But I can think of one case where fines create a perverse incentive: really small towns run speed traps that fund their law enforcement. I think most cops have a non trivial amount of their budget based on fines. It’s debatable if this is bad. I feel like it’s morally wrong to set a speed limit to something no one follows so anyone can be cited for breaking the law at any time, but at least (most) judges seem to acknowledge that something like “1 mph over” is a BS ticket.

I’ve seen some knee jerk problems from other regulatory attempts like having healthcare required for full time workers so companies cut everyone’s hours to 39 a week. But to me this isn’t a sign that the regulations are the problem. To me it speaks to how companies will do anything they can that they can get away with and it’s a sign that the regulatory bodies need to be better able to adapt and respond to malicious compliance.

I feel like the CFPB is a bright spot.