Take a moment to watch Barry Schwartz: The real crisis? We stopped being wise. Using the examples of the current financial crisis and education Barry describes how rules and incentives undermine wisdom. Here a few of my favorite quotes to get you intrigued.
“Rules and incentives may make things better in the short run but they create a downward spiral that makes them worse in the long run.”
“Without intending it, by appealing to rules and incentives we are engaging in a war on wisdom.”