Monday, April 30, 2012

Non-Comprehensive Analysis (4b)


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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