Using Practical Wisdom
For most people, there is a kind of collective dissatisfaction in our mind. This kind of dissatisfaction occurs in both the way institution run in our society and the way we use when we do our own work. We are worry about whether social institutions such as banks, schools are doing the right things to have our interest at heart, whether we should trust them or not and whether our choice itself is the right thing.
To respond this sort of dissatisfaction, there are two measures. From the external view, more rules should be made. These rules are made to let people standardize in a limit or scope in order to guarantee them to do the right thing. From the point of view of human being (internal view), clever incentives should be made for people to let them serve our interests out of their own interests or their pure selfishness.
Both rules and incentives have positive effect on dealing this general dissatisfaction: 1, more and more rules are passed to regulate the problems which have already happened in order to make sure that these problems will not happen again .2, right incentives are used to make people do the right things to ensure the security of our interests.
But an important thing is that the negative consequences of rules and incentives do damage the original intention of why we create rules and incentives. (The original intention is to ensure people to know what the right things are and how to do the right things). 1, there is no set of rules that will get us what we need because rules only protect the problems have happened, and sometimes rules restrict people to make a flexible choice when new problems occurred. 2, incentives make a person be addicted to it, which means it creates people only do things for incentives. These two sides of negative effects means relying on rules and incentives demoralize professional activity: 1, demoralize the people who are engaged in the activity 2, demoralize the activity itself.
So, what we need, beyond, or along with,
To respond this sort of dissatisfaction, there are two measures. From the external view, more rules should be made. These rules are made to let people standardize in a limit or scope in order to guarantee them to do the right thing. From the point of view of human being (internal view), clever incentives should be made for people to let them serve our interests out of their own interests or their pure selfishness.
Both rules and incentives have positive effect on dealing this general dissatisfaction: 1, more and more rules are passed to regulate the problems which have already happened in order to make sure that these problems will not happen again .2, right incentives are used to make people do the right things to ensure the security of our interests.
But an important thing is that the negative consequences of rules and incentives do damage the original intention of why we create rules and incentives. (The original intention is to ensure people to know what the right things are and how to do the right things). 1, there is no set of rules that will get us what we need because rules only protect the problems have happened, and sometimes rules restrict people to make a flexible choice when new problems occurred. 2, incentives make a person be addicted to it, which means it creates people only do things for incentives. These two sides of negative effects means relying on rules and incentives demoralize professional activity: 1, demoralize the people who are engaged in the activity 2, demoralize the activity itself.
So, what we need, beyond, or along with,