Wednesday, September 23, 2009

Via Greg Mankiw's Blog, the WSJ has a great story about how businesses respond to perverse incentives:
The fabric is shredded, the steel parts are broken down, and everything is sent off along with the glass to be recycled.

Why all the fuss and feathers? Blame the "chicken tax."

The seats and windows are but dressing to help Ford navigate the wreckage of a 46-year-old trade spat.
Clearly, more regulation is called for: 1) a steel breaking tax, 2) a fabric shredding tax, and 3) a recycling tax might do the trick. Government meddling can always be mitigated with more government meddling—it demoralizes the whiners!

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