Iran released some hostages, but took more. By contrast, when the U.S. government took a hard-line stance, making clear that holding the hostages only brought Iran grief in the form of international isolation, the hostages were released. In short, financial claims against terrorism state sponsors is a firm response, and the typical response to such firm stands has been to back down, not to retaliate. Good governance is essential to a well-functioning economy and to popular trust in the political system. In recent years, economists and political scientists have come to appreciate the importance of governance for economic development and for the functioning of a free, democratic society.
Predictability is important to a sense of justice as well as to economic decision-making.
In the jargon of the trade, good governance requires transparent, clear, and law- based rules. Some would argue that the U.S. government needs flexibility in its dealings with state sponsors of terrorism. To be sure. But U.S. citizens and businessmen also need clear, transparent, and enforceable rules. Either the law should prohibit the judgements or it should facilitate their collection.