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This, in my opinion, is the largest role of government in a capitalist society. Capitalism is not sustainable without guard rails. By design, a company will alw
by rsuelzer 5y ago
This, in my opinion, is the largest role of government in a capitalist society. Capitalism is not sustainable without guard rails. By design, a company will always pass costs onto society if it can.
The government has an obligation to ensure negative economic costs are paid by the producers and consumers of goods and services.
An example of this would be Walmart for years relying almost exclusively on Medicaid benefits for their employees healthcare. Walmart is hardly the worst company in terms of passing economic costs on to others or future generations. But, the point is, that unless the government forces a company to pay the true costs of doing business it's always going to result in market distortions.
It's a design flaw of capitalism, which is actually easy to correct within an equitable political system. However, this is much more rare than it ought be.