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by webmaven
1703 days ago
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> The only effective punishment for those is to calculate how much they gained from it, calculate all profits that resulted from those gains, subtract all that from them, and then apply some huge fines as well in order to leave them in an even worse position than they started. From a practical (and economic/game-theoretic) perspective, you need to insert a risk adjustment (by which I mean, if their odds of being caught were 50%, you need to divide the fine by 0.5) and a net-present-value adjustment (if an additional dollar earned at the time of the violation is worth 80 cents at the future time of the judgment, divide the amount by 0.8) prior to the calculation of profits and the addition of punitive fines to be truly effective. |
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1. True justice would have been 100% chance of them getting caught. Since it was not 100%, it means they took advantage of some inefficiency in the system in order to get away with it. They should be punished for this disrespect through bigger fines. The less risk there was to them, the bigger the fine.
2. They earned dollars years ago. Today's dollars are worth far less. Therefore the fine, calculated based on that year's profits, must be adjusted upwards to compensate. Just like their profits must be adjusted upwards for inflation in order to make sense of their value in terms of today's dollars.