"So inscrutable is the arrangement between causes and consequences in this world that a two penny duty on tea unjustly imposed in a sequestrated part of it,changes the conditions of all of its inhabitants."
This is what Thomas Jefferson said about the Boston Tea Party.If one may remenber this incident catapulted the nation into full scaled American revolution.
Economics at root is supposed to the study of incentives .World till now hasnt encountered problem which cannotbe solved by giving proper incentive.However great the consequence may be,the intial problem would have been solved.
Social,Moral and Economic are the types of incentives.And often a new incentive acts as a trade off between two of these.And the trick is to balance the extemes.Another tricky proposition is that once a incentive is made the earlier incentive ceases to exist and would not automatically come bck once the new incentive is removed.
Humans by nature are cheaters.Because cheating usually gives a definite adv over those who dont.Thts a defnite incentive to cheat.Uncless there are greater incentive not to cheat we will go on cheating..
We need to raise the stakes.And hence the jail terms ,the social ostracization,the religious dikats.
And even as we ask why the crime rates are not going down,we need to realise that they are a lot lesser thatn the the earlier centuries.
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