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Originally Posted by camaraderie
You're right...there is NO good answer but personal responsibility rather than public responsibility is the BETTER answer.
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I'm with Cam. This is about ensuring that people own their responsibilities, which includes (especially) when things go wrong. To many boat owners are effectively under-capitalized and don't even realize it.
The key here is that the economics of the enforcement regimen must be sound, and then people
must be aware of them. To whit:
1) It must be cheaper to carry salvage insurance then salvage a boat yourself. I trust the insurance actuaries to generally do a good job measuring & valuing this risk transfer onto themselves.
2) It must be cheaper to arrange salvage of the boat yourself than to leave it to the state.
#2 is where the current system seems to fail--if it costs $10,000 to salvage a boat sitting on mud, plus the overhead cost of managing the people and processes to provide it through the government, then the fine should cover that and would therefore reasonably meet requirement #2. It sounds like the fines being discussed are pretty minimal as compared (wasnt it something like $5,000? Probably needs to be 5x that!), which means that #2 will not produce the desired behavior on the part of negligent boat owners.
One of the theories behind government is that "regulations exist to ensure that externalities are put back onto their creators." This regulation would fail to do so. If people abuse the system (take the fine and walk away), then that becomes Moral Hazard (taking a risk, then letting the government bail you out afterwards when things go wrong), which is even worse.