The entire cash-on-a-pallet debate about the $400 million payment the U.S. made to Iran in January rests on a single assumption: that paying ransom for hostages is a bad thing. But it isn't, at least not always.
All negotiations and transactions depend on leverage. Hostages are a form of leverage, and so is money. So is military force. Frequently, paying ransom is the least expensive and most effective way to achieve the goal of recovering hostages.
And on close reflection, ransom payments don't really create new incentives for bad actors to take hostages — because those incentives already exist, and can't be eliminated by insisting that paying ransom is something the U.S. will never do.
Why does a country like Iran take hostages in the first place? Simply put, it's trying to get vastly stronger actors, like the U.S., to do what it wants. In this way, a hostage-taking country is not so different from a brigand in an unpoliced area who takes hostages as a moneymaking venture. The kidnapper is exploiting two vulnerabilities.
First, the kidnapper can get hold of a person who is unprotected, and can't easily be caught without the hostage being harmed. Second, the hostage wants to live freely — and the hostage's friends and family want the same thing for him or her.
There are really only two ways to eliminate hostage-taking, and they correspond to the two vulnerabilities.
One is not to get grabbed in the first place. That isn't very realistic for all Americans, who travel freely around the globe and sometimes make themselves vulnerable to capture.
The other is not to care about the hostage being taken at all. At the personal level, that requires both hostages and their friends and family to be prepared to accept indefinite or even permanent detention. Understandably, that's extremely rare.