By Menzies A.W.C., Lacoss D.A.
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As controls become more comprehensive and complex, their administrators are less able to base their decisions on relatively objective criteria. Bureaucratic rules become more necessary and decisions based on incomplete information less avoidable. Multiplication of categories entitled to special treatment invites the pleading of special interests. Even morality, another intangible asset, is eroded. e complexity of detailed monitoring and enforcement suggests appealing for voluntary compliance, compliance with the spirit and not just the letter of the regulations.
Even morality, another intangible asset, is eroded. e complexity of detailed monitoring and enforcement suggests appealing for voluntary compliance, compliance with the spirit and not just the letter of the regulations. ) Whether the midcompliance is avowedly voluntary, or whether ease of evasion makes compliance voluntary in eﬀect, such an approach tends to penalize publicspirited citizens who do comply and gives the advantage to others. Exhorting people to act against their own economic interest tends to undercut the signaling and motivating functions of prices.
Money prices and costs convey information about subjective conditions outside the direct ken of particular decisionmakers. At this point the subjectivism of Austrian economists reinforces their awareness of general economic interdependence and their concern with coordination among the plans and actions of diﬀerent people. ey are wary (as many textbook writers seem not to be) of focusing so narrowly on the choices of the individual household and individual ﬁrm as to detract attention from the big picture.
Allotropy of Liquid Benzene by Menzies A.W.C., Lacoss D.A.