5 ms·
> but it's one of the many consequences in living in a democratic and diverse society. A democratic and diverse society that's structured such that the costs o
by CarelessExpert 6y ago
> but it's one of the many consequences in living in a democratic and diverse society.
A democratic and diverse society that's structured such that the costs of the negative externalities that result from individual choices are born by the broader community and not the individual. In this particular case, the most immediate and obvious examples include air pollution and associated consequences, as well as additional wear and tear on public roadways.
Of course, the solution to negative externalities is always the same: tax the behaviour (in this case, fuel taxes, taxes on large vehicles, and tax breaks for car pooling, transit, and other similarly less damaging choices) so that the costs are born by the person engaging in said behaviour.
Naturally, whenever folks are asked to pay for these externalities, the reaction is an immediate and passionate rejection of "big government" curtailing "freedoms"--in this case, the freedom to make everyone else pay for the consequences of their choices. Why? Because people want to engage in the behaviour without having to also own the consequences. While that's a form of freedom, it's an irresponsible one, born of a uniquely self-centered conception of "freedom" that bears a striking resemblance to narcissism.
Pity the lack of basic economic education prevents people from understanding that they're free riding on the rest of us by failing to pay for their damaging behaviours.
It's especially ironic since these same objections are often associated with individuals who would decry the welfare state, which similarly involves society bearing the costs to support individual behaviours; it's just much more honest about it.
- throwawaygh 6y ago> the solution to negative externalities is always the same Not really. There are lots of actions that have negative externalities and which we choose to treat differently. E.g., consider drug abuse, financial fraud, violent crime. We do not attenuate the incidence rate of these behaviors using the tax code. The idea of using the tax code to shape behavior by manipulating market forces is relatively new and has a mixed track record. This is true even market-based solutions to decarbonization. E.g., "cap & trade" crucially includes a "cap" that has to be enforced one way or another.
- CarelessExpert 6y ago> Not really. There are lots of actions that have negative externalities and which we choose to treat differently. E.g., consider drug abuse, financial fraud, violent crime. We do not attenuate the incidence rate of these behaviors using the tax code. I'm specifically talking about directing behaviours that remain legal. I don't expect governments around the world are gonna ban the F-150. As for things like cap and trade, you're right, that's an alternative mechanism. At bottom it's the same, though: assign an economic cost to the behaviour, and then use the market system to manage the behaviour. Still, your point is well taken!