Over the weekend, Cass Sunstein spoke with Open Source’s Christopher Lydon. In the 30-minute conversation, Sunstein describes the arc of behavioral psychology as it has traveled to the fields of law, economics, and public policy. One tidbit: A behavioral explanation for why employers lay people off during recessions rather than cut their wages. People can’t stand wage cuts, just like they can’t stand higher prices. Cutting wages would induce greater employee shirking. Employers recognize this and trim the workforce instead. In the final half of the interview, Sunstein comments extensively on Barack Obama and the 2008 campaign.
Tags: Barack Obama