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Maybe this suggests replacing "sharp-edged" bans with "terraforming" taxes. Only, how do you sell that to the voting masses? In the FDA example, this would have to look something like "instead of making the FDA/its employees subject to legal penalty if they pass some threshold of neglect in approving a drug that passes some threshold of side effects, tie their funding/salary to the volume of side effects"

Strathern/Goodhart's law - Any measure that becomes a target ceases to be a good measure. You haven't actually solved anything - you've just changed the incentive to "control the number of side effects which get reported, or the number of incidents which legally can be described as 'side effects'."