Or with smart people who profit at the state's expense when it rescues fools from their mistakes. If it's known that folly has no adverse results, people will take more risks.
While this is true, it may also be the case that humans in the default state don't take enough risks. Indeed, an inventor or entrepreneur bears all the costs of bankruptcy but captures only some of the benefits of a new business. By classical economic logic, then, risk-taking is a public good, and undersupplied. Which said, admittedly, not all risk-taking is created equal.
Another month has passed and here is a new rationality quotes thread. The usual rules are:
And one new rule: