AMlTAl ETZIONI On Solving Social Problems - Inducements or Coercion ?

The case for using economic incentives to solve social problems has acquired some ideological overtones. Frequently, the incentive approach is characterized as advancing core values of the American society, such as freedom. individual dignity, and economic welfare, while “command and contro1”techniques (C&C) are said to entail oppression, coercion, and waste. Adjectives attached to C&C systems in such writings are typically negative; for example, William 1. Baumol and Edwin S. Mills. in “Incentives for Solving Social Problems” (Challenge, NovembdDecember 1984) refer to them as “clumsy.” In contrast, while many terms have been used to refer to the preferred approach, including “charges,” “effluent fees,” and “prices as a regulatory mechanism,” the most often used term-“incentives”-is the one that has the most favorable connotat ion. Most importantly, incentives are often discussed in an idealized form, as a purely conceptual scheme, with relatively little attention to implementation and other “practical” problems. For instance, Baumol and Mills, along with Edwin G. West (in “The Demise of ‘Free’ Education,” Challenge, JanuaryiFebruary 1985). refer to the merit of using subsidies without discussing the serious problems caused by this economic tool-for instance, in the farm sector of the American as well as many other economies. When C&C systems are depicted, they are often not idealized ones but implemented ones. A hypothetical incentive scheme is compared to excessive and inane regulations introduced by OSHA. for example, rather than to a hypothetical, idealized system of regulation, one in which the administering agency is well designed and effectively run. There are deep reasons to expect that implemented systems, which must satisfy multiple and partially incompatible needs, will compare unfavor-