There is a fundamental difference between economists and
lawyers (or legal scholars) when it comes to resolving complex social and
economic problems. Economists believe that human behavior and the functioning
of institutions are based upon incentives. Lawyers and legal types believe that
one can resolve complex problems by passing laws and imposing regulations. The
latter think one can legislate away the problem.
I like to describe the approach by lawyer-types to such
problems as “rain laws.” They are like trying to resolve the problem of
flooding from heavy rainfall by means of a law making it illegal for it to
rain. Or solving droughts by passing a mandate that it must rain. Making global
warming illegal is a pretty close runner-up idea. An example of a rain law in
the area of health care would be to solve shortages, health care inflation, and
inadequate coverage by passing a law making it illegal for people to get sick.
A second example would be Obamacare…..To Read More…..
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