; it was founded as a bureaucracy.
The postal service, on the other hand, does pretend to be a business by mimicking the operations of private enterprise, such as subtracting costs from revenues and conducting market research surveys. But the post office is so thoroughly regulated and controlled by the government—it is a quasi-governmental agency under the executive branch—that it is a joke to consider it anything other than a bureaucracy. Public schools and state universities are government entities, making them bureaucracies by definition; private schools are highly regulated by the education czars and so are nearly as bureaucratic. Almost all operators of both types of school abhor the prospect of making a profit or of having to satisfy paying customers.
Yet occasionally the trustees of these institutions will demand that expenses be accounted for or that pay be tied to merit. This is when the screams of faculty are heard to say that education is just being turned into a business. More accurately, the demands are the bureaucracy trying to mimic business accountability by imposing additional rules on the system. The result is a stilted, heavy-handed decree of arbitrary edicts administered by a "rules are rules" mentality. (And pay tied to merit becomes a political popularity contest.) Add to this the fact that education today, which once was controlled at the local and state level, is rapidly becoming nationalized by the US Department of Education and you have education as a bureau of the national government.
The same attempts at mimicking business accountability can be seen in medicine with the cartel-imposed cost constraints of the insurance industry and Medicare. Medicine is hardly a free market today, nor was it prior to the current health-maintenance-organization/Medicare era. In the early twentieth century, the licensing monopoly of the American Medical Association drastically reduced the number of medical schools and hospitals and continues to keep that number low (1, 2, 3). The mess that we have now is just one bureaucratic monstrosity piled on top of the previous model. Calls for cost containment and accountability are not the calls of free enterprise. They are the panicked cries of bureaucrats who have no clue what they are doing.
But they do have their rules and the rules must be enforced.
Labels:
bureaucracy
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education
,
Ludwig von Mises
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medicine
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