One of the examples he used is the cost-benefit analysis in Ford Pinto case. According to Wikipedia,the Ford Pinto model became a focus of a major scandal when it was alleged that the car's design allowed its fuel tank to be easily damaged in the event of a rear-end collision which sometimes resulted in deadly fires and explosions. Critics argued that the vehicle's lack of a true rear bumper as well as any reinforcing structure between the rear panel and the tank meant that in certain collisions, the tank would be thrust forward into the differential, which had a number of protruding bolts that could puncture the tank. This, and the fact that the doors could potentially jam during an accident (due to poor reinforcement)allegedly made the car less safe than its contemporaries.
Ford allegedly was aware of this design flaw but refused to pay for a redesign. Instead, it was argued, Ford decided it would be cheaper to pay off possible lawsuits for resulting deaths. Mother Jones Magazine obtained the cost-benefit analysis that it said Ford had used to compare the cost of an $11 repair against the monetary value of a human life, in what became known as the Ford Pinto memo. The characterization of Ford's design decision as gross disregard for human lives in favor of profits led to significant lawsuits. While Ford was acquitted of criminal charges, it lost several million dollars and gained a reputation for manufacturing "the barbecue that seats four."
Cost of Repairing Cost of Not Repairing
$ 11 per part 180 deaths x $200,000
x 12.5 million cars + 180 injuries x $67,000
+ 2000 vehicles x $700
$137 million = $49.5 million
(to improve safety) (to let it go)
Increased Health Care costs Tax revenue from cigarette sales
(due to lung cancer) Health care savings
(from early deaths)
Savings in housing costs
Saving from premature deaths is $1227.00 per person
If we can not put a price tag on human life, can we put a price tag on 3 months or 6 months of human life? If we can not put a price tag on 3 months or 6 months of human life (saved) and curb the use of extremely expensive drug, how the medical cost will be controlled? I don't think there is an easy solution.
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