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by hellojesus
345 days ago
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My anecdote was used to show how the policy introduces moral hazard and deadweight loss. I would equally oppose it, as I do things like government mandated smoke-free restaurants, even if they benefitted me. I would moreso prefer that smoke-free restaurants exist because the market dictates it wants them by not transacting with smoke-partitioned restaurants. > everything from the roads, breathable air, a widespread and capable workforce, a dynamic labor market, powerful financial markets, a justice system, fire departments, and lots of consumer protections so we can focus on growth instead of spending all our time trying to research if your bank is actually a scam or if the restaurant down the street washes their hands enough. There is certainly some gain in being able to outsource research, but it is difficult to determine if it is a net good for society or the individual due to the moral hazard it generates. Not worrying about your bank being a scam allows actual banks to take on outsized risk and then not face any repercussions. It skews the appetite for risk that disproportionately benefits risk takers. For a recent example, see the Silicon Valley Bank failure, which the FEDs totally bailed out to prevent a collapse across many more banks, mostly because those banks overleant at low mortgage rates and couldn't sell the low interest notes at face value after the rise in interest rates, leading to a liquidity crisis. Focusing on growth comes at a cost; lots of inefficies are introduced. Instead, we could focus on being efficient and low waste and allow the growth to come naturally. |
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The moral hazard of checks notes mothers breastfeeding and attending to their newborn children and husbands asssisting for a few weeks. Yes. What an absolutely upsidedown society we'll have if we allow such a thing to happen. Terrible. Need to ensure that doesn't happen.
And we need to reduce the rate of this happening to ensure checks notes wealthy people continue producing at high rates to profit the even wealthier.
That so many people have such mindsets and continue to wonder why our birthrates are dropping is astounding.
Wake up buddy. Keep drawing these lines. See where they go. I guess we'll both be dead though, so it doesn't matter.