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progressivism, individualism, and the public ... - Telmarc Group

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The <strong>Telmarc</strong> <strong>Group</strong><br />

PROGRESSIVISM, INDIVIDUALISM, AND THE PUBLIC<br />

INTELLECTUAL<br />

"The libertarian aspect of our strategies lies in <strong>the</strong> straightforward insistence…people<br />

should be free to do what <strong>the</strong>y like…when we use <strong>the</strong> term libertarian to modify<br />

paternalism we simply mean liberty preserving…libertarian paternalism is a relatively<br />

weak…type of paternalism because choices are not blocked…a nudge … is any aspect of<br />

<strong>the</strong> choice … that alters people's behavior in a predictable way without forbidding any<br />

options…"<br />

Simply put <strong>the</strong> Government, <strong>the</strong> central Government in most cases, will determine what<br />

is good <strong>and</strong> bad, <strong>and</strong> <strong>the</strong>n it will establish speed bumps along <strong>the</strong> way to induce you to do<br />

<strong>the</strong> right thing. For example is cookies <strong>and</strong> sodas are deemed bad for you, <strong>the</strong>n <strong>the</strong>y will<br />

require that cookies <strong>and</strong> soda be placed behind all items on <strong>the</strong> lunch counter so that you<br />

get induce to getting <strong>the</strong> apple or orange because it is closer. At least that is how it works.<br />

However all one has to do is look at <strong>the</strong> drug problem <strong>and</strong> we try to make getting drugs<br />

more difficult than say c<strong>and</strong>y <strong>and</strong> what happens, we spawn a drug business.<br />

The approach <strong>the</strong>y are trying to promulgate is one which has <strong>the</strong> elements of<br />

Governmental paternalism, <strong>the</strong> central Government decides <strong>and</strong> controls. The alternative<br />

is a Coasian approach. If you smoke, you pay a fee on your cigarettes which should go to<br />

reimburse <strong>the</strong> putative costs. If you are obese <strong>and</strong> have Type 2 Diabetes you pay a fee for<br />

carbohydrates or <strong>the</strong> pounds you are overweight. Cause <strong>and</strong> effect are connected.<br />

In a review of <strong>the</strong> book by Cassidy he writes 178 :<br />

"Once you concentrate on <strong>the</strong> reality that people often make poor choices, <strong>and</strong> that <strong>the</strong>ir<br />

actions can harm o<strong>the</strong>rs as well as <strong>the</strong>mselves, <strong>the</strong> obvious thing to do is restrict <strong>the</strong>ir set<br />

of choices <strong>and</strong> prohibit destructive behavior. Thaler <strong>and</strong> Sunstein, showing off <strong>the</strong>ir roots<br />

in <strong>the</strong> Chicago School, rule out this option a priori: “We libertarian paternalists do not<br />

favor bans,” <strong>the</strong>y stare blankly. During a discussion of environmental regulations, <strong>the</strong>y<br />

criticize <strong>the</strong> Clean Air Acts that banned some sources of air pollution <strong>and</strong> helped to make<br />

<strong>the</strong> air more breathable in many cities. “The air is much cleaner than it was in 1970,”<br />

<strong>the</strong>y concede, “Philosophically, however, such limitations look uncomfortably similar to<br />

Soviet-style five-year plans, in which bureaucrats in Washington announce that millions<br />

of people have to change <strong>the</strong>ir conduct in <strong>the</strong> next five years.”<br />

If you start out with <strong>the</strong> preconceptions about free choice of John Stuart Mill or Friedrich<br />

Hayek, it is difficult to get very far in <strong>the</strong> direction of endorsing active government. (This<br />

is precisely <strong>the</strong> problem that <strong>the</strong> New Liberals of <strong>the</strong> late nineteenth century, men like<br />

L.T. Hobhouse <strong>and</strong> T.H. Green, faced.) Once again, consider <strong>the</strong> subprime crisis. At this<br />

stage, it is hard to find anybody willing to defend some of <strong>the</strong> mortgage industry’s<br />

practices, such as offering gullible borrowers artificially low teaser rates that shot up<br />

after a couple of years. Hard, but not impossible. “Variable rate mortgages, even with<br />

teaser rates, are not inherently bad,” Thaler <strong>and</strong> Sunstein write. “For those who are<br />

178 http://www.nybooks.com/articles/archives/2008/jun/12/economics-which-way-for-obama/?page=3<br />

Page 177

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