That puts a lot of pressure on people to take whatever job is available, discourages them from investing more in education, and, as a recent study by the Consumer Financial Protection Bureau suggested, may deter risk-taking and innovation.
The second levy, called the "financial activities tax", or FAT, is on the profits and remuneration of banks and this money can be paid into general revenue, meaning that it is not geared for insurance but to deter risk-taking behaviour where banks trade on the implicit guarantee that they are too important to fail, and take home large pay packets while taxpayers pick up their losses.
However, such utter dominance is usually accompanied by several common handicaps: management incentives deter risk-taking; organizational priorities are on preserving harmony and consensus, which result in compromises and half-measures -- a recipe for flawed products; an overwhelming focus on not perturbing the core business means incremental innovation.
In sum, the Dutch model demonstrates that robust risk equalization may largely deter risk-selection.
The advantage today is with the advertisers, who will find it that much easier to stifle criticism and deter journalistic risk.
The measure can assist them deter the risk of non-continuance of program operations.
As an ancillary benefit, the White House claims, it would also deter excessive risk taking.
Deaths have increased exponentially, but have failed to deter others risking the same fate.
The second levy, though, may end up generating revenue rather than deter excessive risk-taking behaviour.
The theory is that exposure to the grim realities of life in prison will deter at-risk youths from future crime.
