Skip to main content

The Consequences of Libertarian Paternalism


Many of you are probably familiar with Thaler and Sunstein's breakthrough book, "Nudge", a behavioral economics book that caught fire a couple of years back with a philosophy they coined, "Libertarian Paternalism".

Yeah, that philosophy didn't come across too well in the libertarian community. But, not all of their recommendations are as creepy as they sound. And from a behavioral economics standpoint, it's simply fascinating material.

For instance, economists recently tried to determine why certain countries had such high rates of organ donation, and some had such small rates? Especially when the countries with such disparate ratios seemed to have so many other similarities?

The answer? If, when renewing your driver's license, your form says "check this box if you would like to opt-in to your state's organ donation program." Most people don't.

But when your form says, "check this box if you would like to opt-OUT of your state's organ donation program." Most people also don't.

What's going on here? Laziness. And that's the idea behind "Nudge". The government making the default choice the subjective "best" one. Knowing that your laziness will default you into the "best" choice. For instance, they theorize that 10% of your salary should automatically go into your savings account. Unless you opt-out of course. Their theory is that most people are too lazy to do so. And so they get to experience the effectual benefits of saving.

As a libertarian, you should rightly be concerned with the possible extents of this philosophy. But "Nudge" led me to a thought the other day, that someone quickly characterized as paternalistic. And I wanted your feedback.

I have alcoholics on both sides of my family. I see the devastating effects firsthand. These people who, in their best moments, deeply desire to be free from this burden.

Here was my idea. A recovering alcoholic could willingly go to the DMV, and have a small stamp put on their license. A "do not serve me alcohol" stamp.

My friend called this "big brother". I defended it by claiming this was a willing process. There would be no mandate. And he countered that I was depending on state law that requires establishments to card people.

And at that point, I turn to you. How often is pragmatism un-libertarian?


Eric Olsen,
Regular Columnist, THL
Articles | Author's Page | Website
Labels:

Popular posts from this blog

Obama keeps pushing the bipartisan religion of interventionism

Michael Scheuer is deadly accurate - foreign interventionism is a bipartisan religion (or disease, whichever you prefer). Too often, I believe, Americans think about Washington’s interventionism only as the actual physical intervention of U.S. military forces abroad in places where no U.S. interest is at risk. That activity certainly is intervention, but President Obama’s despicable decision last week to have his administration leak intelligence claiming that Israel has concluded an agreement with the government of Azerbaijan to allow its use of Azeri airfields for an air strike on Iran is just as much an unwarranted intervention by the United States government. Readers of this blog will know that I carry no brief for Israel, that I believe it is a state that is irrelevant to U.S. national interests, and one whose U.S.-citizen supporters are disloyal to America and involved in activities that compromise U.S. security and corrupt the U.S. political system. That said, Israel — l...
Read more

How Thorough a Brainwashing

Saw this on Facebook: Left this comment: It's more thorough of a wash job than that. They don't just believe they are not brainwashed, the question has never occurred to them and as long as they keep reading TIME and watching MTV, it's *impossible* for the question to occur to them. Oh brave new world, that has such people in it. EDIT: And one more thing-- don't ever stop considering what questions it is currently impossible to occur to you . This is what I've been thinking about a lot lately and I'm worried just how large and numerous my own blindspots are. The only solution is to be as intellectually curious as possible. To learn voraciously. To read things that challenge us. To read things that are hard for us to understand and then try to understand them. To expose ourselves to ideas far removed from our present culture and place on the timeline. Read old books. Read foreign books. Turn off the TV. You have already absorbed its biases and blindspots. ...
Read more

How To Gain More Twitter Followers

Earlier today, I wrote : "My goal is to write a book before the end of March. My goal is to spend no more than a week from start to publication, spending as much time as I need in order to get it done during that week. My goal is to give it away to you for free here on HumbleLibertarian.com. What's a goal you have? Something you may have been putting off for years? Something you could accomplish in one month if you were determined? If it's near-term enough of a goal, and specific enough of a goal, and you share it in the comments below, feel free to tell me how I can help you and I'll do whatever I can. If it's a libertarian / news / politics-related goal, my manner of help would be easy to determine. I could promote it, introduce you to someone via email, (etc.). If it's something apolitical like quit smoking cigarettes, start exercising, learn guitar, start a business, gain more Twitter followers, learn another language, eat a paleo diet, or...
Read more
–––As Featured On–––