> This contradicts your earlier point that markets can't resolve negative externalities. Presumably a tax will cause a marked market response.
Not at all. Things like carbon taxes internalise the externalities. It makes all electricity consumers pay the true cost of electricity, at least as far as can be determined.
I know that libertarians are as dogmatic as any marxist, but it seems to me that you should be more interested than anyone else in internalising the true cost of things into their price?
If you want to rely on the market as much as possible, then all the more reason to make sure that the cost of making things includes all the costs. Only then can consumers make a considered purchase.
As the text in your link so eloquently puts it:
"Social inefficiency arises when the social costs associated with external effects, such as air or water pollution, are not incorporated into the cost of producing the pollution generating product or its market price."
Almost every single one of your statements here reflect a misunderstanding of my argument, basic economics and/or your own Austrian philosophy.
> Almost every single one of your statements here reflect a misunderstanding of my argument, basic economics and/or your own Austrian philosophy.
You think I don't understand my own thoughts (which aren't Austrian but merely mine). Meanwhile I think you don't understand what I'm expressing. Thus, we agree to disagree. Thanks for the conversation. Bonne chance.
Not at all. Things like carbon taxes internalise the externalities. It makes all electricity consumers pay the true cost of electricity, at least as far as can be determined.
I know that libertarians are as dogmatic as any marxist, but it seems to me that you should be more interested than anyone else in internalising the true cost of things into their price?
If you want to rely on the market as much as possible, then all the more reason to make sure that the cost of making things includes all the costs. Only then can consumers make a considered purchase.
As the text in your link so eloquently puts it:
"Social inefficiency arises when the social costs associated with external effects, such as air or water pollution, are not incorporated into the cost of producing the pollution generating product or its market price."
Almost every single one of your statements here reflect a misunderstanding of my argument, basic economics and/or your own Austrian philosophy.