If you can't have ex-post remedies, then you have to have ex-ante prevention or an enormous moral hazard opens up.I remember Moral Hazards, I thought they disappeared during the bailouts though.
The people I know who favor "tort reform" don't seem to understand that the alternative to civil law making illegal and negligent acts unprofitable is more regulation rather than less. If you can't have ex-post remedies, then you have to have ex-ante prevention or an enormous moral hazard opens up.I think what they want is "victim pays". After all, a broken leg is god's punishment, and since you deserved it, it's unfair to make other people pay for your cast. And time off from work is just welfare
True, but this is something of a tautology. I'm pro-regulation, but have you ever spent an afternoon browsing the Federal Register? Bureaucracy can be just as big a problem as an absence of regulation. I'm interested in immigration law, and I could supply you with abundant examples of administrators doing a terrible job, not least because they're saddled with terrible regulation.Immigration is a huge mess, IMO, because the people affected by it can't vote.
Mother Theresa attempted to build a homeless shelter in a fire-gutted two-story building in the Bronx in the late 1980s, but was ultimately stymied by the city's requirement that any new housing in the city above one story in height include an elevator, a regulation that would have added over $100,000 to the cost of the project. No one within the city was empowered to sign off on a circumvention of this rule, so Mother Theresa ultimately abandoned her attempts to open a shelter here entirely.Let's see, can you think of why the elevator is required? Likely, it's to allow handicapt people access. Hopefully handicapt people will be on Social Security and won't need to live in a homeless shelter, but if you carve out an exception for homeless shelters, then you're doing the opposite of what you want -- you're actually making the law more complex
There absolutely need to be building regulations, and relatively robust ones at that, but they need to be open-ended enough that, under the proper circumstances, agency actors are empowered to allow deviations from the norm where that deviation is justified, either because the rules didn't anticipate a particular situation, or because the deviation is in keeping with our broader notions of the community purpose the rules were designed to serve. (Equally important, this grant of authority must also include a commensurate imposition of responsibility for the negative consequences of these types of decisions).I'm from Chicago. Let's just say I'm a little concerned about what "proper circumstances" might be. Frankly, "proper circumstances" is a stretchy concept that results in one standard for one group, and another standard for another. And having a pile of money usually is a good helper in getting "proper circumstances" approved.
"If you run a business its hard to do much of anything without calling your general counsel. Indeed there is this phenomenon now where the general counsels are becoming the CEOs. Its a little bit like Invasion of the Bodysnatchers. You need a lawyer to run the business because there is so much law."This is the first thing out of his mouth. And since the vast majority of regulations apply to businesses, I find his attempt to steer the conversation to discussions of more noble victims to be disingenuous. And although he turns to discussing the noble teachers, it isn't long until we get back to the meat--the struggles of the highly-paid pediatrician and his inability to ask certain questions at an interview for Covington and Burling. His other examples in the talk are the health care industry, and manufacturers warning labels. This is industry and business he is discussing, which is where most of these regulations are.
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posted by Ironmouth at 1:58 PM on August 22, 2011 [6 favorites]