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There is no rigorous, objective methodology to account for externalities. It’s a bit like the ideal thermodynamic “closed system” which cannot actually be reali
by jkhdigital 3y ago
There is no rigorous, objective methodology to account for externalities. It’s a bit like the ideal thermodynamic “closed system” which cannot actually be realized—it is simply not possible to draw a clean line between the various costs of economic activity and assign them to responsible parties because the economic activity itself is embedded in a cyclical environment.
My point is that we should not delude ourselves into thinking that we can arrive at “rational” decisions about resource use by reducing everything to accounting.
- ordu 3y ago> My point is that we should not delude ourselves into thinking that we can arrive at “rational” decisions about resource use by reducing everything to accounting. Have you any idea what should replace rational decisions and reducing everything to accounting? I cannot imagine what the other way may be, but I would like to know.
- imtringued 3y agoWhat you are saying is ultimately that market economies fail because of the economic calculation problem...