3 ms·

Are you calling a predictable result of vanilla capitalism, that is, some companies succeeding while others fail, a “negative externality”?

heylook 6y ago
Yes. "An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer." [0] Dominating a market so thoroughly that your competitors go out of business and must find another line of work creates a cost for society that is not borne by the winner unless they pay for it through taxation. Namely those costs include retraining, possibly monetary assistance, etc, etc. Beyond that, companies like Amazon[1] and Walmart[2] have well-established histories of paying their workers so little that they have to use SNAP to make ends meet. [0] https://www.investopedia.com/terms/e/externality.asp https://www.investopedia.com/terms/e/externality.asp [1] https://www.businessinsider.com/amazon-employees-on-food-stamps-2018-8 https://www.businessinsider.com/amazon-employees-on-food-sta... [2] https://www.cnbc.com/2020/11/19/walmart-and-mcdonalds-among-top-employers-of-medicaid-and-food-stamp-beneficiaries.html https://www.cnbc.com/2020/11/19/walmart-and-mcdonalds-among-...
- burrows 6y ago
  > Dominating a market so thoroughly that your competitors go out of business and must find another line of work creates a cost for society that is not borne by the winner unless they pay for it through taxation. Namely those costs include retraining, possibly monetary assistance, etc, etc. I’m not an economist and I can’t give a formal account of externalities. But, your reasoning, I think, leads to absurdity. For example, if I start a company to sell generic, mass produced pencils for $1000 a piece then no one will buy from my company and it will be forced out of the market and my principal will be lost. Then in your words, my company failed because of “externalities” from my competitors who are selling pencils at the market rate and who then owe me money. > Beyond that, companies like Amazon[1] and Walmart[2] have well-established histories of paying their workers so little that they have to use SNAP to make ends meet. So eliminate SNAP?
maest 6y ago
Maybe vanilla capitalism isn't the way to go then.
- burrows 6y ago
  Your arguing for an economic system where no producers will fail?
  - maest 6y ago
    I am not, no.
    - burrows 6y ago
      Ok, so what policy are you intimating?

heylook 6y ago

Yes. "An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer." [0] Dominating a market so thoroughly that your competitors go out of business and must find another line of work creates a cost for society that is not borne by the winner unless they pay for it through taxation. Namely those costs include retraining, possibly monetary assistance, etc, etc. Beyond that, companies like Amazon[1] and Walmart[2] have well-established histories of paying their workers so little that they have to use SNAP to make ends meet. [0] https://www.investopedia.com/terms/e/externality.asp https://www.investopedia.com/terms/e/externality.asp [1] https://www.businessinsider.com/amazon-employees-on-food-stamps-2018-8 https://www.businessinsider.com/amazon-employees-on-food-sta... [2] https://www.cnbc.com/2020/11/19/walmart-and-mcdonalds-among-top-employers-of-medicaid-and-food-stamp-beneficiaries.html https://www.cnbc.com/2020/11/19/walmart-and-mcdonalds-among-...

burrows 6y ago
> Dominating a market so thoroughly that your competitors go out of business and must find another line of work creates a cost for society that is not borne by the winner unless they pay for it through taxation. Namely those costs include retraining, possibly monetary assistance, etc, etc. I’m not an economist and I can’t give a formal account of externalities. But, your reasoning, I think, leads to absurdity. For example, if I start a company to sell generic, mass produced pencils for $1000 a piece then no one will buy from my company and it will be forced out of the market and my principal will be lost. Then in your words, my company failed because of “externalities” from my competitors who are selling pencils at the market rate and who then owe me money. > Beyond that, companies like Amazon[1] and Walmart[2] have well-established histories of paying their workers so little that they have to use SNAP to make ends meet. So eliminate SNAP?

maest 6y ago

Maybe vanilla capitalism isn't the way to go then.

burrows 6y ago
Your arguing for an economic system where no producers will fail?
- maest 6y ago
  I am not, no.
  - burrows 6y ago
    Ok, so what policy are you intimating?