Failures of Marginal Coercion
One bit of economic theory that doesn't get talked about is marginalism. That is, that the value of things and how they affect our behavior is usually based on how much adding or subtracting a little bit from our current circumstances changes them. The classic examples is that we put a much higher price on diamonds than on water even though the total value we get from water is much higher than from diamonds since we'd quickly die with no water. But we have lots of water and few diamonds so we get more value from one more diamond than one more cup of water, and thus we put a higher prices on the diamonds despite water having a higher total and even average value. The same can apply when people are trying to incentivize different behaviors. A while ago my state was considering a carbon tax which would raise the price of gasoline among other things. But all the money it raised would be distributed evenly back to the state's tax payers. My coworker was co...