Preventive Actions have Costs
If a disaster is looming over society (or a part of a society), what is the best course of action? Preventing it would be ideal, of course. But what if prevention is not an option – what then is the best course of action? This is the question Tim Harford explores in his podcast . He cites the nuclear plant in Fukushima as an example. A huge tsunami hit the nuclear reactor; and the safety systems proved inadequate. The risk of nuclear fuel leaking and the resultant radiation risks to everyone in the vicinity loomed large. The Japanese authorities evacuated all villages in a certain distance of the nuclear plant. It being a rich country, the evacuees were given compensation for relocation and a continued stipend after that. Over 1,64,000 of them. Sounds good, right? Except a good number of them couldn’t adjust to life in new places. Some were too old; others had no skills relevant to the new places they had to move to. A handful even committed suicide. Worst of all, ...