I awoke this morning, and turned on the radio. It was the ending of the Thom Hartman show on KVT.
A caller was discussing what he called “externalities”
[Factors whose costs are not reflected in the market price of goods and services. Externalities are a loss in the welfare of one party resulting from an activity of another party, without there being any compensation for the losing party. Externalities are an important consideration in cost-benefit analysis. (businessdictionary.com)]
Hartmann commented that the American business model calls for privatizing the profits and socializing the externalities.
He cited two examples:
- Fossil fuels are refined and sold with the profits going to the stockholders. The “wastes” are spewed into the atmosphere. Who pays for these costs? “We” do!
- Gun manufacturers make, sell and profit from their product. People are killed and injured from the misuse of these products resulting in costs for hospitals, law
enforcement, etc. Who pays for these costs? We do!
Hartmann concluded that we need to amend our current business model so that the producers are responsible for the costs of these externalities.
Good ideas. How can we make them happen?