New Paternalism Meets Older Wisdom: Looking to Smith and Hume on Rationality, Welfare and Behavioural Economics: Looking to Smith and Hume on Rationality, Welfare and Behavioural Economics

What can today’s behavioural economists learn from the classical liberals of the past? Here, Erik Matson offers critical reflections on what he calls ‘the new paternalism’ – a modern-day approach to policy-making that aims to make individuals better off, when judged by their own standards. He argues that the new paternalist approach to policy is far too prescriptive, relying on inappropriate conceptions of rationality and welfare. And he looks to the works of two giants of economics and phi...