2min chapter

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How to Hate Taxes a Little Bit Less (Ep. 400 Replay)

Freakonomics Radio

CHAPTER

The Dangers of Incentives in the US

Japan has taken intrinsic motivation and translated it into something that's extrinsic now. This problem is called motivational crowding out. A municipality that rewarded donors with a gift was six times more likely to get a donation in towns that didn't. What if the US started offering taxpayers the opportunity to direct a portion of their money to particular departments or agencies? Would we start to see what the Japanese saw, marketing campaigns and competition to solicit the most donations? And do we really want government agencies campaigning for our money?

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