Ideally, rational-comprehensive
analysis leaves out nothing important. But it is impossible to take everything
important into consideration unless ' important ' is so narrowly defined that
analysis is in fact quite limited. Limits on human intellectual capacities and
on available information set definite limits to man's capacity to be
comprehensive. In actual fact, therefore, no one can practice the
rational-comprehensive method for really complex problems, and every
administrator faced with a sufficiently complex problem must find ways
drastically to simplify.
An administrator assisting in the
formulation of agricultural economic policy cannot in the first place be
competent on all possible policies. He cannot even comprehend one policy
entirely. In planning a soil bank program, he cannot successfully anticipate
the impact of higher or lower farm income on, say, urbanization — the possible
consequent loosening of family ties, possible consequent eventual need for
revisions in social security and further implications for tax problems arising
out of new federal responsibilities for social security and municipal
responsibilities for urban services. Nor, to follow another line of
repercussions, can he work through the soil bank program's effects on prices
for agricultural products in foreign markets and consequent implications for
foreign relations, including those arising out of economic rivalry between the
United States and the USSR.
In the method of successive limited comparisons,
simplification is systematically achieved in two principal ways. First, it is
achieved through limitation of policy comparisons to those policies that differ
in relatively small degree from policies presently in effect. Such a limitation
immediately reduces the number of alternatives to be investigated and also
drastically simplifies the character of the investigation of each. For it is
not necessary to undertake fundamental inquiry into an alternative and its
consequences; it is necessary only to study those respects in which the
proposed alternative and its consequences differ from the status quo. The
empirical comparison of marginal differences among alternative policies that
differ only marginally is, of course, a counterpart to the incremental or
marginal comparison of values discussed above.
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