One problem with disclosure regulation is that people grow accustomed to the warnings and caveats and their eyes glaze over. They stop paying attention.
So let’s say you are the Über-regulator. You get to warn people about two things. Once.
Of course they may not listen to you at all, but let’s assume you have enough credibility from your political post to be given half an hour on network TV and subsequent extensive coverage and commentary on blogs and Twitter. That said, especially useful warnings, such as “You’re not as smart as you think” are perhaps especially likely to be ignored. “Honor They Superior!” is perhaps also a non-starter, though you may try it if you wish.
Which two things do you pick for your warning?
“Driving is dangerous”
“Fight nuclear proliferation.”
“Don’t let your kid near a bucket.”
“Politics isn’t about policy.”
“Beware the Ides of March!”
“Some people out there suck!”
The correct answer is not obvious. And what does this imply about regulation more generally?
I thank Bryan Caplan for a useful conversation on this topic.