Original source: SimoleonSense.com .
Excerpt (via James Surowiecki @ The New Yorker)
The social psychologist Tom Tyler has shown that acceptance of a law’s legitimacy is the key factor in getting people to obey it. So reforming the system isn’t about writing a host of new rules; it’s about elevating the status of regulation and regulators. More money wouldn’t hurt: as the conservative economists George Stigler and Gary Becker point out, paying regulators competitive salaries (as is done, for instance, in Singapore, which has one of the world’s least corrupt, and most efficient, bureaucracies) would attract talent and reduce the temptations of corruption. It would also send a message about the value of what regulators do. That’s important, because what the political theorists Philip Pettit and Geoffrey Brennan have called “the economy of esteem” is crucial to making public service work. Offering regulators the kind of reputational rewards that, say, soldiers or firefighters get will make it easier for them to develop a similar sense of common purpose.
- Debtor States by James Surowiecki (Think Greece & Cali)
- James Surowiecki: The Age of Political Risk
- Do Investors Ever Learn? James Surowiecki
- James Surowiecki: Pros & Cons of Financial Innovation
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