Thursday, September 24, 2009
Non-Sports posts should be sparse on this site and I plan to follow that rule. However, today I read one of the more articulate explanations I've heard on incentives and investment. I'm generally not a fan huge bailouts of the auto industry or investment firms that take bad risks. What does this really do for us? Responsibility is simply shifted away from those firms and no one learns their lesson. While the bank failings are bad, bailing them out doesn't make us better off in the future, and that's what we should be focusing on now. That is the general idea behind Harvard Professor Jeffrey Miron's Testimony before the House Financial Services Committee. While it's not sports, I think it's an important lesson that can be broadened to numerous places not only in society and democracy, but also the incentives in sports and sports business. Dr. Miron also has a great blog called Libertarianism, from A to Z.