Cato Podcast Cass Sunstein: What a Nudge
Apr 12, 2013
Walter Olson, a Senior Fellow at the Cato Institute and expert in law and regulatory policy, dives into the fascinating world of libertarian paternalism. He discusses how 'nudges' can help individuals make better choices while preserving their freedom. Olson explores the paradox of choice, revealing surprising effects of calorie labeling on young men’s eating habits. He also critiques regulatory measures intended to promote healthier decisions, highlighting the complexities and potential pitfalls of behavioral interventions.
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Means Vs Means-Based Paternalism
- Walter Olson contrasts ends paternalism with means paternalism that corrects decision errors.
- He says nudges should help people reach chosen goals, not pick goals for them.
Use Defaults To Boost Savings
- Make pension contributions automatic so more employees save without losing freedom.
- Walter Olson says automatic defaults increase participation while preserving choice.
Private Firms Offered Choice Architecture
- Walter Olson notes banks historically offered enforced saving programs that people valued.
- He warns government nudges replicate private roles and expand state power.