Megan McArdle asks if it’s okay to steal. (I’m going to go with no.) And if not, why do people think it’s okay to default on their debts?
Never underestimate the power of a person to rationalize their sin.
POSTSCRIPT: This exchange is pretty good:
Peter Twieg One common variant of this argument that I’ve run into states that because lenders price default risk into the price of the loan, in the big picture defaulting is simply a fulfilment of their prior expectations and thus not a big deal – your marginal contribution to a higher price is so tiny as to not really be blameworthy at all. Concentrated benefits, diffuse costs..
odinbearded It’s funny how close that is to another argument. You know, department stores build a certain loss ratio into their prices so they’re not actually losing anything when I take that nice tie.