Monday, April 30, 2007

WSJ: Rules v principles

The Wall Street Journal today has a piece on rules versus principles. Thou shall not kill is a principle. If the Ten Commandments were written like accounting rules then they would require many more words and would be difficult to understand and expensive to apply. Principles are easy to understand but require judgment to apply. That's a good thing. Using judgment is more rewarding, psychologically and economically, than applying rules.