Keeping up with the Jones’
by Jeanne aka JStor on June 1, 2009
It’s a simple fact: the law just can’t keep up with speed of change. Last week, I read a book review on two books that discuss the problems the music industry is having with copyright infringement (i.e. free music downloading, file sharing, CD burning/copying). This obviously has taken a toll on the music industry. (I still like to buy some CDs since I am a huge fan of CD cover art.)
And obviously, the world of finance is facing it’s own problem.
The Levy Institute recently published a policy note by Professor Martin Shubik on The “Unintended Consequences” Game. It’s interesting to say the least. (You know how when someone asks you what you thought of something and you answer “It’s interesting.”? And it’s always a bad sign? Well, yeah this is probably one of those times …) I’m not quite sure what to make of it. Professor Shubik is partially right. When something bad happens (i.e. financial crisis), the public and the politicians look for a scapegoat and a quick-fix solution ASAP. And that quick-fix will end up having loopholes galore since it was obviously just thrown together. But his solution is really puzzling.
His solution:
Create within the Department of Justice a small operational “war gaming group” for all major new legislation…. A game is designed around a new piece of legislation, and a first prize of, say, $1 million is to be awarded to the competing lawyer or team of lawyers who finds the most egregious loophole. The competition is open to any lawyer, or to any student registered in an accredited law school.
It’s an interesting idea, though. Having a group of people vet a bill so that no loopholes can be created. But there are so many unanswered questions. Is his intention to have the major legislation be scrutinized by the lawyers before it gets passed? Won’t that just add another layer of political legislation that no one wants? And what happens if there are loopholes that the “war gaming group” missed? Will they have to return the money? Would it be cynical and wrong of me to say that most legislation is aided by lobbyists/corporations so that they put the loopholes in there in the first place? And the problem with loopholes and cracks: you may not know there is one until its too late. Sometimes loopholes/crack manifest itself when you poke and prod too much. And with the ever-changing technology, loopholes just form themselves as technology evolves. Either way, it’s a topic that makes you ponder.
–Jeanne akaJStor
Tags: Financial Crisis, policy
