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> Both parties are better off after that transaction. What about the externalities of that transaction? * If meat, what was killed to produce it? If veg, what
by retzkek 4y ago
> Both parties are better off after that transaction.
What about the externalities of that transaction?
* If meat, what was killed to produce it? If veg, what was removed from the ground (and how will it be replaced)?
* Who was exploited in the production?
* What damage did you cause while traveling to the store?
* What damage was done while getting the goods/supplies to the store?
* What infrastructure was required to facilitate the transaction? What damage and opportunity costs did that inflict?
The economist would hand-wave all that away as being priced in by the "efficient" economy. Yet even the tiniest inefficiency (say, un/under-accounted damage to the environment caused by burning petroleum to power the vehicles involved) compounds over billions of such transactions every day over decades into massive debts that humanity must ultimately account for.
- kergonath 4y ago> What about the externalities of that transaction? You’re entirely right, though for now I am indeed going to wave my hands and argue that it was a first-order simplification, and that externalities do not turn it into a zero-sum game :) In the grand scheme of things, yes, lack of foresight is going to bite us in the backside.