Reading – Nudge
August 28, 2009 by Chris Schaffer
Filed under Theory & Debate
Not a lot has happened here recently. Part of the reason is that the general state of politics, the economy, the world, and news of it was rather depressing. So, for the most part I simply withdrew from it.
In that time I have done quite a bit of reading which has left me with a plethora of thought and ideas.
Nudge (Thaler & Sunstein) was an interesting commentary on the power of choice architecture and the possible uses thereof in business and politics. Certainly our government and our corporate masters could do a great deal more to encourage us to make better life choices without imposing on us any loss of freedom. The general theory of Libertarian Paternalism they put forward is an interesting one. In many ways Sustainable Democracy has always been about this. How can we make better choices that reinforce democratic principles while creating better systems of management, governance, and social motivation.
The general response I have heard from media about this book has been one that sounds much like “I don’t want no stinkin’ gov’ment official decidin’ how to run my life!” Which is about as far from an accurate opinion as one could render… Which should serve to remind us that the media does little more than entertain and provide an outlet for industry commercials rather than make much of a serious attempt at dispersing information. While the authors do encourage government involvement in ways that might worry some, it mostly advises creating systems where default choices make saving, retiring, getting healthcare, etc. much more simple for those with little to no expertise while still allowing for a full freedom of choice by any who wish to exercise such. The other major agenda they put forward would be to force industries to give customers yearend statements that summarize all costs/fees/spending/and in appropriate cases usage of services so that people are fully informed of true costs and may make better informed decisions for future choices in services acquired.
Yes, the great evil of this book is that it would provide meaningful default choices that are in the best interest of the most people and make the general population better informed consumers. Which really is what industry fears, isn’t it?
An informed consumer causes all sorts of problems when comparisons between costs of services are made apparent. They can suddenly decipher if what they are charged and what they receive have a proper relation.
It might go so far as to create a more sustainable society! While no corporation wants to see society collapse, they generally think in extremely shortsighted terms that relate directly to profit rather than consumer or societal benefit. However, it is the responsibility of government to look toward this long term growth and development of our society. The idea of giving nudges to improve the health and wealth of our nation is an excellent idea. When we can create choices that will, in general, create a much greater likelihood of positive outcomes without resorting to mandates (as both parties so often do) we must listen and jump at the chance. Certainly it seems to put politicians in more parts of our lives, but they already are in all those parts. They regulate and use heavy handed methods to move us in all sorts of directions. Reducing what our legislators do to nudging us in better directions will be far more productive than their shoving us heedlessly in any direction.
Have you read Nudge? Let me know what you thought and give some feedback. Follow-up comments and articles will address valid points from any side of the argument for or against any part of nudge.