Nudge: Improving Decisions About Health, Wealth, and Happiness

by Richard H. Thaler

Paperback, 2009

Status

Available

Call number

330.019 T327

Collection

Publication

Penguin Books (2009), Edition: Revised & Expanded, 312 pages

Description

Psychology. Nonfiction. HTML: Every day, we make decisions on topics ranging from personal investments to schools for our children to the meals we eat to the causes we champion. Unfortunately, we often choose poorly. The reason, the authors explain, is that, being human, we all are susceptible to various biases that can lead us to blunder. Our mistakes make us poorer and less healthy; we often make bad decisions involving education, personal finance, health care, mortgages and credit cards, the family, and even the planet itself. Thaler and Sunstein invite us to enter an alternative world, one that takes our humanness as a given. They show that by knowing how people think, we can design choice environments that make it easier for people to choose what is best for themselves, their families, and their society. Using colorful examples from the most important aspects of life, Thaler and Sunstein demonstrate how thoughtful "choice architecture" can be established to nudge us in beneficial directions without restricting freedom of choice. Nudge offers a unique new take �?? from neither the left nor the right �?? on many hot-button issues, for individuals and governments alike. This is one of the most engaging and provocative books to come along in many years… (more)

Media reviews

But regardless of whether Thaler and Sunstein’s ideas are ideologically neutral, most of them are the essence of common sense.
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Although Nudge has no positive redeeming qualities, there is some value in what it reveals about contemporary politics. Thaler and Sunstein have unwittingly exposed an increasingly popular approach to whittling away freedom in America.

User reviews

LibraryThing member LynnB
Nudges are small, relatively non-intrusive ways that decision makers in government or industry can encourage people to make choices that are better for their health, wealth, or other forms of well-being. The authors explain the concept of "choice architecture" and how it can be used in designing
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public policy.

This book is well written, easy to read and explores issues of personal freedom, paternalism, and the role of the state.
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LibraryThing member EricaSJ
If you've never read in this field before and want a quick overview, it will be interesting reading. However, many of the experiments and anecdotes sounded awfully familiar to me. If you've already read books such as The Paradox of Choice, Why Smart People Make Big Money Mistakes, The Winner's
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Curse and Predictably Irrational, you could probably skip this one.

I was also disappointed that there wasn't more in the book about organizing things to yourself positive nudges. I don't want to depend on an employer or government to point me in the right direction--by the time they start incorporating these ideas, years may have gone by!
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LibraryThing member jxn
There exists a potpourri of pop psychology/economics books that tell us we typically aren't aware or reflective about the decisions we make, the options and data before us, and the consequences of our actions (especially in the long term). Nudge is one of them, but probably not the most innovative
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nor the most exhaustively exploratory. Nudge is helpful and often somewhat insightful, but it is partially uncritical--not of its presumptions, as it tries to defend it's philosophical position well and succeeds at least somewhat--but of the potentially adverse fallout of some of the seemingly simple policy modifications it endorses. It furthermore fails to recognize that it's so-called "libertarian paternalist" position rejects completely the contemporary conservative/libertarian presumption that corporations deserve similar liberties as afforded individuals (or, at least, individuals should be free to exercise their rights through their corporate and commercial activities with few restrictions).

Nudge is pretty good and rather interesting, though. I suspect that were it not for existing popular books offering a seemingly economic view reflecting on our awareness of our non-conscious decisions, I would probably have given the book a more favorable rating. If considering Nudge, I would suggest considering an alternative such as the following. If you are interested primarily in psychology and human error, Dan Ariely's "Predictably Irrational" is pretty good, though imperfect. If you are concerned more about the economics aspect and less about the psychology, consider the Freakonomics series. If you are interested in moral issues related to our decision-making awareness, try Kwame Anthony Appiah's "Experiments in Ethics". That said, Nudge is still worth reading--but the first chapter and the last chapter in this case will probably be enough to get all the good ideas out of this book without redundancy, unless you think you might benefit from Thaler's private financial advice sprinkled throughout the book (hint: you would probably learn something).
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LibraryThing member PickledOnion42
In Nudge, Thaler and Sunstein argue that the average member of society would benefit from the application of libertarian paternalism – the manipulation of 'choice architecture' (the way in which choices are presented) in order to nonintrusively guide people towards making better decisions, whilst
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leaving them free to choose otherwise. From personal debt to organ donation, they show how their philosophy can offer a solution to many of society's problems.

