Colonel Chamberlain’s speech to Gettysburg mutineers

Our family has a tradition around the 4th of July. We watch the 1993 movie Gettysburg. The movie is based on Michael Shaara’s 1974 book, Killer Angels. The book is an excellent and well-researched account of the Gettysburg battle that combines historical detail with attention to understanding some of the key players. The movie covers the battle at Gettysburg on July 1-3, 1863, where more than 50,000 union and confederate troops lost their lives in battle.

We have this tradition not just because Gettysburg is a great movie (it is), but because it helps us remember the sacrifices so many people have made to make and preserve this great nation of ours, the United States of America. After watching the movie we often read the “Gettysburg Address,” the speech President Abraham Lincoln gave at the dedication of the Gettysburg field as a national park. He ends with the plea “that government of the people, by the people, for the people, shall not perish from the earth.”

We celebrate the 4th of July as Independence Day, the anniversary of the birth of our nation. But we also recognize July 4 as the anniversary after the day of the bloodiest battle on our land since the founding of our country. It was fought in defense of our nation and the principles it was founded upon. Good men died so that children could grow up and become even better men and women. It is important that we remember who we are and who and what came before us, and that we renew our desire to preserve this great nation of ours and make it and our world a better place.

One of the central characters in the movie is Colonel Joshua Lawrence Chamberlain, who commanded the 20th Maine, a part of the Union Army’s Fifth Corps. Early in the movie (about July 1, 1863), Colonel Chamberlain was given charge of a group of mutineers from another (disbanded) Maine regiment. One of the best scenes of the movie is Colonel Chamberlain’s comments to the mutineers. Because of it, most of the men took up arms and joined the 20th Maine, which proved pivotal in the upcoming battle at Gettysburg. This speech, as rendered in the movie, is a classic. Here it is.

This regiment was formed last summer in Maine. There were a thousand of us then. There are less than three hundred of us now. All of us volunteered to fight for the union, just as you did. Some came mainly because we were bored at home — thought this looked like it might be fun. Some came because we were ashamed not to. Many of us came because it was the right thing to do. And all of us have seen men die.

This is a different kind of army. If you look back through history, you will see men fighting for pay, for women, for some other kind of loot. They fight for land, power, because a king leads them or — or just because they like killing.

But we are here for something new. This has not happened much in the history of the world. We are an army out to set other men free. America should be free ground — all of it. Not divided by a line between slave state and free — all the way, from here to the Pacific Ocean. No man has to bow. No man born to royalty. Here, we judge you by what you do, not by who your father was. Here, you can be something. Here, is the place to build a home. But it’s not the land. There’s always more land. It’s the idea that we all have value — you and me. What we’re fighting for, in the end, we’re fighting for each other.

Sorry, I didn’t mean to preach. You, you go ahead. You talk for awhile. If you — If you choose to join us, you want your muskets back, you can have ’em. Nothing more will be said by anybody anywhere. If you choose not to join us, well you can come along under guard, and when this is all over I will do what I can to see you get a fair treatment. But for now, we’re moving out. Gentlemen, I think if we lose this fight, we lose the war. So if you choose to join us, I’ll be personally very grateful.

I wonder if it would help if our elected representatives in Washington watched this movie together.

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The boiling frog metaphor

We’ve all heard the story. You place a frog in a pot of boiling water and it jumps out to safety. You put a frog in a pot of cold water and slowly turn up the heat and it cooks to death. It’s a great metaphor. If we are unaware of problems that develop slowly, we may never recognize there is something to be concerned about until it is too late.

Recently, a writer describing a contemporary musical number used the metaphor (here) to explain how “people wouldn’t realize they’ve been suckered into a musical until it was too late.”

However, the truth is that the story is not true. You put a frog in a pot of cold water and slowly turn up the heat, the frog gets agitated and jumps out. In fact, it’s really hard to keep a frog still enough in a pot of water to test the theory. Some scientists did this in the 1800s producing mixed evidence for the boiling frog story. Today experts generally agree that the boiling frog story is hogwash, or perhaps better said, “frogwash”.

Prisoner’s Dilemma in the classroom

The Prisoner’s Dilemma is a model that illustrates a conflict between the interests of individuals and the interests of those individuals as members of a collective or group. In most versions of the game, two or more persons can cooperate and receive a collective reward that is greater than the sum of individual rewards they could earn if they choose not to cooperate. The incentives of the game are such that the persons have an individual incentive not to cooperate, thus making them collectively worse off had they chosen to overlook their individual interests and instead think as a group. The game is famous in economics and other social sciences. Wikipedia has a lengthy discussion of the game, its refinements and implications here.

Even though the Prisoner’s Dilemma has been around for decades it is still a fun game to play with students. In my microeconomics class today I offered the following opportunity for the class to earn extra credit:

“You can earn extra credit by selecting the amount of extra credit points you want. However, if more than 4 of you select option B, then the entire class will receive 0 extra credit points.”

Option A was to earn 1 point extra credit.
Option B was to earn 4 points extra credit.

