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A Nudge in the Wrong Direction

Friday, July 18, 2008 by Gary Galles

In Nudge, Thaler and Sunstein try to combine libertarianism and paternalism by arguing that a "nudge" from the state can benefit those nudged, while staying consistent with liberty because it does not force anyone to do anything. Nudge's argument is far from airtight. But even more devastating is its reliance on a false premise. The "market failure" examples it promises to improve are actually government failures.

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