Although this work necessarily uses some specialist language, all such jargon is explained in a coherent manner as it is introduced, enabling the general message to be followed with ease. As for the authors, they obviously have a good working relationship (as evidenced by the seamlessness of the work), but moreover their friendship can easily be glimpsed behind the words lending the book itself a generally friendly feel. They appear to honestly care about their argument, however although mostly well contained, the authors' enthusiasm does at times get the better of them – just as an over-zealous decorator may finish the walls and start painting doors, ornaments, and family pets, I felt at times as though the authors were applying their solution where it didn't really belong: the relevancy of the chapter on marriage, for example, seemed somewhat contrived (it's a good chapter which could easily be expanded into a separate work in its own right, I just don't think it really belongs in this book). This is my one criticism. Their solution is a good one, but it is not a panacea to be applied universally, as the authors themselves acknowledge.

A book that genuinely alters one's beliefs is a rare thing indeed, yet this is precisely what I have found in this book. It hasn't changed my 'worldview' or anything so grand as that (I don't wish to exaggerate here) but it has certainly changed the way I think about the future direction of society (in fact, that does sound quite grand after all doesn't it!). Previously an adherent to the 'Just Maximize Choices' solution to social problems, after reading Nudge I now consider myself something of a libertarian paternalist.
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LibraryThing member Opinionated
Choice architecture is a sound principal and easy to grasp. Once you have grasped it, which will take most intelligent readers a handful of pages at most, the rest of the book seems a little redundant. In fact the authors seem to struggle for examples outside health insurance and pension planning.
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But I would have appreciated some discussion of choice architecture in every day life - getting people to make healthier food choices, to drive less dangerously, to exercise more, etc. Nothing to disagree with here (except the rather silly chapter on marriage), but once you have read chapter one, that's pretty much all there is. I am surprised that it made such an impact really
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LibraryThing member modell3
The book starts off well, but then perseverates on the author's formula for apparently solving world hunger (RECAP). This model is never fully explained and seems naive at the outset.
LibraryThing member amimariscal
This book starts out wonderful, full of insight for marketing and decision architects, but quickly digresses when it starts to address social problems with it's brilliant insight, but does so in a limited and boring manner.
LibraryThing member IanMPindar
This book took me 5 years to read! Yes, five years!

When I was working a mad full time job and there was no one in the house to receive deliveries during the week, it always befell me to go the Post Office to collect on a Saturday morning. The queue always stretched out of the office into the
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street, one time it had about 40 people in it – I gave in that day. The average number of the people in the line was about 8. I put Nudge in the car and read it while I waiting patiently in line. Then there was a lull, and then the orthodontic visits started with my daughter. It was at the dentists I actually finished the book (not at tooth-hurty!).

The book is very interesting and it is all about the architecture of choice, it’s actually about common sense and not having enough time to make decisions. OK, it’s about being educated as well. I found some parts a little repetitive and academic, once you have the basic premise about ‘opting in’ or ‘opting out’, it does not need to go on too much about it with detailed examples, you can tell it is written by academics. Imagine if I’d read it over a few weeks? For this reason I found the first half of the book much more interesting than the latter half.
I suggest if you are reading it, you read it in no less than three years. The big question is: What book to put in the car now? Or have smart phones made books in cars redundant? What if I can’t get a reception? – I’m opting in.

The Writing IMP
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LibraryThing member chaosmogony
Drawing on current thinking in psychology and behavioral economics, trends which have helped us to refine our understanding of human behavior and decision-making, Sunstein and Thaler lay out their conception of choice architectures. The way that information is presented matters. As human beings, we
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are not the fabled homo economicus, the autonomous, self-owning, rationally-deciding agents that have dominated thinking on these matters in the United States.

Choice architecture means that there is no such thing as a neutral default, and thus the responsibility for providing thoughtful, and perhaps (as becomes important) helpful, layouts is placed on those who do the designing. This matters in a bewildering range of domains, although the authors (rightly in my thinking) point out that cases where feedback is not readily forthcoming and in which the long-term consequences truly matter (such as dietary and financial decisions as well as matters affecting health and the environment) are demanding of the most attention.

