In chapter 12 of MP, the author looks upon the safety issue in the automotive industry. The automakers advocate against the government claiming the existence of a lack of economic incentives regarding automotive safety. Furthermore, the automotive industry was compared to railroads and airplanes. In that matter, in the 20s, the government played the major role in incentivizing the aeronautics. Under the Contract Air Mail Act of 1925, the U.S. Postmaster General gave subsidized air mail contracts to encourage the airlines to demand safer, quieter, and larger planes from aircraft manufacturers. This generous government incentive scheme worked: By 1933, plane manufacturers Boeing and Douglas had each developed the modern all-metal, two-engine monoplane for the airlines, and air travel for people took off.  As we observed, incentives play a major role in the economy as they provide support or avoidance of determined industries. Another great example of incentives are in the railroad’s industry also covered in the MP: Under the Pacific Railroad Acts of 1862 through 1866, the U.S. government demonstrated strong economic incentives as they handed railroad companies 103 million acres of public land; But anyhow, that just one type of incentive available.

There are 3 categories of incentives: Moral, Social and Economic Incentives. Recycling bottles in exchange for small amounts of money is a clear example of the cross-over between a moral and an economic incentive. Recycling the bottle in itself satisfies the human desire to contribute to the betterment of the environment. Seeing that climate change is becoming a more pressing issue the option of recycling bottles gives some moral relief to those that take part. In addition to this, the act of recycling bottles or any material really can wield 30 cents per can on average which could total large sums of money in the long run. Furthermore, if the US were to recycle 75% of its waste around 1-2 million new jobs would be created as supported by EPA’s study. In this way, it offers an economic incentive such that profit can be made. In this particular example, both incentives are complementary.

The most obvious of the “Big Ideas” for this course that stands is Business, State and Society. If one chooses the recycle for the economic reason the moral ability to save I am saving the earth one step at a time comes as an additional perk and vise versa. The moral incentive can be seen as the primary motive for most. According to an infographic study done by the GOOD Magazine over 81% of participants in the study recognized a moral benefit of recycling- no landfills. In the same study for those individuals that didn’t recycle regularly, the primary reason was due to the fact that the recycling plants were too far not the fact that it was time-consuming.

Similarly, charges that enforce public safety such as driving under the influence offer an overlapping of two incentives: social and economic. In the social aspect after the receipt of a DUI most driving licenses get suspended for 6 or more months or the possibility of 6-months jail time. Both of these social punishments lead to a tarnished record often isolating them from job opportunities and social situations. The economic incentive i.e charges ranging from $1000- $3000 deter the possibility of intoxicated persons taking the risk of driving. Both incentives possess a beneficial symbiotic relationship such that the added effects of both incentives proves to be a strong deterrent and achieves the goal of keeping roads safe. In this particular case, the strongest deterrent would be the social aspect. If the DUI was solely based on economic gain, a majority of people would pay the fine and have the error be permanently erased. In this way, the mistake would not seep into social situations and would have a low chance of affecting success career-wise. However, having the line blurred allows people to be more cautious seeing that it is their future that comes into play, not just financial stability.