Negative Externalities Quotes

"Free markets" is a very general term. There are all sorts of problems that will emerge. Free markets work best when the transaction between two individuals affects only those individuals. Most often, a transaction between you and me affects a third party. That is the source of all problems for government. That is the source of all pollution problems, of the inequality problem. This reality ensures that the end of history will never come.

What I have been trying to remind people of for the past 40 years is that you can’t operate an entire conventional system, whether it’s economics, business or the way we live and surround ourselves, what we eat, without recognizing that there are severe negative externalities that are not being accounted for.

Markets are lethal, if only because of ignoring externalities, the impacts of their transactions on the environment.

The gross national product includes air pollution and advertising for cigarettes, and ambulances to clear our highways of carnage. It counts special locks for our doors, and jails for the people who break them ... It does not allow for the health of our families, the quality of thier education, or the joy of their play.

The obvious one, in a market system, in a really functioning one, whoever's making the decisions doesn't pay attention to what are called externalities, effects on others. I sell you a car, if our eyes are open we'll make a good deal for ourselves but we're not asking how it's going to affect her [over there.] It will, there'll be more congestion, gas prices will go up, there will be environmental effects and that multiplies over the whole population. Well, that's very serious.

I'm not sure the oil producers are enjoying real growth. That troubles me. For experience has shown that oil can be more of a curse than a blessing. And not only in Africa.

It is always better to tax bad things than good things.

People 'over-produce' pollution because they are not paying for the costs of dealing with it.

There is a divergence between private and social accounting that the market fails to register. One essential task of law and government is to institute the necessary conditions.