polscifeb5 - Exam Thursday Q & A tues night chem.140...

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Exam Thursday Federal gov’t has been able to help states to adopt regulations by giving them incentive to change what they do – lower speed limits, drinking age, highway funds Issue involved with “carrots” is that how is it that you get someone to behave in a moral way – i.e. car insurance – instead of spending certain amount each month for insurance – moral hazard is that they have no way to ensure you won’t act responsibly Deductibles cause people to act responsibly – they create a consequence If money is meant to improve urban housing, is it being used appropriately In 1996 worked together to revamp how social security (state and federal) -removed restrictions and created block-grant money, require people to take job training programs instead of telling states they have to Clean air act – trying to clean up pollution; states have to carry out regulation and sanctions on those who don’t conform
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polscifeb5 - Exam Thursday Q & A tues night chem.140...

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