Tag Archives: misaligned incentives

Standardized Testing, Merit Pay, And Misaligned Incentives In The American Education System

Two rhetorical questions: When you pay a loan broker based on the total number of loans he doles out, without considering whether or not the borrowers will actually be able to repay these loans, what happens? When you pay a CEO based on the short-term profits he generates, rather than the long-term stability of the company, what happens? Unless you

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