I'm delighted to report that Cass Sunstein will be guest-blogging this week about his new book, Nudge: Improving Decisions About Health, Wealth, and Happiness (that's pronounced "nuhdge," not "noodge"). The book, which is cowritten with Prof. Richard H. Thaler, argues for a sort of choice-enhancing paternalism — a framework in which the government can create "choice architecture" that would push people into better decisions (i.e., ones that the actors on reflection would ultimately agree are better for them) by taking into account natural cognitive biases to which people are subject, without restricting freedom of choice.
Sunstein is now Karl N. Llewellyn Distinguished Service Professor at the University of Chicago Law School, but he will be joining the faculty of Harvard Law School next year. He is the author of many books, including Republic.com 2.0, Worst-Case Scenarios, Infotopia, and Laws of Fear. He is also, by a large margin, the most-cited full-time law professor, judging by citations in law reviews. I'm sure that many of our readers will disagree with Sunstein's posts, but I'm also sure that they'll be interesting and provocative.
Sunstein is, of course, absolutely right about "libertarian paternalism," even if that is a horribly chosen turn of phrase.
Real libertarians, in contrast to Sunstein, totally ignore human nature, instead preferring to live in pie in the sky lala land.
This should be a sort of interesting set of posts. I predict on major theme will be realist versus idealist views of human nature.
Given the quality of VC lately, I expect these latest contributions by Sunstein to be significantly above the mean.
Or, put another way-
Yes, I know that's how it works in reality, but how does it work in theory?
Then I guess Sowell doesn't qualify as a "real libertarian?" What an odd comment to make.
restrictguide choice, is that the understanding of human nature used is inevitably flawed and biased. It must be flawed, because our understanding of human nature is narrow and limited. It must be biased, because it will be a product of the political process.Of course, you're correct. It is much more flawed to watch how real people work in the real world, and use those results (empirical studies). I think it is much better to allow the giant big heads of academe to posit what rational actors would do in any given situation, and craft the rules accordingly. Brilliant!
But then I'm funny that way.
Real libertarians, in contrast to Sunstein, totally ignore human nature, instead preferring to live in pie in the sky lala land.
That's pretty inaccurate. Libertarianism is basically one of the few political philosophies - if not the only one - that recognizes the realities of human nature.
When the description of his book makes him sound like the cartoonish villian of an Ayn Rand novel, I somehow think he should be avoiding libertarian-friendly blogs. Surely there's a Remembering Mussolini blog somewhere where this paternalism will be welcomed. Posting it here just seems like trolling.
This is a page out of Plato's handbook for totalitarianism. The common man is by nature incapable of deciding for himself how best to guide his life. So he needs the direction of a philosopher king (i.e., bureaucrats with the power to force on us their "choice architecture").
All such arguments, as with this rewarmed version of Plato, have never resolved the following, contradiction. Because of "natural cognitive biases" (i.e., "biases" inherent in human nature), man is incapable of making "better decisions." But somehow those same "natural biases" do not hamper the decision making abilities of individuals in government.
I think you are confusing issues (hopefully not deliberately). To use Social Security (as an example), society has determined, through the functioning of a democratic government, that this program will be in place. To allow opt out would end up destroying the program as has been covered ad infinitum. If that's what you want, then fine! But that's not the same as the other issues you mention (how about opt out for income tax... or opt out for sales tax...)
This is different than, say, organ donation or 401Ks. In those cases, research has shown that people are choosing options that are poorer for them (and/or society as a whole) not because it is their rational choice, but rather because of how the choice is presented. Present the choice differently, they make a better choice. But they still have the same option.
IOW- you can still choose to donate your organs or not, but instead of opt-in, it's opt-out.
Do you ever let, uh, facts or, uh, reading get in the way of a bon mot?
To use organ donation (as an example)...
If the change is from opt in to opt out, and it improves organ donation rates, how does that restrict your choices? Aren't they still the same?
What about 401Ks? If you are given a prospectus when you start employment, and told that if you do NOTHING 5% (plus some match) will be put away, and you can choose not to do that, and you can also opt out later, how does that restrict your choice?
I'm talking about human nature in the real world. Not human nature in theory.
We may not agree with Prof. Sustein, and maybe he won't be a full-time co-Conspirator. But surely he's a rather smart fellow, and we should listen seriously to what he has to say, right?
Could it be because these policies you suggest, besides being totally undesirable, are also politically impossible?
I can see default rules regarding 401k plans being adoped in the real world. I do not see opting out of social security or FDA regulatory schemes as being even remotely possible.
I think this your post is another great example of the libertarian obsession with the ideal over the real.
David Borgenicht is my cousin; I assure you he is not Cass Sunstein in disguise.
There is NO question about that.
Do YOU want the ONLY ones deciding what the defaults are to be from the LEFT!!!!
If you don't get into the game you can't win.
The reason this is important is simple. People are LAZY. No secret. No studies need to be performed. Everyone knows it. Let's make USE of it.
I'm talking about human nature in the real world. Not human nature in theory.
Yeah, that's the one I was talking about.