Comments on: Capitalism could still get a stem to stern overhaul. To keep score in the Revolution track something economists call “externalities.”

By: querico

querico — Wed, 07 Oct 2009 13:47:19 +0000

Here is another example of ‘Externalites’. A country goes to war at the behest or benefit of major corporations (United Fruit Co., Haliburton, etc.), and the taxpayer pays the tab in blood and money.

By: Steve Old Boy

Steve Old Boy — Wed, 07 Oct 2009 12:24:08 +0000

Another great article Jim.

‘Externalities’ would be the not-so-unintended consequences of the corporatism that is our government.

As you stated, “Government…has become ever more important to the creation of private profit.” You’re exactly right, which is what’s so disturbing. One agency after another has been captured by the industry they claim to regulate.

Apologies for the negativity about such an optimistic post. I’m struggling to see the upside here. Anyway thanks as always for the terrific insights.

By: richard.bready@gmail.com

richard.bready@gmail.com — Wed, 07 Oct 2009 08:30:42 +0000

This is an elegant summary of Schumpeter’s central question: Will capitalism capture government, or will the social costs of capitalism (the externals) lead society to empower government and institute socialism? The discovery that resource use is a zero-sum situation for humans makes the question that much more pointed. So does the estimate that one billion lives are now surplus to labor needs. $22 a month for three months would look good to a lot of the people who will spend their whole lives in slums.

By: davidghulse

davidghulse — Wed, 07 Oct 2009 05:45:11 +0000

The problem created when government sets the cost of externalities is the pressure to set costs astronomically high for activities which are not politically correct.

By: DanielHicks

DanielHicks — Wed, 07 Oct 2009 03:11:49 +0000

I think your essay was very well written and thoughtful. However, like you said, you will hear back about the global warming. All I have to say is PLEASE pick up a GRADE SCHOOL textbook on science and read it. Just like the stock market, everything else on this earth always, always, always reverts back to the mean. That is how this earth has stayed intact as long as it has. Even if global warming exists, it is nothing short of the earth healing itself and replenishing itself of fossil fuels. Furthermore, I have a hard time believing that global warming exists in light of all the RECORD cold temperatures we have had WORLDWIDE over the last few years. In fact, one of the major reasons agriculture is expected to do so well over the next several years is because of climate change, but it is the cooling, not the warming that is going to cause it.

I’d be more than happy to debate this topic with you using nothing short of common knowledge, common sense, and basic science if you want to email me back in private. I have never once heard any argument for global warming more detailed than “scientific evidence overwhelmingly suggests there is global warming”, but NEVER any details backing it up. Anybody can say that about ANYTHING.