The problem lies in the fact that “paternalism” is the operative word. It could be “totalitarian” paternalism, “libertarian” paternalism, or even “vegetarian” paternalism. As long as the basic facts involve government acting as a parent, the concept is bad.
If you accept the notion that government should exercise some authority in the spheres of life Sunstein and Thaler discuss, then “libertarian” paternalism is better than other options. But the best option is to get government out of the way of private decision makers, ensuring that “libertarian” is the operative word.