Sunstein and Thaler espouse (what they argue to be) a benevolent form of interventionism which they label 'libertarian paternalism'. As self-proclaimed libertarians, they are nervous about heavy-handed interference in the form of bans and prohibitions, giving their preference to the soft-gloved approach of incentives and the eponymous 'nudges' made possible by choice architectures. This well-intended 'hands-off' intervention without interfering means to push people into making 'better' choices. However, 'better' remains, as ever, ill-defined and subject to arbitrary definition. Additionally there is a strong case to be made that intervention is intervention no matter how you label it; these methods are less overt, to be sure, but this same property could serve to better conceal their use in the toolkit of unsavory interests.

The remainder of the book runs through various proposals for using 'nudges' in public policy matters, and they do offer a range of ideas worth consideration (although some are questionable, connecting back to a recurrent theme that I will clarify shortly).

As an 'idea book' I would highly recommend giving Nudge a look. Sunstein and Thaler make a persuasive case for the nudge concept, right down to the science and their own political leanings. I have my own reservations about their argument and their perspective in making it (which seems to be largely accepting of, if not quite espousing, a status quo of which I find myself increasingly cynical), but I need not bog down the review with those issues.

As a read, I found the later chapters repetitive and I skimmed healthy chunks of them. Once the argument for the nudge is made in the first part of the book, the examples, while interesting, didn't seem quite as captivating (and this may be in part due to my own above-mentioned reservations rather than any true flaw, so this, too, should not be considered off-putting).

My concerns aside, the ideas here are largely sound, interesting, and, in fairness, I even agree with their broadest scope. The soft approach of 'nudging' seems preferable to more overt forms of intervention, and it's hard to disagree that this is an underused method of moving people toward better life-choices (we just have to sit down for a long think about what justifies our conceptions of 'better', although this is no new problem).
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LibraryThing member avogl
There were some interesting points on how to set up choices to nudge people in the direction you want. Most people chose the default so make this option good. Use peer pressure, people listen to and do what their peers do, thus we could influence our students by informing them about what other
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students are doing. Use priming; when we ask students questions in a survey ask what they intend to do and it might influence them to follow through and do it. Keep in mind that giving people 46 choices and telling them to ask for help is likely to be about as good as no help at all.
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LibraryThing member suzemo
This book is not what I thought it would be.

I somehow thought it would be about how to improve decision *making* for, say, yourself (which would impact things like Health, Wealth, and Happiness), but it was about choice architecture and how to frame choices to make people choose what you think they
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should choose.

Which might have been interesting if that's what the book covered. There was a little bit about "choice architecture" in the beginning, but nothing that extended further than common sense. They then left discussion of choice architecture to focus on what the authors' thought should be the solution to problems like losing weight, medicare/health plans, marriage equality (same sex marriage) and retirement accounts (to focus on a few).

And then there was lots of discussion about how they are libertarian paternalists, which really stuck in my craw. It basically came down to: how they would try to push ("nudge") people into choosing what is "best." Best being completely subjective at the discretion of the authors, of course. It's easy to just swallow that their brand of pushing is good using innocuous ideas like saving for retirement "best" (which can easily be decided by "most amount of money gained by retirement"), but the idea that a couple of smug guys deciding what is "best" in a variety of any social issues just annoyed the crap out of me.
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LibraryThing member NatCat13
The book starts off very interesting but gets boring around the middle, when it gets too technical and repetitive.
LibraryThing member timtom
In this well-structured book, Thaler and Sunstein explore the various ways to present choices to users in a way that will encourage them to wisely use their right to choose. "Choice architecture" seems a very logical concept, yet as the authors are quick to point out, life's complex choices (such
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as retirement plans) are usually presented in a very discouraging way and more often than not with no sensible "default option". The base idea of the book is interesting, and well illustrated, but in the end it remains a whole book centered around one single idea. And while the proposals to reform medical insurance or retirement plans are very sensible (although very US-centric), the authors also embark in half-baked and exotic ideas, such as the privatization of marriage, that tend to miss the point.
People in charge of social security systems should definitely read this book. Other may skim through it to pick up the main idea, which is indeed brillant, but they won't need to read all 300 pages to do so :)
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LibraryThing member nocto
Enjoyed this when I read it - have forgotten pretty much everything about it apart from the basic idea that getting people to do the things you want by slightly encouraging that behaviour in some way, probably by making it the easiest option, is a good idea.
LibraryThing member IanMPindar
This book took me 5 years to read! Yes, five years!

When I was working a mad full time job and there was no one in the house to receive deliveries during the week, it always befell me to go the Post Office to collect on a Saturday morning. The queue always stretched out of the office into the
Show More
street, one time it had about 40 people in it – I gave in that day. The average number of the people in the line was about 8. I put Nudge in the car and read it while I waiting patiently in line. Then there was a lull, and then the orthodontic visits started with my daughter. It was at the dentists I actually finished the book (not at tooth-hurty!).

