The Moral Hazard Argument

A moral hazard argument that was put forward by a virgin school economist, mark pouley, was that when you guarantee the social insurance of er risks, this means that you're actually encouraging irresponsible behaviour. And so in some sense, you need to reinstall reinstate fault. We need to return to a kind of tagt law tradition arm of individual responsibility. There's aa purest argument for that, which is, let's get rid of insurance altogether and go back to tourt and litigation. It's completely in line with the polar tradition. But they're not reflective enough to say that we are writing from the point of view of the polar traditionnd.