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I thought you couldn't maximize for more than one variable, and so if society wants other outcomes such as low pollution laws need to tie high fines to it.
by mikedilger 7y ago
I thought you couldn't maximize for more than one variable, and so if society wants other outcomes such as low pollution laws need to tie high fines to it.
- cannonedhamster 7y agoThat would assume the law wasn't subject to regulatory capture. In theory high fines exist, in practice they really don't. See the debacle with Equifax and not having any real money in the fines to make people whole for their wholesale credit history being breached.
- dredmorbius 7y agoFines, prohibitions, or internalising externalised costs through some form of emissions fee fully accounting for damages and negative consequences. The costs approach effectively allows a firm to optimise for profits, but changes the weightings of various activities and products or inputs.
- bassman9000 7y agolaws need to tie high fines to it. Which Hayek was fine with (as shown in The Road To Serfdom). https://www.dailykos.com/stories/2013/09/27/1241729/-The-Road-to-Serfdom-actually-supports-regulations-worker-safety-and-extensive-social-programs https://www.dailykos.com/stories/2013/09/27/1241729/-The-Roa... I don't know if I buy the whole social program thing, but the quote is correct. Reader's Digest: https://mises-media.s3.amazonaws.com/Road%20to%20serfdom.pdf https://mises-media.s3.amazonaws.com/Road%20to%20serfdom.pdf