Catastrophes Quote by Richard Thaler
“How can government reduce the frequency and the severity of future catastrophes? Companies that have the potential to create significant harm must be required to pay for the costs they inflict, either before or after the fact. Economists agree on this general approach. The problem is in putting such a policy into effect.”
About This Quote
Source Speech: Economic Policy Discussion, 2015
Governments should make harmful companies pay for damage, but implementing such policies is challenging.
In simple terms: Make poll pay for harm, but it's hard to enforce.
Key Takeaway
Enforce liability for damage.
Themes
policy
economics
responsibility
Mood
concerned
analytical
Type
policy
economic
When to use this quote
- legislation drafting
- corporate risk assessment
- public budgeting
Key Concepts
externalities
regulation
incentives
Questions to Reflect On
- How can we design effective enforcement mechanisms?
- What incentives ensure compliance?
A Different Perspective
Political opposition and legal hurdles can stall enforcement.
