Why I Defaulted on My Student Loans

This is a 20-page Rush Limbaugh rant about "personal responsibility." It doesn't work. Change the incentives, and the behavior will follow.

 

In the vast, vast majority of instances "doing the right thing" is in people's economic interest. Societal norms lead to there being very costly penalties paid for those who exhibit, as the economists put, "opportunism with guile." (For example, I suspect some of this guy's byline isn't going to trade at quite such a premium in the future). Even if you take societal norms off the table, behaving thusly can have serious bottom-line consequences.

Years ago, back when I actually ran a business, I invoiced my customers under "2%-10, net-30" terms (I'd give you a 2% discount if you paid within 10 days, otherwise the whole thing was due in 30 days). I had one customer who routinely wrote the check within 10 days, took the 2% discount, but then wouldn't mail the check for several weeks beyond 30 days. To this customer, behaving thusly was in its economic self-interest. But the sellers in this market weren't stupid (at least I wasn't). I routinely inflated my quotes for things this customer wanted; if, for an ordinary customer, a given order would be quoted at $1,000, I'd quote, say, $1,200 for this customer. Bottom line is that this customer paid, and paid dearly, for its short-sightedness.

 

What should they be?

 

Have you listened to a single Rush Limbaugh radio show? Ever?

 

I don't know. I don't have any data readily available about what might work.

 

Do you really want me to go find posts here and otherwise in which people argue that the solution for any issue is that people "take more personal responsibility"?

Unemployment?

"Personal responsibility!"

Poverty?

"Personal responsibility!"

Ad nauseum.

OK. Keep singing that song.

 

I can just imagine the uproar that would result from any attempt to make the penalties tougher.

 

That's fine, but I don't know why you call it a "Rush Limbaugh rant" if you've never listened to him. What is a "Rush Limbaugh rant"?

It means as much as me calling something a "Rachel Maddow rant".

 

That would not hurt my feelings one bit. I watch one show on MSNBC, and it's hosted by a Republican.

 

Why I Apologized to Sandra Fluke - The Rush Limbaugh Show

I am huge on personal responsibility and accountability, people providing for themselves when they're totally able to. The government has no business doing any of this, getting in people's bedrooms and mandating that other citizens pay for other citizens' social activities and so forth.

 

Google is a great resource.

I just find it an odd reference, since you don't listen to him.