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| quote: | Originally posted by DJ_Elyot
Capitalism is great and all, but as we know, the system behaves in a globally sub-optimal manner when individuals and corporations are allowed to EXTERNALIZE costs. Tim's might be making maximum profit by selling you a paper cup with a plastic lid, but the profit they make there is at the cost of whoever has to process the garbage, if the cups do indeed become unrecyclable. It is the government's job to regulate the economy by preventing market failure due to externalization. By enacting this type of legislation, they make the whole system behave in a more globally optimal manner, even if it is less locally optimal for a single entity. Presumably they've determined that the TOTAL cost to a society as a whole is decreased when paper cups with plastic lids are banned.
The reason this whole war against packaging needs to be waged is that it is a HUGE area in which corporations are allowed to externalize their costs. The environmental catastrophes that happen in China/Thailand/etc are PRECISELY the consequences of industrialization with no government regulation. Corporations always take the cheapest way out (they MUST, in fact, or they're fucking over their shareholders, which is illegal); whether this means dumping shit into the river or giving you packages that can't be recycled, it's the same problem. The government's role is precisely to tax/fine/ban this type of behaviour (or offer incentives for behaving more "green") to force the corporations to behave in a manner that is more globally optimal (ie to push the Nash Equilibrium of the system towards greater global optimality; to solve the prisoner's dilemma).
Yes, the costs are greater in the short term, but society as a whole will incur less cost in the long term. The fact that so many people didn't realize this until now is precisely WHY we have so many environmental problems.
Now, that said, a government can't blindly go banning things which would end up having little to no long term benefit just because they're SLIGHTLY suboptimal. But in an ideal world, the government would do a full cost-benefit analysis with all the parties involved and enact such legislation only when it is truly beneficial. Presumably this is the case here, but I won't argue with those who disagree . |
thank you for copy-pasting your economy 101 textbook.
Economic theories without real life application and no common sense is useless.
That's why I am against this one, there's no alternative at this moment for these paper cups/plastic lids.
If they were but the industry still refused to use them, then yes, a ban is the way to go, but there isn't and that's why this regulation will harm and piss off customers and buisness alike.
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