The book is very interesting and it is all about the architecture of choice, it’s actually about common sense and not having enough time to make decisions. OK, it’s about being educated as well. I found some parts a little repetitive and academic, once you have the basic premise about ‘opting in’ or ‘opting out’, it does not need to go on too much about it with detailed examples, you can tell it is written by academics. Imagine if I’d read it over a few weeks? For this reason I found the first half of the book much more interesting than the latter half.
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LibraryThing member Cecilturtle
There are many factors that influence our decisions without even our realizing it. In this book, Thaler and Sunstein analyze the decision-making process, the human tendencies that impede the process, the factors that influence them and ways to help people make better decisions. It's a fairly simple
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concept that is well demonstrated through concrete examples and applications. The injection of humour makes this rather dry material quite palatable.

For me, the theory was much more interesting than the practice and it was easy for me to relate to the various situations presented. I do not agree with their idea of privatizing marriage - their paradigms are limited to their construction, although I'm sure that presented with different arguments, the theory would uphold. Very American-centric, but interesting nonetheless.
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LibraryThing member wvlibrarydude
This was a better summary of research into behavioral economics, psychology and decision making. With that section done, it moved into the realm of architecture in how to use that knowledge to gently "nudge" people into making decisions that are good and to avoid decisions that would be harmful. I
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like the bend on the "libertarian paternalism" that they promote. Basic idea is to be paternal in the architecture, but that the motivations should be gentle nudges and not forceful, especially with the ability for people to still make decisions that can harm them. Good work and analysis, but I was still left a little distant on some of the topics discussed.
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LibraryThing member rivkat
Sadly, Thaler and Sunstein use most of the same key research and examples as Lehrer, so doubling up was not wise. They are more policy-oriented than Lehrer: they want to change various defaults so that people do smarter things based, essentially, on the inertia of the status quo, along with a dose
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of changing the salience of various attributes of our possible choices. So they want to get more people saving for retirement by making enrollment in retirement plans the default, and by allowing people to choose now to save just a little bit but increase their contributions over time—it’s a lot easier to say “I’ll save money later” than to say “I’ll save money today,” but by the time later rolls around, inertia makes it less likely that you’ll change your mind, and so you’ll start saving more. Wonky popularizing stuff: if you didn’t know the behavioral economics background, this would be a chewy introduction.
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LibraryThing member kristenn
This is just "improving decisions about..." on a macro level. You won't get any self-help from it, just potential policy ideas to lobby for. I went into the book with the impression that their political views were very similar to my own and that view didn't change. Some really interesting ideas to
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chew on and maybe work into conversations. And refreshingly low on the ideology and partisanship. No villains screamed about. We need more stuff this mellow. Some chapters seem more thought-out than others. The marriage discussion was practically incoherent, although I did pick up on a rather disturbing endorsement of alimony. And absent-minded ivory tower stereotypes aside, it's hard to believe they genuinely can't imagine what the argument would be against paying for organ donations. The idea of waiving liability rights in exchange for reduced healthcare costs was the most interesting section. The one on public school choice skirted too many of the standard arguments to feel very useful.
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LibraryThing member ericadrayton
I couldn't continue to subject myself to a man referring to a 'normal society' as Homer Simpsons. When he started out by explaining to the reader (me) what a footnote is he lost my respect. I can't take seriously a person who can't treat his audience as his equal. I see his point, and it's true, we
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are nudged every day from the big to the small. I will finish this book, if only so I can know what's coming and prepare accordingly, but don't expect a rating higher than 1 star from me.
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LibraryThing member BookConcierge
Digital audiobook read by Lloyd James.

Thaler and Sunstein are professors specializing in Behavioral Economics. This work explores the ways in which decision options are presented to achieve the result the designer hopes for … i.e. the nudges.

I found much of this very interesting and kept
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thinking of incidents in recent years that pointed out how such nudges were beneficial. Certainly, my parents nudged my saving habits, even though they never studied economics. But not all nudges are beneficial. The book also made me aware of the nudges that I need to be mindful of. (Extended warranties? Uh, no.)

I had to laugh when reading the updated section at the end, and they reported that the single example that got the most attention was the fly in the urinals at Schiphol airport! I’ve been thinking hard about how I might replicate their results to nudge my husband to put the dirty dishes IN the dishwasher vs just on the counter right above the dishwasher.

