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Anecdotally, Corporations Are Sweethearts

August 15th, 2015 6 comments

It really ticks me off when somebody advocating the “free market” and opposing government regulation uses anecdotal evidence as proof that somehow corporations can be counted on to do the right thing. Here’s Carly Fiorina giving a definitive example of exactly that line of drivel:

I don’t think it’s the role of government to dictate to the private sector how to manage their businesses, especially when it’s pretty clear that the private sector, like Netflix, like the example that you just gave, is doing the right thing because they know it helps them attract the right talent. What I mean by the federal government not having its house in order, the federal government is in a shambles right now.- it’s inept. The night — TSA fails 96% of the time. That’s ineptitude.

You see? Netflix does it! So, no problem! That’s like the people who claim that since Obama was elected president, racism doesn’t exist any more. Besides, I can point to a cherry-picked, completely unrelated government activity that has an unusually high failure rate, so all businesses are pretty fantastic all on their own!

Notice that when citing industry giving paid maternity leave, Fiorina cites only a few companies, but when she points to government failure, she cites percentages. And to top it off, both are examples from the extreme ends of the spectrum that she wants to dishonestly highlight.

There’s a reason that anecdotal evidence, or cherry picking, is considered a logical fallacy. Just because Netflix announced a relatively enlightened policy (the policy does not cover everyone in the company, and does not apply at all to those who work in Netflix’s DVD or customer service divisions) does not mean that “the system is working.”

Even though there is a federal mandate to provide leave for companies with 50 or more workers, and some states, like California, have stronger mandates (which have shown to be overwhelmingly positive for companies), only 13% of workers have access to any kind of paid leave at all. That’s a failure rate of 87%, even after federal and state mandates. Before the mandates? Only 2% of workers had access to paid maternity leave. A failure rate of 98%. That’s what happens without government regulation—that’s how the industry “attracts talent.”

What was that you were saying about “ineptitude,” Carly?