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by Zelphyr
2899 days ago
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I don't think he was referring to harsh sentences or punitive measures when someone breaks the law. I think its more that when its life and not the Government that is going to punish you for failing, you're going to work harder at not failing. In addition to the punishment provided by the Government there is also fall back mechanisms (bankruptcy protection, social security, medicare/medicaid, etc...) that they provide. I would counter that without those punishments and protections, its possible that fewer people would do things like start businesses, for example. I don't really know. I'd love to see some data on this. Seems to me that instead of rushing to one extreme or the other (no Government vs big Government), finding a good balance between the two is going to be the most productive for us all. |
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> I would counter that without those punishments and protections, its possible that fewer people would do things like start businesses
Again, the evidence rather strongly suggests the opposite.
As people's brains are more stressed out by the fear of failing, their decision making gets worse not better. There's tons of evidence that shows that being poor severely screws with your ability to make rational, intelligent decisions about long term planning. (https://www.theatlantic.com/business/archive/2013/11/your-br... ; https://theconversation.com/study-links-poverty-and-poor-dec...)
Likewise, there's data that shows one of the things that's special about entrepreneurs is the fact that they have strong familial safety nets. Part of their risk taking is literally that the risks are less risky for them, because their families will catch them. Which suggests that, if you want to increase the number of new businesses - implement a stronger social safety net (like a basic income). (https://www.theatlantic.com/politics/archive/2015/03/welfare... ; http://www.nber.org/papers/w19276.pdf?new_window=1) . The paper I linked there focused on the "smart" and "illicit" avenues and completely brushed past the "come from wealthier families" part, but I've seen other papers (that google isn't coughing up readily in the 5 minutes I have right now) that focused more on that latter part.
Conversely, you just have to look at the countries that do a good job of taking care of their citizens - Scandinavia, Canada, etc - to see pretty strong evidence for the idea that a well cared for populace is able to make better decisions.