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txru | 1 year ago

A core economic concept is externalities, positive and negative. Positive externalities are undervalued by the market, negative ones are overvalued by the market, like cigarettes.

There aren't many ways to resolve externalities. If you pay people to quit cigarettes, people start smoking to get paid for quitting.

For negative externalities, sometimes you just really have to make the good more expensive, or we'll end up bearing the much larger societal costs down the road, like we did for lead in gasoline and widespread cigarette smoking.

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