Monday, June 21, 2010

Why all the questions?

I am surprised that so many people ask questions about why more things were not done to prevent the oil spill in the Gulf. The answer to me seems relatively simple. To create a safe system that is resilient requires that redundancy be built into the system. In other words, it requires that a number of safeguards and backup systems be developed and be put in place to, first of all, prevent an accident, and to then allow a quick recovery from an accident if one occurs. Unfortunately, all of this requires money. And money spent on safety and prevention comes off at the bottom line. Companies that design and install these systems are not going to be as profitable as companies that do not. And given that spills like the one that is occurring now in the Gulf are a relatively low probability event, companies would prefer to take the risk. If they spend the money on safety and prevention, they will not be as profitable as other companies that do not. Greed is good. Right?

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