The amiable Joe Stiglitz says that whenever there is a "spillover"—my ugly dress offending your delicate eyes, say—the government should step in. A Federal Bureau of Dresses, rather like the one Saudi Arabia has. In common with Thaler and Krugman and most other economists since 1848, Stiglitz does not know how much his imagined spillovers reduce national income overall, or whether the government is good at preventing the spill. I reckon it's about as good as the Army Corps of Engineers was in Katrina.

Thaler, in short, melds the list of psychological biases with the list of economic imperfections. It is his worthy scientific accomplishment. His conclusion, unsupported by evidence?

It's bad for us to be free.

I looked around the room in amazement. This was the heart of a supposedly progressive San Francisco Bay Area, and yet the city planned on partnering with a powerful intelligence contractor to build a police surveillance center that, if press reports were correct, officials wanted to use to spy on and monitor locals. Something made that scene even stranger to me that night. Thanks to a tip from a local activist, I had gotten wind that Oakland had been in talks with Google about demo-ing products in what appeared to be an attempt by the company to get a part of the DAC contract.

“We wanted to surprise everyone and bring world peace and then we’re being escorted out by security guards, which I think is really unfair,” he added. “Doesn’t everyone want peace?”