Webster’s dictionary is defines Paternalism as the policy or practice on the part of people in positions of authority of restricting the freedom and responsibilities of those subordinate to them in the subordinates’ supposed best interest. As we can assume such characterization leaves a negative association with such acts, as it eliminates individuals right to self-sufficiency also known as autonomy. As discussed there are a variety of types of paternalism. The author’s highlight one, which seems to have the individual’s best interest in mind, libertarian paternalism. The basic idea is that private and public institutions might nudge people in directions that will make their lives go better, without eliminating freedom of choice. The paternalism consists in the nudge, which can wrongly be considered coercion but it is not; and the libertarianism consists in the perseverance on freedom, and on imposing little or no cost on those who seek to go their own way, which is based in autonomy.
One core example of libertarian paternalism provided by Thaler’s and Sunstein, is one by which workers can sign up to devote some of their future wage increases to savings. Another example is the automatic enrollment plan, in which workers are automatically enrolled in a savings plan, but can opt out with no trouble and at no expense if they choose to do so (Thaler, 385). One of the essential arguments is that because default rules and starting points often matter, institutions can’t avoid pushing people, which is the “paternalism” factor. If 0% of take-home pay goes to savings, it isn’t because nature so intended it.
The authors go on to argue that people are not always making choices in their best interest. Thaler and Sunstein show us that making decisions, which provide the best benefits to an individual, is not always the outcome. For example Sunstein and Thaler might agree that anyone who does not see the benefits of saving for retirement is not thinking rationally, and would not be making the best decision for their benefit. If a libertarian paternal decision had been made for the individual in their choices, we can guarantee that it had a positive impact even if it is that not morally acceptable. Libertarian paternalism is similar to asymmetric paternalism, which refers to policies designed to help people who behave irrationally and so are not advancing their own interests, while interfering only minimally with people who behave rationally (Colin Camerer, 1220). Such policies are also asymmetric in the sense that they should be acceptable both to those who believe that people behave rationally and to those who believe that people often behave irrationally.
What libertarian paternalists add is that the opposition between “individual choice” and “institution” is confusing and unhelpful when institution is unavoidably establishing unseen rules that govern outcomes if choices haven’t been specifically made, and that influence people’s choices in any situation. Its is important to note that both private and public institutions can’t possibly avoid a form of paternalism, so long as they establish rules and starting points. The question is how to make those starting points as good as possible, while also preserving free choice. So, restraints on ourselves may not be so much external restraints by others who do not like the way one lives and chooses, but restraints that I choose for myself in a moment of deliberate rationality, aware that another I, far from the best self, may make bad choices if I am not restrained by the laws.
Works Cited
Colin Camerer, Samuel Issacharoff, George Loewenstein, Ted O’Donoghue & Matthew Rabin. 2003. “Regulation for Conservatives: Behavioral Economics and the Case for “Asymmetric Paternalism”. 151 University of Pennsylvania Law Review 101: 1211–1254.Web.
Thaler, Richard H., and Cass R. Sunstein. “BEHAVIORAL ECONOMICS, PUBLIC POLICY, AND PATERNALISM: LIBERTARIAN PATERNALISM.” Arguing about Bioethics. New York: Routeledge, 2012. 386-391. Web.