I use a web-based student response system so that students could register their choice on their cell phones and I would see the results immediately. Not surprisingly, of the 180 in class today, 10 chose option B, leading to no extra credit for the class. When I gave the class a chance to do it over again and even talk to each other, the number who chose option B increased to 17.

The incentives to choose option B are pretty strong here — getting 3 more extra credit points than one could get by cooperating with everyone else in the class and getting just 1 point. Even when I changed the payout structure so that option A gave 3 points and option B 4 points, there were 6 students who still chose option B, thus negating the extra credit opportunity for everyone.

What I find interesting here is not that there were some students who chose option B but that so many in the class chose option A. At least 90 percent of students were willing to forgo their individual interest of choosing option B in order to cooperate for the collective good.

In economics we teach that when people pursue their self-interest things will work out the best for everyone. But sometimes they don’t. Sometimes the pursuit of one’s interests can be damaging to others and the collective whole. Why does self-interest work in some cases but not in others? And when the incentives for collective action are not ideal, what can we do to encourage or promote more cooperative thinking and behavior?

Russell Crowe, in the movie A Beautiful Mind, played the mathematician John Nash who developed this idea. He explains the problem and solution nicely in this clip from the movie.

I asked my class these questions and got a lot of interesting responses. Because the student response system I use saves student responses, I can list some of them here:

“Anonymity is the problem”

“People only act in their self interest and don’t want to work as a whole for the better of everyone”

“so basically we need to be communists in order for this game to work”

“People are greedy”

“people think they deserve it more than others”

“Throw tomatos (sic) at the people who chose B”

“you do what you have to do”

“Take away the second option”

“build a wall make the people who picked B pay for it”

“this game don’t work cause we got more than 4 selfish people in class”

“Not as many laws and restrictions”

“Because people think that everyone else will pick A and that they will end up getting more when in reality they hurt everyone else”

“Need more communication and honesty”

“Sometimes selflessness is the answer”

“If people weren’t greedy then we would at least be able to get one point extra credit”

“All it takes is one bad egg to ruin it for everyone”

“punish those who answered B”

“Communicate with others to achieve extra credit”

“Put people who choose B in jail”

“freshmen think that 1 point if extra credit is actually going to influence their grade”

“do your work maybe you wouldn’t need to pick B”

Resolving the Prisoner’s Dilemma requires careful structuring of the way people interact and enforcement of the formal rules and informal norms we develop to promote cooperation. It also requires that people exercise self-restraint in the pursuit of their self-interest, since no rules or monitoring mechanisms are perfect. We wouldn’t (or shouldn’t) want to live in a society where such rules are perfectly enforceable. How to do this so as to protrct one’s freedom to choose makes for a fun discussion in class.

In the end I gave everyone in the class who chose option A in the last round of the game (in which 3 points were possible) the 3 points extra credit. I don’t know if the class learned much, but I hope they left feeling better about their teacher.

 

 

Business leadership and the making and punishing of unethical employees

A study published in the current issue of Business Ethics Quarterly links ethical leadership with improved engagement of employees at work, greater employee voice and lower intentions for employees to exit. In other works, when employees perceive or know their leaders to be ethical, they are more likely to feel good about being at work, more willing to communicate their opinions, recommendation, concerns or ideas to their supervisors, and less likely to leave or intend to the leave the business.

In this context, an ethical leader is someone who is a moral person and who models high moral standards at work. The specific indicators of ethical leadership used in the BEQ paper draw from research by scholars at Pennsylvania State University. If valid, the indicators are informative. There are 10 of them. Ethical leaders

  • conduct their personal lives in an ethical manner
  • make fair and balanced decisions
  • can be trusted
  • ask what the right is when making decisions
  • listen to their employees
  • discuss business ethics and values with their employees
  • have the best interest of their employees in mind
  • set an example of behaving ethically at work
  • discipline employees who violate ethical standards
  • define success by the way results are obtained in addition to results.

I would add one more item to the list. When designing and implementing performance measures and incentives, ethical leaders are careful to ensure that they are promoting incentives rather than pressures to perform. The line between incentive and pressure can be thin. Leaders who are not careful may find that their efforts to motivate workers create pressures for them to lie, cheat or steal.

The CEO of Wells Fargo is learning this lesson the hard way. According to the Wall Street Journal’s report of John Stumpf’s testimony during a Senate Banking Committee hearing yesterday (September 21), the Bank is accused “of fostering a culture where low-paid branch employees were pressured to meet impossible sales quotas to keep their jobs, and so signed up customers for products without their knowledge.” Pressure does not create an environment where employees behave ethically. Even well-meaning employees may find the temptation to fudge numbers or behave inappropriately too strong in such an environment. The Bank reported that it fired more than 5,000 employees for wrongdoing.

So, Wells Fargo created unethical employees and then punished them.

Reminds me of the statement by Thomas More in his book, Utopia, made famous by Drew Barrymore’s character Danielle (aka Cinderella) in the movie Ever After. Danielle is arguing with Henry, the Prince of France, for the release of her servant, who is bound with other poor and destitute prisoners for the America’s. Here is the exchange:

Danielle: A servant is not a thief, your Highness, and those who are cannot help themselves.

Henry: Really! Well then by all means, enlighten us.

