In Defense Of Nudges

Richard Thaler repeats his thesis:

I don’t like most pure paternalism either. But I really feel that the best way to fend off pure paternalism is by utilizing nudges instead of shoves, and by insisting that we keep the nudges as gentle as possible. Can any true libertarian really disagree?

I truly believe that libertarian paternalism offers an approach to public policy that libertarians can embrace and, in so doing, avoid being mischaracterized themselves. Libertarians are not lunatics, though by taking extreme views they open themselves to caricature as in the cartoon that appears in this week’s New Yorker. A man is standing in front of his blazing home holding a bucket of water and turning down the help of the fire department with the explanation that “I am a libertarian.”