David Brooks in the New York Times: “We’re entering the age of what’s been called “libertarian paternalism.” Government doesn’t tell you what to do, but it gently biases the context so that you find it easier to do things you think are in your own self-interest.
Government could design forms where the default option is to donate organs or save more for retirement. Individuals would have to actively opt out to avoid doing these things. Government could tell air-conditioner makers to build in a little red light to announce when the filter needs changing. That would make homes more energy efficient, since people are too lazy to change the filters promptly otherwise. Government could crack down on companies that exploit common cognitive errors to induce you to pay more for your mortgage, bank account, credit card or car warranty. Or, most notoriously, government could make it harder for you to buy big, sugary sodas.
But this raises a philosophic question. Do we want government stepping in to protect us from our own mistakes? Many people argue no…
I’d call it social paternalism. Most of us behave somewhat decently because we are surrounded by social norms and judgments that make it simpler for us to be good. To some gentle extent, government policy should embody those norms, a preference for saving over consumption, a preference for fitness over obesity, a preference for seat belts and motorcycle helmets even though some people think it’s cooler not to wear them. In some cases, there could be opt-out provisions.
These days, we have more to fear from a tattered social fabric than from a suffocatingly tight one. Some modest paternalism might be just what we need.”