Danielle (quoting More): If you suffer your people to be ill-educated, and their manners corrupted from infancy, and then punish them for those crimes to which their first education disposed them, what else is to be concluded, sire, but that you first make thieves and then punish them?

Henry: Well, there you have it. Release him.

That’s quite a commentary about one of the nation’s most prominent banks.

Unintended consequences of new technologies

A couple of headlines from today’s Drudge Report caught my eye: 100 tiny robots replaced humans to wait in line… and Police use droid to snatch rifle from barricaded suspect….

I like new technologies. I like the smartphones, flat screen TVs, the satellite radio in the car I recently rented, and the fact that I can drive rather than walk or ride a horse to where I want to go. Technology can be great. But there can also be side effects and unintended consequences. As a trained economist, I think it is appropriate to ask whether the benefits of technologies outweigh the costs. There will always be costs, some of which we won’t recognize immediately.

Today I attended a lecture by a University of Missouri graduate student who did some work this summer in Guatemala with Heifer International. In one village she visited, women cooked food on open fire pits in their thatched houses. The fire pits created a lot of smoke in the homes. Heifer helped households get cooking stoves with ventilation pipes that took the smoke out of the homes. The stoves required less wood than the open fire pits and solved the problem of smoke in the rooms. But there was a side effect. Guatemala has a lot of rain. The open fire pits dried out the thatched roofs. The new stoves do not, hence the unintended consequence. There is also the advantage that smoke clears out mosquitoes and other insects, which doesn’t happen now.

An important problem that new technologies create is our becoming dependent on them. Dependency in turn can result in a loss of skills. Scholars refer to this as “deskilling.” How many people can answer what 7 x 8 equals, boil an egg or orient ourselves on a street without asking Siri?

Reminds me of the scene from the 2012 Avengers movie. SHIELD’s helicarrier is losing altitude because one of its rotors was damaged in an attack. Nick Fury tells the pilot to put the flying ship over the ocean. The pilot responds that they lost their navigation system. Nick Fury tells the pilot, “Is the sun coming? The put it on the left!” Nick didn’t forget how to navigate without GPS, but apparently the pilot did.

Let’s be wise about our use of technology. Before it makes us dumb.

Rent-a-friend

If you do not like your friends or do not have any close friends, should you be able to rent or pay someone to be a friend? Would you want to?

I teach an introductory microeconomics course. After discussing markets and teaching the basics of supply and demand today, I had a conversation with the class about the universal appropriateness of markets. Market, the price mechanism and the profit motive are great. When allowed to function, they offer quite a bit to society and largely account for our growing wealth and increased availability of goods and services, including advanced technologies we have come to enjoy and rely on today. However, do we want or need markets, the price mechanism and the profit motive dominating every aspect of our lives? Are there some things for which markets and prices should not be used?

I asked these questions and then showed a clip from the movie The Truman Show. In the movie, Jim Carrey’s character, Truman, is unaware that he lives in a movie set. His entire life has been displayed on TV. His wife and best friend are actors. The clip I show follows a scene where Truman has become suspicious about his existence. The show’s producer will stop at nothing to keep Truman on set, so he instructs Truman’s best friend, Marlon, to talk to Truman and convince him all is fine, with the words, “The last thing I would ever do it lie to you.” Is he really a best friend for Truman as a paid actor in the role of “best friend”? Should it matter to Truman? As outsiders watching the movie, do we care?

Michael Sandel, a Yale University philosophy professor, has famously written on this topic. See a TED talk he gave here. In his book, What Money Can’t Buy: The Moral Limits of Markets, Sandel writes,

“Today, the logic of buying and selling no longer applies to material goods alone but increasingly governs the whole of life. It is time to ask whether we want to live this way. … The most fateful change that unfolded during the past three decades was not an increase in greed. It was the expansion of markets, and or market values, into spheres of life there they don’t belong. To contend with this condition, we need to do more than inveigh against greed; we need to rethink the role that markets should place in our society. We need a public debate about what it means to keep markets in their place. To have this debate, we need to think through the moral limits of markets. We need to ask whether there are some things money should not buy.”

When I asked my students to give me examples of things they think money should not buy, many mentioned friends, family and love. These make sense. We want friends, family and love to be motivated by intrinsic considerations, not by extrinsic incentives. Money and other extrinsic incentives have a way of crowding out intrinsic motivation, a topic I have written about (here). Other students wanted markets out of education, insurance, health care, and some specifically mentioned textbooks. I can understand their frustration with textbooks, some of which are very, very expensive. But would education, insurance and health care be improved if markets were removed and providers and consumers were only intrinsically motivated? What if we taxed everyone and had the government pay for these services, would that improve things? We do that with national defense, so how about these other considerations? Lest there be confusion, this is not a question about whether goods are public or private but whether money and markets should govern their functions.

If you don’t want to rent-a-friend or meet and talk with real people, then  consider the Tokyo Game Show. As reported by Yahoo! news, attendees can flirt with virtual women. Now, instead of paying someone to be your friend you can buy a machine who will talk with you and ask how your day went. Let’s hear it for the power of market incentives.