http://www.tvhe.co.nz/wp-content/uploads/logo-for-enfold-photoshop.png 0 0 The Hand http://www.tvhe.co.nz/wp-content/uploads/logo-for-enfold-photoshop.png The Hand2010-01-13 12:07:312010-01-13 12:14:23Means testing fines: economic efficiency, or unjust policy.
As recently reported, are increasingly pegging speeding fines to income levels, in an attempt to standardise punishment for such infringements.
The intuition is simple: a $100 fine to a person of wealth in excess of a billion dollars is trivial. Clearly, there is no (or at the least little) incentive to curb one’s behaviour.
However, in examining a recent USD $290,000 (euro203,180.83) speeding ticket slapped on a millionaire Ferrari driver in Switzerland, one cannot help but feel this is somewhat excessive.
Conversely, it would seem that such laws have the potential to induce ridiculously low penalties to those without any assets. Is New Zealand society willing to burdening the rich with the external risks created by the poor?