2008 Woodie Awards
Guest Column: Culture of conspiracy
Daniel J. Bianco
Issue date: 3/27/08 Section: Opinion
I've noticed that one of the overarching themes in modern college student philosophy is conspiracy theory. From Tim Hiller's March 6 column "Deceiving the Masses" to Matthew John Phillips' March 11 column "The Chicken Little Effect," it would seem that every entity more powerful than the individual American is looking to screw you. But is that really the case? Are corporations just looking to make a buck at the consumer's ill-expense? Does our government really seek absolute power through "fearmongering"? The answer: no. These arguments take on a flawed misuse of logic akin to Michael Moore's camera-splicing.
So Pfizer is "deceiving the masses" by running ads for their product with Dr. Robert Jarvik in them? Although the extent of Jarvik's involvement in the invention of the artificial heart is disputed, it's agreed he was nonetheless involved, and holds a doctorate degree in medicine and a masters in medical engineering. What is all the fuss about an ad promoting a prescription drug? This isn't a new phenomenon, and patients still must consult their physician before beginning prescription drug treatment.
Simply put, businesses are in business to make money, and though they might use seemingly deceptive tactics, market incentives exist to ensure that companies stay honest and give the consumer what they want. For every Enron, there are thousands of honest and reputable producers in the market.
But wait - how many times have you bought something only to return it shortly thereafter, then realizing a "no refunds" or "exchanges only" clause was stuck somewhere in fine print? Is the company deceiving you, or are you the idiot that didn't look carefully at the purchase agreement? A firm will always put their best foot forward when advertising. Imagine Sears is advertising a product with two notable purchase-agreement properties: "lifetime warranty" and "no refund." You're assured the product will last your entire lifetime, but you can never refund your purchase after the transaction. Why would Sears put "no refunds" in huge lettering at the top of their ad, and "lifetime warranty" in fine print at the bottom? Clearly, this wouldn't make sense.
A firm's competition in the market and their reputation with consumers play a huge role in keeping the company honest. From oil prices to the price of housing in College Park, it's tempting to just cry "price gouging," the claim that producers work together to ensure massive profits by keeping prices well above production costs. But the simple fact is, this is just another conspiracy theory at work. In a free market system, price adjusts to the interaction of supply and demand. Higher prices are the free market's way of allocating scarce resources to those who value them most. Prices also adjust to mitigate supply and demand shocks. So is the housing market priced unfairly for students? Or is there just too much demand and not enough housing to go around? Shortages and higher prices go hand in hand. What's the answer here? It's tempting to cry for government intervention to "make it fair" through price controls, but as we saw during the 1970s oil crises, price controls simply result in excess demand and massive shortages.
The U.S. government: Now there is another entity that must be constantly using its power to screw over the American people, right? Not really. Phillips accuses the government of playing a game of "Chicken Little" with what he deems an unnecessary fear of terrorism and violent crime. Well terrorism happens, as does violence in our society. He speaks of Sept. 11, 2001 as if he does not remember it. He speaks of using "concerted thought and intelligence" without any action, which does nothing to mitigate the threat of violence and terrorism on American soil. When it comes down to it, you cannot disarm an armed man with mere thought. The best way to neutralize a threat is to attack it directly. You can change minds, but you can't completely eradicate the ideas of violent fundamentalists, and you can't eliminate society's evils. Ironically enough, intelligence certainly does play a large role in protecting us from terrorism: the intelligence community, that is. The FBI, the CIA and other intelligence agencies are all full of patriotic Americans sworn to protect this country from harm. As we've seen in the past, there are those who seek to take as many American lives as they can, regardless of age, race, gender or status as a civilian.
Although it's tempting to look at corporations and government entities and cry conspiracy, it is a fool's error to do so. This is not to say corruption never occurs, but that it's far rarer than the rampant, infectious disease the media portrays it as. It is merely imprudent to look at corporations and government and make decisions based on media reports, incomplete information and face-value logic.
Daniel J. Bianco is a senior economics major. He can be reached at dbianco@umd.edu.
So Pfizer is "deceiving the masses" by running ads for their product with Dr. Robert Jarvik in them? Although the extent of Jarvik's involvement in the invention of the artificial heart is disputed, it's agreed he was nonetheless involved, and holds a doctorate degree in medicine and a masters in medical engineering. What is all the fuss about an ad promoting a prescription drug? This isn't a new phenomenon, and patients still must consult their physician before beginning prescription drug treatment.
Simply put, businesses are in business to make money, and though they might use seemingly deceptive tactics, market incentives exist to ensure that companies stay honest and give the consumer what they want. For every Enron, there are thousands of honest and reputable producers in the market.
But wait - how many times have you bought something only to return it shortly thereafter, then realizing a "no refunds" or "exchanges only" clause was stuck somewhere in fine print? Is the company deceiving you, or are you the idiot that didn't look carefully at the purchase agreement? A firm will always put their best foot forward when advertising. Imagine Sears is advertising a product with two notable purchase-agreement properties: "lifetime warranty" and "no refund." You're assured the product will last your entire lifetime, but you can never refund your purchase after the transaction. Why would Sears put "no refunds" in huge lettering at the top of their ad, and "lifetime warranty" in fine print at the bottom? Clearly, this wouldn't make sense.
A firm's competition in the market and their reputation with consumers play a huge role in keeping the company honest. From oil prices to the price of housing in College Park, it's tempting to just cry "price gouging," the claim that producers work together to ensure massive profits by keeping prices well above production costs. But the simple fact is, this is just another conspiracy theory at work. In a free market system, price adjusts to the interaction of supply and demand. Higher prices are the free market's way of allocating scarce resources to those who value them most. Prices also adjust to mitigate supply and demand shocks. So is the housing market priced unfairly for students? Or is there just too much demand and not enough housing to go around? Shortages and higher prices go hand in hand. What's the answer here? It's tempting to cry for government intervention to "make it fair" through price controls, but as we saw during the 1970s oil crises, price controls simply result in excess demand and massive shortages.
The U.S. government: Now there is another entity that must be constantly using its power to screw over the American people, right? Not really. Phillips accuses the government of playing a game of "Chicken Little" with what he deems an unnecessary fear of terrorism and violent crime. Well terrorism happens, as does violence in our society. He speaks of Sept. 11, 2001 as if he does not remember it. He speaks of using "concerted thought and intelligence" without any action, which does nothing to mitigate the threat of violence and terrorism on American soil. When it comes down to it, you cannot disarm an armed man with mere thought. The best way to neutralize a threat is to attack it directly. You can change minds, but you can't completely eradicate the ideas of violent fundamentalists, and you can't eliminate society's evils. Ironically enough, intelligence certainly does play a large role in protecting us from terrorism: the intelligence community, that is. The FBI, the CIA and other intelligence agencies are all full of patriotic Americans sworn to protect this country from harm. As we've seen in the past, there are those who seek to take as many American lives as they can, regardless of age, race, gender or status as a civilian.
Although it's tempting to look at corporations and government entities and cry conspiracy, it is a fool's error to do so. This is not to say corruption never occurs, but that it's far rarer than the rampant, infectious disease the media portrays it as. It is merely imprudent to look at corporations and government and make decisions based on media reports, incomplete information and face-value logic.
Daniel J. Bianco is a senior economics major. He can be reached at dbianco@umd.edu.
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