A New Approach To Public Policy

Libertarian Paternalism

A New Approach to Public Policy

By Cass R. Sunstein

Many economists are libertarians, and they consider the term "paternalistic" to be a term of opprobrium. But what if there were a way to be both a libertarian and a paternalist? This is the question that Cass R. Sunstein explores in his new book, Libertarian Paternalism.

Sunstein argues that it is both possible and legitimate for private and public institutions to affect behavior while also respecting freedom of choice. He calls this approach "libertarian paternalism." Libertarian paternalism is based on the idea that people are often not very good at making decisions for themselves, and that they can benefit from some help.

Sunstein gives several examples of libertarian paternalist policies. One example is the default rule for organ donation. In most countries, people are not required to donate their organs after they die. However, in some countries, people are automatically registered as organ donors unless they opt out. This default rule has been shown to increase the number of organ donations without coercing people into donating their organs.

Another example of libertarian paternalism is the use of nudges. Nudges are small changes to the environment that can encourage people to make better decisions. For example, putting healthy food at eye level in a cafeteria can encourage people to eat healthier. Nudges are libertarian because they do not restrict people's freedom of choice. They simply make it easier for people to make good decisions.

Libertarian paternalism is a new approach to public policy that has the potential to improve people's lives without sacrificing their freedom. It is an approach that is based on the idea that people are not always very good at making decisions for themselves, and that they can benefit from some help.