With so much discussion regarding legislation at the moment, perhaps it's timely to share this TED presentation, (streaming, vid) which considers the carrot & the stick.
The following words are from the TED website:
Barry Schwartz makes a passionate call for “practical wisdom” as an antidote to a society gone mad with bureaucracy. He argues powerfully that rules often fail us, incentives often backfire, and practical, everyday wisdom will help rebuild our world.
For some reasons the words "Barack Obama" and "Nanny state" spring to mind.