Motor vehicles are among the most dangerous products sold anywhere. But according to many auto-industry experts, the eventual transition to driverless vehicles will drastically lower the economic and noneconomic costs of auto accidents. How should the automobile tort/insurance regime be rede-signed to take into account the emergence of driverless vehicles? In the new issue of Regulation, Kyle D. Logue proposes to replace our current auto tort regime with a single comprehensive automaker enterprise liability system. Also in this issue, Ike Brannon and M. Kevin McGee argue that the Trump administration’s decision to rescind H-4 visa holders’ ability to work fails to meet any credible benefit–cost analysis.
“Market failure” is a common justification for new government policies. Proponents of interventions love to point to instances of apparently imperfect markets and assume that government taxation, subsidies, and regulation can seamlessly perfect them, thus maximizing social welfare. But according to a new paper by Cato scholar Ryan Bourne, this simplistic approach—predicated on the idea that government can perfect markets—leads to more intervention or higher taxes than what is optimal and has significant unintended consequences.