The digital audiobook I listened to most was read by Lloyd James. He does a fine job, but much of the material is rather dry, and of course, the listener misses the graphs and illustrations. My local library’s CD version was narrated by Sean Pratt. A fellow book club member listened to a version narrated by Richard Thaler.
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LibraryThing member nbmars
As you struggle with New Year's resolutions, you might want to consider consulting this book for guidance.

At the time this book was published, both authors were professors at the University of Chicago. Both Thaler and Sunstein are firm believers in the efficacy of market forces, but they recognize
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that human beings often make choices that are bad for themselves (for a variety of reasons) in the long run. Both authors would like to limit government coercion in peoples’ lives, but they recognize that by providing good incentives, it can channel behavior in directions that will increase overall happiness and economic efficiency.

In the book, they articulate a philosophy they characterize as libertarian paternalism. It is libertarian in that it preserves individual free choice to the maximum extent advisable: as they say, “people should be free to do what they like-and to opt out of undesirable arrangements if they want to do so.” On the other hand, it is paternal in that it directs (but does not coerce) behavior in situations where many people have been known to make choices that do not make their lives “longer, healthier, and better.” Hence the term and the title, Nudge (as opposed to coerce or compel).

The authors develop concepts that were originally articulated over the years by Daniel Kahneman, Amos Tversky, and others concerning ways in which humans make poor choices. A more thorough analysis of these same concepts can be found in Kahneman’s 2011 book, Thinking, Fast and Slow. Thaler and Sunstein show that wise, non-coercive policies can be devised taking these human failings into consideration.

The result is a fascinating, lively account of how governments could help make life longer, healthier, and better through “choice architecture,” their term for a method of influencing decisions by how choices are presented. A simple example of choice architecture through a “nudge” is placing healthy foods in a school cafeteria at eye level, while putting less healthy junk food in harder to reach places. Individuals are not prevented from eating whatever they want, but arranging food choices in that way tends to decrease consumption of junk food and increase consumption of healthier foods. (More mundanely, they cite the technique of "hiding the cashew nuts.") Yet another example they adduce is that of “Clocky,” an alarm clock that runs away and hides if you don’t get out of bed on time.

Evaluation: "The Economist" rated Nudge the “Best Book of the Year.” Not all the critics have been so kind. I found that I raced through the first half, often laughing out loud, but the last half (consisting of numerous policy recommendations) sometimes became a bit heavy going. Nonetheless, I highly recommend this book, especially for legislators and other policy makers.

(JAB)
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LibraryThing member Parthurbook
A central premise that can change the way you see - and think about - the world. The first section is insightful and well-written. Equally, the second section (about 'Money'). BUT the second half of the book looses its grip because it's very US-centric. So the loss of stars 4 and 5 is due to the
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publishers, not the writers, who didn't put enough investment into non-US case studies. Indeed, I'm not sure what the cover statement 'New International Edition' really means.
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LibraryThing member riida
my first DNF for the year...

i'm disappointed with myself...for a long time i was looking forward to reading this book, only to get so bogged down i had to finally give up a few pages short of the half-way point.

the first 5 chapters were really good. scholarly, but entertaining. then followed
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chapters of case studies that leaned more on the sides of economics and governance rather done on psychology and personal development...and i just struggled. i'm really interested in this topic, too...so maybe i'm just not really in the mood.

plus, the book was very targeted to an american audience. not a bad thing since the lessons can be generalized. but when i have to do that mental adjustment every chapter...when my focus is already running away from me...

maybe i'll pick it up again sometime
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LibraryThing member the.ken.petersen
Wow! This book starts off really interestingly; it details the way our minds work and the techniques for getting people to listen to your message. All worth reading and I took several pages of notes to reconsider at my leisure.

Then, we hit part two: a party political broadcast on behalf of the
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neoliberal parties of the world. Oh well, I'll skip that bit and get on to the climate section. As a green, this will recapture my interest...

The text is that money talks. Raise a few taxes, but not too much. The poor will be scared off from fossil fuel use and the rich? Why, they'll pay for ignoring the regulations and the poor are so stupid that they'll take a little extra money and suffer in silence.

Thanks boys, don't call us, we'll call you - all sorts of names!
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Language

Original language

English

Original publication date

2008

Physical description

312 p.; 5.48 inches

ISBN

014311526X / 9780143115267
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