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By externalities you seem to mean the choices that other people make. unless the choice is to not biy their product how or why woukd these get factored in? how

By externalities you seem to mean the choices that other people make. unless the choice is to not biy their product how or why woukd these get factored in? how would you do so and retain a nominally free society? How would you justify this being our biggest problem?

lovich 4y ago
Nah man, externalities here means externalities. In this specific instance the meat producing corporations are not paying for the increased risk of producing antibiotic resistant pathogens, which is a cost the rest of the planet has to bear. Price them in the same way any insurance model prices in risk. > how would you do so and retain a nominally free society? Nominally free doesn’t mean you can do whatever you want. Your right to swing your fist ends at my nose, as the saying goes. If you want to take actions that affect everyone negatively then you should be paying for that. Inversely there are also positive externalities and we should probably subsidize/pay groups who produce those
biorach 4y ago
That's not what externalities means. Google "pricing in externalities"
BobbyJo 4y ago
Externalities refers to the economic concept of external costs: "An external cost is a cost not included in the market price of the goods and services being produced, i.e. a cost not borne by those who create it". The less real costs are factored into a product, the less the market able to efficiently price it. Many of our greatest modern problems could be ameliorated if we handled external costs better: pricing industrial runoff, CO2 emissions, antibiotic resistance, etc. We mostly choose not to price in those costs, because the consequences of such are generally delayed, and it allows us greater standard of living for the moment. When given the options "meat will be cheaper but infections harder to cure in 20 years", or "energy will be cheaper but large scale climate disasters will be common in 50 years", we've chosen cheap meat and energy.
- xoa 4y ago
  >The less real costs are factored into a product, the less the market able to efficiently price it. Many of our greatest modern problems could be ameliorated if we handled external costs better: pricing industrial runoff, CO2 emissions, antibiotic resistance, etc. I'll add to this that in many cases this also eliminates a lot of the subjective/contextless moralizing around spending of energy/mass surplus that goes on, resulting in more individual freedom. It's common in environmental discussions for example for someone to complain about <xyz> form of transportation, often cars or aircraft but I've also seen it come up in rockets. This can lead down all sorts of rabbit holes in terms of cost/benefit etc. But the entire discussion could be avoided as far as AGW if we'd simply make all hydrocarbon fuels CO2 net neutral (either via producing them directly from atmospheric CO2 with renewable energy or scrubbing an equal tonnage of emissions from the atmosphere for every ton CO2 released). Then whatever price the fuel was would fully reflect the CO2 cost, which would naturally filter out to all users, and everyone would be free to spend on that or not as they wished. All sides would optimize to the pricing, producers would search for ways to make the net neutral hydrocarbons cheaper, users would seek ways to use them more efficiently, and those buying services would do the same. That's a Free Market at work, the emergent result of lots of decentralized individual decisions is a much more efficient allocation of resources, and without any central judgement around "oh, that's not a worthy usage" needed.

lovich 4y ago

Nah man, externalities here means externalities. In this specific instance the meat producing corporations are not paying for the increased risk of producing antibiotic resistant pathogens, which is a cost the rest of the planet has to bear. Price them in the same way any insurance model prices in risk. > how would you do so and retain a nominally free society? Nominally free doesn’t mean you can do whatever you want. Your right to swing your fist ends at my nose, as the saying goes. If you want to take actions that affect everyone negatively then you should be paying for that. Inversely there are also positive externalities and we should probably subsidize/pay groups who produce those

biorach 4y ago

That's not what externalities means. Google "pricing in externalities"

BobbyJo 4y ago

Externalities refers to the economic concept of external costs: "An external cost is a cost not included in the market price of the goods and services being produced, i.e. a cost not borne by those who create it". The less real costs are factored into a product, the less the market able to efficiently price it. Many of our greatest modern problems could be ameliorated if we handled external costs better: pricing industrial runoff, CO2 emissions, antibiotic resistance, etc. We mostly choose not to price in those costs, because the consequences of such are generally delayed, and it allows us greater standard of living for the moment. When given the options "meat will be cheaper but infections harder to cure in 20 years", or "energy will be cheaper but large scale climate disasters will be common in 50 years", we've chosen cheap meat and energy.

xoa 4y ago
>The less real costs are factored into a product, the less the market able to efficiently price it. Many of our greatest modern problems could be ameliorated if we handled external costs better: pricing industrial runoff, CO2 emissions, antibiotic resistance, etc. I'll add to this that in many cases this also eliminates a lot of the subjective/contextless moralizing around spending of energy/mass surplus that goes on, resulting in more individual freedom. It's common in environmental discussions for example for someone to complain about <xyz> form of transportation, often cars or aircraft but I've also seen it come up in rockets. This can lead down all sorts of rabbit holes in terms of cost/benefit etc. But the entire discussion could be avoided as far as AGW if we'd simply make all hydrocarbon fuels CO2 net neutral (either via producing them directly from atmospheric CO2 with renewable energy or scrubbing an equal tonnage of emissions from the atmosphere for every ton CO2 released). Then whatever price the fuel was would fully reflect the CO2 cost, which would naturally filter out to all users, and everyone would be free to spend on that or not as they wished. All sides would optimize to the pricing, producers would search for ways to make the net neutral hydrocarbons cheaper, users would seek ways to use them more efficiently, and those buying services would do the same. That's a Free Market at work, the emergent result of lots of decentralized individual decisions is a much more efficient allocation of resources, and without any central judgement around "oh, that's not a worthy usage" needed.