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Cake day: July 6th, 2023

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  • Corporations aren’t moral agents, and therefore a fine against a corporation should be intended to compensate for the illicit harm done (adjusted by the probability of getting caught). The compensation necessary does not depend on how much money the corporation has available. In other words, it’s like a “you break it, you buy it” policy - you charge as much as the broken thing costs, regardless of how much money the person who broke it happens to have.

    Edit: here’s another way of thinking about it. A corporation’s motivation to break a rule is equal to (expected_profit - fine * chance_of_getting_caught). You want that motivation to be less than the harm breaking the rule does. The size of the corporation isn’t a variable in the equation.