Tag: benefit

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Marc Aurel Book 9

For students of economics or business the paragraph 10 provides an interesting precursor of the concept of capital, interest and maybe even on human capital: „Man, god, and the universe all bear fruit, each in its own due season. No matter if common use confines the strict sense of ‚bearing fruit‘ to vines and the like. Reason too has its fruit, both universal and particular: other things grow from it which share its own nature.“  (Penguin edition) There are so many examples of the fruits that have grown on the trees of knowledge that we have become accustomed to the idea and continue to reap the benefits of those vines. Of course, some of these fruits have turned out to be more of a curse than a blessing. We seem to neglect the wise judgment which Marc Aurel mentioned along with the use of logic. (Also in this version Link)

 

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Scienceploitation

Science can be exploited to make unjustified profits from referring incorrectly to it. Social sciences, like economics may be used by banks to sell you products that refer to science only as part of their arguments if the science based inference fits their purpose. Scienceploitation is very common in the field of para-medicine and para-pharmaceutical products. Health promises sell. The time until an ineffective treatment reveals the unrealistic promise to be unachievable considerable profits have accumulated on the side of the selling company. Science has a hard time to counter the perils of scienceploitation. Advanced knowledge can be used and abused as any other method of convincing people to buy or subscribe to a product. The responsibility of the scientific community consists also in finding ever new ways to counter scienceploitation. AI will pose additional challenges as well as opportunities.  

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Learning by using

Is learning by using different from learning by doing? In an economic model to test the employment/unemployment impact of AI in the USA, Wang & Wong (2025) suggest an important impact of employees’ productivity due to learning by using AI. In terms of the traditional language of economics the employees who use AI in their work shall have comparative advantage to those who don’t.
In a model of job search in the economy there is the additional possibility, similarly to robots previously, that certain tasks maybe influenced by the, more or less, plausible threat of an employer to replace the employee by training an AI system to perform the tasks. The credibility and acceptability of such threats are likely to impact wage claims and unemployment risks. All these effects do not happen instantaneously, but evolve over time with varying speed. Hence, calculations of effects have high error margins. The resulting model yields oscillations of “labor productivity, wages and unemployment with multiple steady states in the long run”.
Learning by using seems to be a good description of what occurs at the micro level (the employee) and at the macro level of an economic sector or the economy as a whole. Society may guide the use cases of AI just as much as the business case to use AI, for example in the creative industries as infringements of copyrights may occur on a massive scale. However, learning by using is not free of risks to society at large. Just like allowing people to use automotive vehicles has lead and still leads to thousands of deaths annually, learning by using produces external costs. Overall, this is another case for a benefit/cost analysis for businesses, the economy and society.

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Pet effects

Pets have effects, some might cancel out each other. In psychology there is a long debate about the pet effect, which claims that pets have overall a positive effect on a person’s well being. This claim has recently been debunked. Many persons have taken over the care of an animal for their own comfort and regular daily routines. The Covid crisis had spurred such behavior in many people, but the scientific evidence taking into account the responsibilities that come with ownership of a pet, can outweigh the benefits of having company. The choice of a pet should certainly not be an easy or haphazard one. There is a need to consider the full range of pleasure and responsibilities. Traveling with pets and vacation times pose additional challenges that can cause stress to owners as well. Dog sitting or pet sitting platforms have been thriving since the Covid pandemic and this is to the benefit of everyone involved.

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Investment Disinvestment

Asume we live in a world of fixed amounts of investments. The option to invest in a new project or product will automatically reduce the amount of investment in another product. The investment decision, therefore, is subject to opportunity costs. A recent study by Naci et al. (2025) applies this rationale to the investment in new drugs compared to financing other traditional treatments. The results for the U.K between 2000 and 2020 revealed that the „quality-adjusted life-years (QALYs)“ is not in favor of the investment in new drugs. The relatively small numbers of beneficiaries of the new drugs is compared to the many other persons who could have benefited from the less costly previous treatment. Investment in one new drug causes disinvestment in other ones. The overall balance for the UK turned out to be negative. Particularly the disinvestment in prevention of diseases appears to have very detrimental effects in view of the results based on this study. Preventative measures are relatively cheap compared to the estimated 20.000 pounds for one additional quality adjusted year of life for a new drug. The message is: choose your health investments wisely to avoid ever rising health costs and health insurance. (Image: rest room Belgium)

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Patient Empowerment

The empowerment of patients is a well-established practice in the treatment of diabetes. Measuring your own blood sugar and adjusting your medication to the self-monitored data is common practice. For patients with high blood pressure this patient empowerment is less prevalent. A medical study carried out in Valencia (Spain) by Martínez-Ibáñez et al. (2024) has tested the effects of such a self-monitoring and self-medication experiment.
The results publishes in (JAMA) gave rise to considerable attention in the profession as the empowerment of patients is one way out of the likely increasing shortage of medical professionals in aging societies. Whereas other studies found that total costs to the medical system might increase, the study in Spain provides evidence of the cost-reduction effect of such an empowerment. 24 months after the beginning of the trial. After the establishment of a “medication based on an individualized prearranged plan used in primary care” the self-administering participants achieved a significant decrease in their blood pressure that lasted until the end of the study after 2 years. The drop-outs of the study seem to follow a random pattern.
The conclusion gives support to the potential of patient empowerment in the widespread treatment of higher blood pressure beyond the regular visits of medical doctors. The monitoring of changes in lifestyle add to this to keep the costs of health care under control in aging societies.