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Externalizing costs is one of the larger problems with capitalism. If I can pollute the environment with out that cost being captured, then I can essentially ex
by Crye 9y ago
Externalizing costs is one of the larger problems with capitalism. If I can pollute the environment with out that cost being captured, then I can essentially extract value from others indirectly. If moving people from their homes causes psychological damage or civil unrest, then I can externalize those costs as well.
Regulation is supposed to prevent or limit those externalizing costs. However it's nearly impossible to put value on something like that.
- krona 9y ago> Regulation is supposed to prevent or limit those externalizing costs. However it's nearly impossible to put value on something like that. Could you elaborate? I mean, the common law is littered with examples (stare decisis) throughout the industrial revolution which establishes strict liability for, say, someone else's right to enjoy their own land or property. In the UK, this extends to a tenants right to peacefully enjoy his home, even when he doesn't own it.
- rocqua 9y agoBesides external costs, concentration of power due to 'economies of scale' are also somewhat of a downside of capitalism. It is rather non-conducive to a free market and capitalism without free markets really sucks.