My first act as president

Let me make it official that if I ever become president, my first act will be to ban the sale of opaque umbrellas in the United States. I see no reason why this would not cause a large increase in social welfare, and maybe even a Pareto improving shift.

I'm sure there are those of you who believe that markets are perfect and hence we need only make clear umbrellas an option. However, empirical evidence, as well as theory suggests this is incorrect in the umbrella market. First of all, clear umbrellas are already available and we do not see everyone carrying around clear umbrellas. Secondly, there is a stigma attached to clear umbrellas that imposes a social cost to males who use a clear umbrella. This stigma should be removed.

Theoretically, a situation in which everyone carries a clear umbrella can not be a Nash equilibrium, because an individual would be better off carrying an opaque umbrella which would act as a credible threat. The rest of the people with clear umbrellas would avoid the opaque umbrella, and the opaque umbrella would bare none of the costs of avoiding sidewalk crashes. Empirical evidence shows that nearly everyone carrying an opaque umbrella is a stable equilibrium, and my intuition tells me that almost everyone carrying a clear umbrella would not be a stable equilibrium, if an equilibrium at all.

Since the social optimum can not exist in equilibrium, it is the government's responsibility to impose laws which send us to the social optimum, and as president, I would pledge to do so.