Libertarian and Non-Libertarian Policy Checklists

Reposted from my blog.

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Libertarian (private sector, free-market) and non-libertarian (public sector, government intervention/‌regulation/‌oversight) policy proposals tend to have different types of failure modes. Here are some things to consider before implementing a proposal of each type. Additions and other feedback are as always more than welcome.

Checklist when considering a government-intervention approach:

• Is the free market insufficient?
• Is the intervention sufficient?
• Is the inherent moral cost of infringing on individual liberty justified?
• Is the economic cost justified?
• What is the opportunity cost of the money being spent?
• What market distortions (inefficiencies) will this create?
• How will this be misused?
• What moral hazards does this present for ordinary people?
• What opportunities are there for intentional abuse by members of the public?
• What moral hazards does this present for the officials implementing and enforcing it?
• What opportunities are there for intentional abuse by officials?
• What precedents does this set for future legislation?
• What opportunities does this present for regulatory capture?
• How can ordinary people circumvent these regulations/interventions?
• How can wealthy individuals and corporations circumvent these regulations/interventions?
• How harmful is this if it turns out you're the baddies?

Checklist when considering a free-market approach:

• What negative externalities exist?
• What moral hazards exist?
• Does this enable abusive monopolization (as in company towns)?
• Does this enable/encourage artificially creating inelastic demand (as in hard drugs)?
• What related regulations exist that might tend to distort the proposed market?
• Is this an isolated demand for free enterprise that disproportionately benefits companies receiving monopolies, subsidies, or other advantages from the government?

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