This above title of this post was the headline in today’s online edition of the Guardian. What a terrible idea! This proposal is a perfect example of what economists and others call a moral hazard. Moral hazards are basically situations in which one party takes on risks that another would bear the cost should the outcome require it. The term can also be used to describe an action that purports to solve some problem, but actually fails to deal with the real causes and diverts attention from an effective course. While the term is relatively new, the concept can be… Read More
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